New research has revealed that elderly travellers may be paying too much for their travel insurance.
While this cover is relatively inexpensive for younger holidaymakers, premiums for travel insurance for the mid-50s and older increase much faster, doubling by the time you reach your early 70s.
While there is some justification for higher premiums for older travellers, insurance companies may still be overcharging for cover. Keep reading to find out why.
The cost of travel insurance is determined by a number of factors, most importantly the likelihood of you making a claim on your policy. So, as travellers get older, they are more likely to claim on their insurance and the average size of their claims is also larger.
The Daily Telegraph recently published research that showed that the average claim that someone makes in their 70s is three times higher than the average claim of a forty-something.
However, if you are still travelling in your late 70s and early 80s, both the frequency and average size of claims starts to fall – before leaping again once you reach their late 80s. The research found, however, that this improvement is not reflected in the pricing of travel insurance. Once you reach your mid-70s your premiums will continue to go up even though insurers are paying fewer claims for lower amounts.
Writing in the newspaper, insurance expert said: “This suggests that by the time insurance companies have got you used to paying much more for your travel insurance in your 60s and early 70s, they have an open door to continue ratcheting up premiums in your late 70s.”
One of the problems facing older travellers is that the travel insurance market remains uncompetitive for people with pre-existing medical conditions. Once you reach the age of 75 many insurers simply won’t offer cover, reducing the choice of deals available. While these companies have to point you in the direction of an insurer that will take your business you aren’t guaranteed to be offered a competitive premium.
Another problem is that older travellers are less likely to shop around online for cover. Even if you do head onto the internet to find a policy, the choices available on the popular comparison websites can sometimes be limited. The Daily Telegraph reports that a web search for travel insurance for an 84 year old man on a leading comparison site brings back quotes from just two brands with the price ranging from £560 to £2,200.
If you are struggling to find an insurer to cover you it can pay to speak to a specialist comparison site or an independent insurance broker. Get in touch with a site such
If you’re caught in this trap, it can be well worth using a broker to help you get a better price. The industry trade body, BIBA, will help you find one in your local area.
The Telegraph concludes that ‘only if customers demand a better deal will the industry deliver it. At the moment, many elderly travellers are paying more than they should have to.’