Can older travellers cut insurance costs?
Hunting for affordable insurance for your first overseas trip since the pandemic began? You may be in for a nasty surprise if you’ve celebrated a big birthday recently.
According to new data from Which?, insurance policies become a lot more expensive for those over 65, and can double past the age of 70 – even if you’re healthy – with travel being the worst culprit. The watchdog found that options dwindled as a customer’s age increased, with 76 travel insurance quotes available for a 55-year-old and just seven for an 80-year-old.
“Industry stats suggest that older age groups claim more frequently, and for higher amounts – on average – than younger travellers,” says Gareth Shaw, head of money at Which?. “Premiums consequently rise with this increased level of risk, and many insurers also have maximum age limits – meaning the very old have far less choice when shopping around for insurance.”
But there are ways to cut costs, even over the age of 65...
Don’t stick with the same provider
“If you’re over the age of 65 and want to keep the cost of your travel insurance down, it’s essential to shop around for the best possible price before picking a provider,” says James Andrews, senior personal finance editor at Money.co.uk, which has an insurance comparison tool. Other sites include Confused.com and MoneySupermarket.
Don’t double up unnecessarily
Another mistake is thinking you need health insurance on top of travel cover, when most over-70s travel insurance policies automatically include medical cover as standard. James adds: “When you buy your travel insurance, make sure you get a list of exactly what’s covered under the policy, so you can avoid paying for unnecessary extras.”
Get expert help if you need it
You may be better using a broker or going to specialist insurance firms.
“A broker’s job is to help customers find appropriate cover,” explains Gareth.
He recommends using the British Insurance Brokers’ Association (BIBA) Find Insurance service which lists brokers by area of expertise.
Compare single trip and annual policies “Pre-pandemic, one of the best ways to keep the cost of your travel insurance down for over 70s was to take out annual cover, rather than paying for a single trip policy,” says James. It’s wise to compare both options, but he warns that “if international restrictions change in the next year and borders close, you’ll end up with an annual policy that you can’t use”.
Gareth adds: “Some providers will offer single trip cover to customers that they wouldn’t sell annual cover to. It’s therefore worth looking to see what single trip policies are available.”
See if you can bag a freebie
James suggests taking out a different product that includes travel insurance. He says: “Some credit cards and paid for bank accounts offer this, for example.” But check the fine print to make sure you aren’t excluded by age and the insurance is up to scratch.