Cover blows
Beware the travel insurance traps that can hit OAPs in the pocket
Hunting for affordable insurance for your first overseas trip since the pandemic began? You may be in for a nasty surprise if you’re heading into retirement.
New data from Which? shows insurance policies have become a lot more expensive for over-65s, and can double past 70 – even if you’re healthy – with travel being the worst culprit.
In shopping research, the watchdog found 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.
But there are ways to cut costs even over the age of 65. Follow these expert tips to find out how to get the best deal on your travel insurance.
Don’t stick with the same provider
“If you’re over the age of 65 and want to keep the cost of travel insurance down, it’s essential to shop around,” says James Andrews, senior personal finance editor at Money.co.uk, which has an insurance comparison tool (other useful sites include Confused.com and MoneySupermarket).
“Older travellers can sometimes stick with the insurance company they’ve used for years out of habit, but if you do, you’re likely to be paying more overall. There’s no room for brand loyalty in this situation, so compare as many deals as you can before making your decision.”
Don’t double up unnecessarily
Another common mistake is thinking you need health insurance on top of travel cover. Andrews says: “Most over-70s travel policies include medical cover as standard, so you won’t need an additional private health policy on top. When you buy your insurance, make sure you get a list of what’s covered.”
Get expert help
Depending on your circumstances, 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 Which? expert Gareth Shaw. He recommends using the British Insurance Brokers’ Association (BIBA) Find Insurance service which lists brokers by area of expertise (insurance.biba.org.uk/find-insurance/).
Compare single trip and annual policies
“Before the pandemic, one of the best ways for over-70s to keep the cost of travel insurance down was to take out annual cover, rather than paying for a single trip policy,” says Andrews.
It’s still wise to compare both options, but he warns: “Remember that if international restrictions change in the next year and borders close, you’ll end up with an annual policy you can’t use.”
Shaw advises: “Some providers will offer single trip cover to customers instead of annual cover. It’s worth looking to see what single trip policies are available. Even if you plan to cover more than one holiday, you could find it more cost effective to cover each separately than all on an annual policy.”
See if you can bag a freebie
Andrews says: “Another trick that might work is taking out a different product that includes travel insurance as part of the package. Some credit cards and paid-for bank accounts offer this. You’ll need to check the fine print to make sure you aren’t excluded by your age – and that the insurance is up to scratch, but it can work out cheaper to pay the annual fee for the card or bank account than take out a travel insurance policy on its own.”