Over 65s Pay Double for Travel Cover

An investigation by Money Mail has revealed that travel insurance premiums in Britain have doubled in the last year for holidaymakers over the age of 65. Some of the best known insurers on the High Street are charging these travellers hundreds of pounds more for coverage, and the cost of an annual policy has jumped from £163 to £361 in some cases.

Experts are worried that the rise in premiums will deter many elderly travellers from buying travel insurance and leave them exposed to disasters on holiday. It’s also concerning that many firms refuse to cover the elderly, as they are more likely to have health issues when travelling. This also follows insurers having to pay out large sums in recent years due to ash clouds, flooding, earthquakes and the North African political turmoil – prompting them to try to regain what they lost anyway they can.

Money Mail is sent hundreds of letters every year from travellers whose holidays haven’t ended so well. Their investigation of insurance premiums over the last year shows that insurers have been tightening what they will pay out for and quietly raising premiums.

At Direct Travel, a typically best value, policies have been tailored based on travellers’ ages. Seniors don’t have Senior Cover anymore, but they are able to take out any policy available. However, this means a couple over the age of 65 will see premiums rise to £365 as of January with Direct Travel’s Premier Plus policy for a two-week cruise. This is an 80% jumped compared to £202 last year. Meanwhile, annual coverage has risen a whopping 121%. Additionally, the company’s small print has been altered. A Direct Travel spokesman says the changes are a reflection of an increase in claims costs. Their aim is to ensure policyholders pay a premium that is comparable to the likelihood of a claim and the risks.

Esure has been making changes as well, with annual travel premiums for elderly travellers rising about 66% from £157 to £261. Annual worldwide insurance from Endsleigh has jumped nearly 50% from £117 to £173. Travel cover for a year from Swiftcover has risen 10% for all travellers, making European annual insurance for a family of four £83. Even Tesco’s prices have increased an average 15% for annual cover, while Aviva raised its prices for older couples on a cruise by 26%. Direct Line insurance has jumped 19%, and the AA has increased theirs up to 17%. Columbus charges 18% more to elderly travellers as well.

Age UK charity director Michelle Mitchell is quoted saying that the figures confirm the worst fears – elderly people will be pushed into risking going on holiday without protection or skip an overseas holiday altogether because the insurance is too costly. Which? Money editor James Daley says insurers can’t say they won’t cover the elderly due to deteriorating health, as many are much healthier than in previous years. The premium increases are difficult to justify, he added.