Travel insurance costs can more than double when you hit 66
– an unwanted birthday present

contributed by Chris Owens of the travel insurance team at moneysupermarket.com

Pensioners face paying twice the price for their travel insurance after their 66th birthday, a new survey has shown.

Research from online price comparison site moneysupermarket.com revealed that the average cost of the five cheapest annual travel insurance deals available for both European and worldwide holidays is more than double for people who are 66 than it is for those aged 65.

Annual European multi trip insurance rose by 109% from £23.79 for 65 year olds to £49.64 once an OAP turned 66. The average cost for worldwide trips also went up from £36.42 to £73.41 – a 102% hike.

There is a similar sorry story when people turn 70. European travel insurance shot up 24% from £49.64 to £61.51, while worldwide holiday insurance rose by 12% from £73.41 for 69 year olds to £82.29 for those who were 70.

Pensioners should be prepared to shop around to make sure they get the best holiday insurance deals. Even the prices provided by some of the more well known specialist senior citizens insurance companies vary quite considerably, whilst other brokers can also offer competitive deals – that is if they even cover older people, as many have particular age restrictions.

It is also worth people contacting their home, car or life insurance providers, as they might be able to sort out additional travel coverage as well. There might even be the opportunity of a discount for existing customers.

Some combined family package insurance deals can also lead to savings for pensioners planning a group holiday.

Back in July, one couple in their 80s hit the headlines after their premiums went up by more than 600% from £168 to £1,002.

"Pensioners will benefit from a number of other measures [in addition to the restored link to inflation].... The Chancellor promised to protect key benefits for older people, including winter fuel payments, free off-peak local bus travel, eye tests and prescriptions for those over the female pension age and free TV licenses for those aged over 75.

  ... the planned increase in the state pension age to 66 could start to come in as early as 2016 for me and 2020 for women.

  However, the Government is considering plans to abolish the statutory retirement age, which currently forces workers to retire at 65."

The Times, Wednesday 23 June 2010, Emergency Budget, p. 3