Over 50s refused finance and insurance because of their age

As I edge up my 40s, I’m fast becoming aware that getting older isn’t much fun. Whether it’s squinting at the small print in books or complaining about my gammy knee, I’m all about the pity party these days. Which is why I do not relish the prospect of my 50s and 60s. What’s in store, artificial hips and bifocals? What I do know is this: financial companies are likely to give me the cold shoulder. New research out today reveals that one in five over 50s are refused finance and insurance because of their age. As part of its Welcome to Life After 50 campaign, SunLife has conducted The Big 50. According to the insurer, this is the largest ever survey of people in their 50s, 60s and 70s. The results make for grim reading. Since turning 50 years old, 21 per cent of people believe they have experienced age discrimination when trying to take out insurance. The most common complaints are about travel and car insurance. One respondent told SunLife that, despite her circumstances remaining the same, once she turned 50 her travel insurance premium went up dramatically. Meanwhile, a 70-year-old man said he lost the free travel insurance perk on his current account when he turned 70, and a woman in her 70s said her car insurance premium soared when she reached 70. ‘I’ve never had an accident so think it is totally unfair, especially as I spent over 20 years training minibus drivers.’ Another lady said that despite the fact she had always had a good credit score, once she was a pensioner she was refused new credit cards. Of course, it’s not just the point-blank refusals that are a problem: price hikes are an issue. Consider motor insurance. A new study from comparethemarket.com has found that drivers aged over 50 years old have seen their premium increase by £40 over the past 12 months. That means premiums for older drivers are now, on average, £398.

According to the comparison site’s latest Premium Drivers index, the average motor insurance premium paid by drivers in the over 50s age group has risen £63 (or 19 per cent) since records began over four years ago, when the average premium for this age group cost £334.

On a purely personal level, I can attest to both SunLife’s and comparethemarket’s findings. My dad turned 70 this month. A week or so later he tried to buy an annual travel insurance policy. Admittedly he is diabetic which not only ramps up the premium but also means some insurers won’t touch him with a bargepole. Eventually directed to Diabetes UK for help, he managed to purchase a plan. It cost him nearly £400. I’m 42 and my annual travel insurance is approximately £80. So, here’s a radical proposal. The Equality Act 2010 makes it unlawful to discriminate against employees, job seekers and trainees because of age. Shouldn’t that be the same for people seeking insurance? Helen Nugent is Online Money Editor of The Spectator