An investigation by Which? has revealed that insurance companies who cater specifically for over 50s are ripping off these customers, compared to regular mainstream insurers.
The consumer group compared prices for a range of financial products, with one comparison revealing a difference of £1,000 for car insurance.
Four specialist insurance companies had their car insurance premiums for drivers aged 51, 61 and 71 years compared to those offered by 10 regular, leading insurers. For each quote, the imaginary driver created by Which? wanted insurance for a BMW in Cambridge.
Castle Cover quoted a staggering £1,364 for the 71-year-old motorist, followed by Rias with a quote of £1,187, and then Age UK with a quote of £919. However, Saga’s quote was considerably lower, at £419.
On the other hand, LV= quoted just £330, and John Lewis offered it for £342, which would save the 71-year-old more than £1000 on their car insurance premium.
The other two age scenarios carried high prices from all four of the specialist insurers too.
Meanwhile, an annual home insurance policy from Saga was found to cost £437. This was approximately 35 per cent higher than Direct Line’s policy costing £286, the best deal available.
“Specialist providers targeting over-50s are often offering more expensive products, and consumers may be much better off looking beyond the specialists for the best deal,” said Which? Money Editor, Harry Rose.