Holidaymakers who are older or have medical conditions can end up paying several times the amounts that some others would pay for insurance, or face being priced out of travelling altogether, according to Which? research.
The consumer group commissioned a survey of more than 4,000 people who had taken out an annual travel insurance policy in the past two years.
It found the median average price paid for those declaring medical conditions was 56% or £54 more than those without medical conditions.
People with medical conditions paid £150 on average while those without paid around £96, the survey indicated.
Age is also a factor when it comes to paying higher premiums, with hikes particularly seen for travellers 75 or older, even if they are in good health, Which? said.
The median average price paid for annual cover by those aged 75 or older was £300 – 65% (or £118) higher compared with customers aged 65 to 74 (£182), and more than double the amount paid by those aged 55 to 64 (£142).
Older travellers who also have medical conditions could see their premiums bumped higher still.
Measures are in place to help “signpost” people to specialist travel insurers.
Six in 10 (61%) people surveyed for Which? had a pre-existing medical condition or a history of one – and within this group, more than a third (36%) said that in the past three years, they had encountered problems buying travel insurance because of their conditions.
Of those with medical conditions, one-fifth (21%) said their medical conditions meant premiums were affordable but very expensive, while just under one in 10 (8%) said if they disclosed their medical conditions, they were offered insurance, but not at prices they could afford.
Which? said 7% had skipped buying insurance because of the high costs, leaving them without crucial protections should things go wrong while away.
Of the customers in Which?’s survey who had claimed within the past two years, more than a third (36%) had their claim rejected, disputed or only paid in part.
The Financial Conduct Authority (FCA) will introduce a new consumer duty this summer, which will set higher and clearer standards of consumer protection across financial services and requires firms to put their customers’ needs first.
Jenny Ross, editor of Which? Money, said: “It’s really concerning that travellers with medical conditions still routinely face barriers to finding the right cover for their holidays.
“Our research has found that awareness of the specialist directories is too low among those who could benefit from them, meaning some travellers could either assume they can’t get cover, decide not to disclose their condition due to price concerns or disclose them and end up paying more than they should.
“The FCA’s new consumer duty must mean that insurance firms improve the visibility of their signposting, and be clearer with customers about how their cover could be limited as a result of their pre-existing conditions.
“The regulator must be ready to take action against firms not following the rules.”
