WIREDGOV

Older people still face discrimination when they try to buy car insurance – despite a Government agreement aimed at combating the problem, new research by Age UK has revealed.

Previously the Government and the insurance industry agreed that insurers will ‘signpost’ customers who are turned down because of their age – by referring them on to an insurance broker or another provider who might be able to offer coverage.

However, according to the mystery shopping survey conducted by GfK Mystery Shopping on behalf of Age UK, 21% of people aged 80 or above are not given phone or online quotes for motor insurance because of their age. A further 85% of those are not directed on.

Age UK believes that these results prove the new “signposting” agreement introduced in April 2012 by the Association of British Insurers (ABI) does not seem to work effectively.

The findings suggest that thousands of older people are being denied the right to drive and deprived of their independence, purely on the basis of age rather than actual risk.

Furthermore, the financial services industry is exempt from recent legislation banning age discrimination in goods and services which comes into force today.

As a result, age discrimination in insurance and other financial services is legally permitted to continue.

Gordon Morris, Managing Director of Age UK Enterprises commented: “At Age UK Enterprises, our thirty years of experience have taught us that it is feasible to provide successful insurance products to the market without upper age limits or any hidden charges.

“Having access to more products like this is crucial for many older consumers but unfortunately our survey has found that many older customers still struggle to find appropriate car insurance – this indicates that the signposting agreement doesn’t work.”

Age UK’s mystery shopping research involved 205 older people aged 60 and over shopping for phone or online quotes from 39 leading insurance companies.