Customers paying a premium for ageing

Which? Money found that insurers imposed significant price increases on customers as they passed into different age brackets, with specialist travel insurance provider Rias raising premiums for an annual worldwide policy from 383 for a 74- year-old to 707 for someone who was 75.

Only five of the 98 annual worldwide travel insurance policies the group looked at would continue to offer cover to people once they were over 80.

There were also big price differences for single trip policies as consumers get older, with the cost of cover for a 15 day trip to Europe with Saga rising from 57 for a 69-year-old, to 86 for those over 70.

Older people face similar problems getting car insurance, with 60 per cent of policies not available to people aged 81 or over, while those that do offer it imposed steep premium increases.

Which? also found considerable differences between online and telephone quotes from the same companies.

Michelle Mitchell, Age UK's charity director, said: "It is absolutely outrageous that older consumers can be denied insurance or forced to pay over the odds simply because of their age.

"Refusing products to older people for this reason alone places an unacceptable restriction on their lives.

"It is incredibly short-sighted of the insurance industry to ignore the fact that people are generally living longer, healthier and more active lives."