A new report has revealed that pensioners are being overcharged on car and travel insurance because of their age. It discovered that elderly drivers and holidaymakers are paying hundreds of pounds more on many of the popular types of insurance cover .

The study, by consumer group Which?, found that one annual car policy cost GBP702 for a 75-year old, while the same cover jumped by 74 per cent to GBP1,224 for an 85-year old. Annual worldwide travel policies were a similar story, with one policy that cost GBP383 for a 74-year old jumping to GBP707 for someone only a year older.

The research also revealed that older drivers were increasingly being rejected for policies, with 60 per cent of car insurance policies unavailable to those aged 81 and over. In addition, of the 98 travel policies investigated, only five covered people aged 80 or over.

Peter Vicary-Smith, chief executive of Which?, said Many over-65s are getting a raw deal when it comes to arranging insurance simply because of their age. Restrictions imposed by insurers leave many people struggling to pay increased premiums just when they may need cover the most.

Michelle Mitchell, a director at Age UK, commented It is absolutely outrageous that older consumers can be denied insurance or forced to pay over the odds simply because of their age.