AARP-Endorsed Insurance May Not Be So Cheap After All

A Bloomberg investigation found that some insurance policies with the AARP stamp of approval actually cost senior citizens more, and part of that money is getting kicked back to AARP in the form of “royalties” and “fees.” Essentially, the AARP is taking a cut of your premium before passing it on to the insurer. These payments have gone from 11% of AARP’s revenue in 1999, to 43% in 2007. One man found he was paying twice the average for his car insurance. When walked into the the group’s brass and marbled headquarters, flashing his 20-year AARP card, to find out where his money was going, he was told the AARP doesn’t give tours.

AARP’s Stealth Fees Often Sting Seniors With Costlier Insurance