Let’s be honest, buying travel insurance isn’t the most thrilling part of planning a holiday. But if something goes wrong while you’re away (lost luggage, a trip to A&E, or a cancelled flight), it suddenly becomes very important.
One term that often catches many people off guard is travel insurance excess. It might sound like insurance jargon, but understanding it can make a big difference to how much you end up paying if you ever need to make a claim.
Let’s break it down.
So, What Is Travel Insurance Excess?
Travel insurance excess is the amount you agree to pay yourself if you make a claim on your policy.
It works like this: when you make a valid claim, the insurer deducts the excess from the amount they pay you. You pay the first bit of the cost, and they cover the rest, up to your policy limits.
The excess is usually a fixed amount, and it can vary quite a bit, typically between £50 and £500, depending on the provider and the level of cover you’ve chosen.
How Does Travel Insurance Excess Work?
Let’s say Reece heads off on a skiing holiday in the French Alps. Sounds great, until he falls and breaks his wrist… not so great.
Thankfully, he’s taken out a travel insurance policy with a £150 medical excess.
Here’s how the claim plays out:
- Total medical bill: £1,200
- Travel insurance excess: £150
- Reece pays: £150
- Insurer covers: £1,050
Now, if the medical bill had only been £100, Reece would have had to cover the full amount himself, as it’s under the excess threshold.
So in a nutshell: if your claim is less than the excess, you won’t get anything back. If it’s more, your insurer pays the difference, after deducting the excess.
What You Need To Know About Travel Insurance Excess
Before you buy a travel insurance policy, it’s worth understanding how the excess works so you can avoid surprises later on.
- Higher Excess = Lower Premiums
Choosing a higher excess usually means you’ll pay less for the policy upfront. It’s a trade-off – lower premiums, but potentially higher costs if you need to claim. Just make sure you can afford the excess if something goes wrong.
- It’s Usually Applied Per Claim
Most policies apply the excess per claim, not per policy. That means if you have more than one issue on the same trip, like a stolen phone and a medical emergency, you might have to pay the excess twice.
- It Only Applies to Valid Claims
You only pay the excess if your claim is accepted under the terms of the policy. So if the event isn’t covered in the first place, you won’t be able to claim, regardless of the excess amount.
- Compare Excess Levels When Choosing a Policy
Two travel insurance policies might look similar in terms of cover, but the excess amounts can vary hugely. A cheaper premium might come with a £500 excess, while another costs a little more but only has a £100 excess. It’s worth comparing both.
So, Before You Jet Off…
Make sure you understand how travel insurance excess works so you can make a smarter decision when it comes to choosing your policy.
It’s not just about getting the cheapest deal, it’s about knowing what you’ll need to pay if the unexpected happens. Whether you’re heading off on a city break or a round-the-world adventure, the right excess can give you peace of mind and save you money.
So, next time you’re buying travel insurance, take a minute to check the excess.
