travel insurance excess

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What Is Excess In Travel Insurance

Published: December 18, 2023

Modified: December 28, 2023

by Kalie Scofield

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Introduction

Travel insurance is a crucial aspect of trip planning, offering financial protection and peace of mind in the face of unexpected events. However, understanding the various components of travel insurance, such as excess, is essential for making informed decisions when purchasing a policy. In this comprehensive guide, we will delve into the concept of excess in travel insurance, exploring its significance, functionality, and implications for travelers.

Excess, often referred to as a deductible in other insurance contexts, is a fundamental feature of travel insurance policies. It represents the portion of a claim that the policyholder is responsible for covering out of pocket. While the concept of excess may seem straightforward, its nuances and impact on insurance coverage merit a closer examination.

By gaining a deeper understanding of excess in travel insurance, travelers can navigate the intricacies of policy terms and conditions with confidence, ensuring that they select a plan that aligns with their unique needs and preferences. Throughout this article, we will unravel the intricacies of excess, shedding light on its mechanics, advantages, and potential drawbacks. Additionally, we will provide practical tips for effectively managing excess within the context of travel insurance, empowering travelers to make informed and strategic decisions when safeguarding their journeys.

Join us on this insightful journey as we demystify the concept of excess in travel insurance, equipping you with the knowledge and insights needed to optimize your insurance coverage and embark on your travels with confidence.

Understanding Excess in Travel Insurance

Excess in travel insurance represents the amount of money that a policyholder must contribute towards a claim before the insurance coverage comes into effect. It serves as a form of self-insurance, requiring travelers to share a portion of the financial risk with the insurer. When purchasing a travel insurance policy, individuals can typically choose the level of excess they are comfortable with, balancing higher excess amounts against lower premiums.

It is important to note that excess applies to each separate claim made, meaning that if multiple claims arise from a single incident, the excess will be applicable to each claim. Understanding the implications of excess is essential for travelers, as it directly influences the out-of-pocket expenses they may incur when seeking coverage for unforeseen events during their trips.

Moreover, excess can vary based on the type of claim. For instance, some policies may have different excess amounts for medical expenses, trip cancellations, or baggage loss. This nuanced approach underscores the importance of carefully reviewing policy details to ascertain the specific excess conditions for different claim categories.

By comprehending the role of excess in travel insurance, individuals can make informed decisions when comparing policy options and assessing their risk tolerance. While a higher excess may result in lower premium costs, it also entails a greater financial responsibility in the event of a claim. Conversely, a lower excess may lead to higher premiums but can offer more comprehensive coverage with reduced out-of-pocket expenses at the time of a claim.

As we delve deeper into the mechanics of excess in travel insurance, we will explore how this component interacts with various aspects of insurance coverage, shedding light on its implications for travelers seeking to protect their journeys and mitigate financial risks.

How Excess Works

Understanding how excess works in the context of travel insurance is essential for travelers aiming to grasp the practical implications of this component. When a covered event occurs during a trip, such as medical treatment abroad or the need to cancel travel plans due to unforeseen circumstances, the policyholder is required to pay the excess amount before the insurance coverage takes effect.

For instance, if a travel insurance policy has an excess of $200 and the traveler incurs medical expenses totaling $1,500, the policyholder would be responsible for paying the first $200, with the insurer covering the remaining $1,300. It is important to note that the excess is deducted from the total claim amount, and the insurance coverage applies to the remaining costs, up to the policy’s specified limits and coverage terms.

It is crucial for travelers to be mindful of the excess amount specified in their insurance policies, as this factor directly impacts the financial responsibility they assume when making a claim. By carefully evaluating their risk exposure and financial capabilities, individuals can select an excess level that aligns with their preferences and budget, striking a balance between upfront costs and potential claim expenses.

Furthermore, the application of excess may vary based on the nature of the claim. Different types of incidents, such as trip cancellations, medical emergencies, or baggage loss, may have distinct excess amounts outlined in the policy. This nuanced approach underscores the importance of reviewing policy details to gain clarity on the specific excess conditions for various claim categories.

As we unravel the intricacies of how excess operates within travel insurance, we will delve into real-world scenarios and practical examples to illustrate its impact on travelers and the dynamics of insurance claims. By gaining a comprehensive understanding of how excess functions, individuals can navigate the complexities of travel insurance with confidence, ensuring that they are well-prepared to manage potential claim situations during their journeys.

Pros and Cons of Excess in Travel Insurance

Excess in travel insurance presents both advantages and considerations that travelers should carefully weigh when evaluating insurance policies. By examining the pros and cons of excess, individuals can make informed decisions that align with their unique needs and risk tolerance.

• Lower Premiums: Opting for a travel insurance policy with a higher excess can lead to reduced premium costs, making comprehensive coverage more affordable for travelers, especially those on a budget.
• Customized Coverage: The ability to choose the excess amount allows travelers to tailor their insurance policies to suit their financial preferences and risk tolerance, providing a sense of control over their coverage.
• Financial Flexibility: Incurring a higher excess in the event of a claim may be manageable for individuals with sufficient emergency funds or those willing to absorb a larger portion of the financial risk in exchange for lower ongoing insurance expenses.
• Upfront Costs: A higher excess requires travelers to allocate more funds upfront in the event of a claim, potentially impacting their immediate cash flow during an already stressful situation.
• Risk Exposure: While lower premiums may be appealing, a higher excess places a greater financial burden on the policyholder in the event of a claim, necessitating careful consideration of one’s ability to cover the excess amount when needed.
• Claim Limitations: Depending on the excess amount selected, travelers may find that certain smaller claims fall below the excess threshold, rendering them ineligible for coverage, which could impact the overall value of the insurance policy.

By weighing these factors, travelers can assess the trade-offs associated with excess in travel insurance and make informed choices that align with their financial circumstances and risk management preferences. Understanding the pros and cons of excess empowers individuals to select insurance policies that strike a balance between cost-effectiveness and comprehensive coverage, ensuring that they are adequately protected during their travels.

Tips for Managing Excess in Travel Insurance

Effectively managing excess in travel insurance is essential for travelers seeking to optimize their coverage while balancing financial considerations. By implementing strategic approaches to navigate the nuances of excess, individuals can make informed decisions and mitigate potential financial risks during their journeys.

Tip 1: Evaluate Your Risk Tolerance

Assess your comfort level with assuming financial responsibility in the event of a claim. Consider your ability to cover the excess amount and strike a balance between upfront costs and potential claim expenses based on your risk tolerance and financial circumstances.

Tip 2: Compare Excess Options

When exploring travel insurance policies, compare the excess amounts offered by different providers. Evaluate how varying excess levels impact premium costs and coverage terms to identify a balance that aligns with your preferences and budget.

Tip 3: Consider Your Travel Plans

Take into account the nature of your trip and potential risks associated with your destination. Assess the likelihood of needing to make a claim and tailor the excess amount based on the specific travel scenarios you anticipate.

Tip 4: Review Policy Inclusions

Thoroughly review the policy’s coverage inclusions and exclusions to understand how excess applies to different types of claims. Ensure that the excess amounts align with the potential expenses you may encounter during your travels.

Tip 5: Build an Emergency Fund

Consider setting aside an emergency fund to cover the excess amount in the event of a claim. Having a financial safety net can provide peace of mind and ensure that you are prepared to manage unexpected expenses without undue stress.

Tip 6: Seek Professional Advice

If you are uncertain about the appropriate excess level for your travel insurance, consider consulting with insurance professionals or financial advisors. Their expertise can help you navigate the decision-making process and select a policy that meets your needs.

By implementing these tips, travelers can proactively manage excess in their travel insurance, optimizing their coverage while aligning with their financial capabilities and risk management preferences. Strategic decision-making and thoughtful planning empower individuals to embark on their journeys with confidence, knowing that they are well-prepared to handle unexpected events while safeguarding their financial well-being.

As we conclude our exploration of excess in travel insurance, it becomes evident that this component plays a significant role in shaping the financial dynamics of insurance coverage for travelers. By understanding the intricacies of excess and its implications, individuals can make informed decisions when selecting travel insurance policies, ensuring that they strike a balance between cost-effectiveness and comprehensive protection.

Excess empowers travelers to customize their insurance coverage based on their risk tolerance and financial circumstances. The ability to choose an excess level that aligns with one’s preferences provides a sense of control and flexibility, allowing individuals to manage potential claim situations with confidence.

However, it is crucial for travelers to carefully evaluate the pros and cons of excess, weighing the trade-offs associated with higher or lower excess amounts. By doing so, individuals can align their insurance policies with their unique needs, travel plans, and budgetary considerations, optimizing their coverage while effectively managing financial risks.

Ultimately, the strategic management of excess in travel insurance involves thoughtful planning, thorough policy review, and an awareness of one’s risk exposure. By implementing the tips provided in this guide and seeking professional advice when needed, travelers can navigate the complexities of excess with confidence, ensuring that they are well-prepared to safeguard their journeys and financial well-being.

As you embark on your future travels, may this comprehensive understanding of excess in travel insurance serve as a valuable resource, empowering you to make informed decisions and embark on your journeys with peace of mind and financial security.

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Travel insurance excess.

If you’re planning a trip, you’ve probably heard of travel insurance. But did you know that many travel insurance policies come with something called an excess? In this guide, we’ll explain what travel insurance excess is, how it works, and how to choose the right policy for you.

What is Travel Insurance Excess?

Travel insurance excess is essentially the amount of money you’ll have to pay out of pocket before your travel insurance policy kicks in. It’s similar to the excess on your car insurance policy: if you’re involved in an accident and need to make a claim, you’ll have to pay the excess first before your insurer covers the rest of the costs.

For travel insurance, excess can apply to a range of different things, such as medical expenses, trip cancellations, lost or stolen luggage, and more. The amount of excess you’ll have to pay can differ depending on the policy you choose, and can range from a few hundred dollars to several thousand.

How Does Travel Insurance Excess Work?

Let’s say you’re on a trip and you slip and fall, breaking your arm. You go to a local hospital and receive medical treatment, which comes to $2,500. If your travel insurance policy has an excess of $500, you’ll have to pay that amount out of pocket first before your insurer covers the remaining $2,000.

If your policy covers multiple things, like medical expenses and trip cancellations, you’ll have to pay the excess for each separate claim you make. So if you lost your luggage and also needed medical treatment, you’d have to pay the excess for both of those claims.

How to Choose the Right Travel Insurance Policy with Excess

When it comes to choosing the right travel insurance policy with excess, there are a few things to keep in mind:

• Consider your budget: The higher the excess, the lower the premium (the amount you’ll pay for the policy). If you’re on a tight budget, a policy with a higher excess might be a good choice.
• Think about your needs: If you’re planning a high-risk trip where you’re more likely to need to make a claim, like a skiing holiday or a backpacking trip, a policy with a lower excess might be a better option.
• Check your existing insurance: Some credit cards and health insurance policies already offer some form of travel insurance coverage. Make sure you check what’s already included before you buy a separate policy.
• Read the fine print: Make sure you understand exactly what’s covered by the policy and what the excess amount is before you buy. Don’t assume that everything is covered.

Travel insurance excess can be a confusing topic, but it’s an important aspect of any travel insurance policy. By understanding what excess is, how it works, and how to choose the right policy for you, you can ensure that you’re properly covered on your next trip.

Travel Insurance Excess Explained

Tommy has over 15 years experience within the insurance industry, and his primary focus is helping travellers find the right cover for their medical conditions.

As any holiday goer knows, purchasing travel insurance after you have booked your holiday is more of a necessity than a nice to have. Travel insurance gives you the peace of mind you need to ensure that your financial investment is protected even before you have set off for the airport. It also provides you with a financial security net, which should the worst happen whilst you are away - you can rest assured that your policy will have your back.

However, when it comes to making a claim, there is one concept that can be confusing - excesses . In this comprehensive guide, you will find all the information you need to know about travel insurance excesses, ensuring that you can obtain protection on your terms and with a clear understanding of the financial implications involved.

What is a Travel Insurance Excess?

A travel insurance excess is an amount of money that policyholders are required to pay, towards a claim. It serves as a financial commitment from the policyholder to the insurance provider when claiming against your travel insurance policy. In other words, it is the portion of the claim that you will have to cover yourself.

Think of it as your stake in the insurance claim. By having to pay an excess, you're likely to only claim, when necessary, which in turn helps keep premiums lower for everyone. Additionally, the amount of the excess can often be adjusted based on your willingness to share more or less of the claim cost, affecting the premium you pay for your policy. In essence, it's a balance between the risk you're willing to accept and the premium you're willing to pay.

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How Does an Excess Work?

When you make a claim, it is important to understand that an excess may either be deducted from your final settlement or payable by you up-front. The excess is the initial portion of any claim that you are responsible for, before the insurance provider steps in.

To explain further, let us consider an example: If your policy has an excess of £100 and you submit a claim for £500, the claim settlement will be adjusted to £400 after deducting the excess amount. On the other hand, if your excess is set at £200, the claim payment will be reduced to £300, as you will be responsible for a higher portion of the claim.

Understanding the excess amount is crucial in managing your expectations and making informed decisions when it comes to insurance claims. It is also important to note that excess amounts can vary depending on the type and level of cover you have in place.

Why do Travel Insurance Providers Charge an Excess?

Primarily, insurance providers charge an excess to discourage policyholders from lodging trivial claims, as this could inflate insurance costs for everyone. The idea is that by requiring a financial contribution towards a claim, policyholders are encouraged to use greater discretion in filing claims and typically save them for significant losses.

The bottom line: the higher the excess amount, the more unlikely policyholders are to make claims for smaller losses.

Excess amounts serve to mitigate the administrative expenses linked with handling minor claims. With an excess in play, insurance providers can allocate resources more efficiently, concentrating on addressing larger claims that demand greater attention and resources.

Who Has to Pay an Excess?

Unless explicitly specified in the policy wording, the excess is typically applicable on a per-person basis and is applied to the individual(s) making the claim. This means that if you are the sole individual on the policy and intend to make a claim, you will be responsible for the excess. Similarly, if a claim is being made on a group or family policy, an excess will be applied for individuals covered by the policy and making the claim.

To illustrate, consider a scenario where four people are travelling under the same policy, with each person's holiday costing £500. In this case, the excess is set at £200 per person. Now, suppose two travelling companions decide to cancel their trip, aiming to recover as much of their holiday cost as possible. However, due to the excess, they would only receive £600 between them, as they each must pay an excess of £200.

It is also important to note that in some claims, multiple excesses may be applied. Though rare, this usually occurs when a claim is made, and multiple areas of the policy come into effect. For example, suppose an individual is in an accident resulting in injuries and subsequent loss of their camera. In that case, the applicable excesses for medical expenses and personal belongings cover will be applied.

Understanding the specifics of your policy and the applicable excesses enables you to navigate the claims process more effectively and manage your expectations accordingly.

What are the Different Types of Excess?

It is important to be aware that there are two main types of excess, found within travel insurance policies.

Standard Excess A standard excess is a set amount that your provider indicates that you must pay should you make a successful claim. This amount can vary between the different sections (personal belongings, cancellation etc.) of your policy.

Voluntary Excess In some instances, insurance providers may give you the option, to apply a voluntary excess to your policy, which can help reduce your policy premium. This is an amount, set by you, before purchase. You will be expected to pay this amount (as well as the Standard Excess) for any claim where the voluntary excess is applicable.

For example, if the standard excess is £50 and you have applied a voluntary excess of £100, you will be expected to pay £150, should your claim be successful.

Is an Excess Always Payable?

An excess is not always applicable. In some cases, you may not need to pay an excess, depending on the area of your policy you are trying to claim from.

However, it is important to note that the specific excess amount can vary between different insurance providers. Therefore, it is crucial to carefully review the policy documents of the insurance policy you intend to purchase.

To give you a general idea, the table below outlines some commonly claimed items and indicates where you might expect to encounter an excess:

How do You Pay an Excess?

So, you might be wondering, at what precise stage of making a claim does the concept of excess come into play? The answer to this can vary depending on who your insurance provider is and the section from which you are claiming.

In certain situations, you may find yourself required to pay the excess amount upfront, essentially out of your pocket, before your provider steps in to cover the remaining costs associated with your claim.

Alternatively, if your claim is successful, your insurance provider may remove the excess amount from your payout. This method ensures that the excess is dealt with in a smooth and hassle-free manner, allowing you to focus more keenly on the outcome of your claim without the need for any additional steps or unwanted delays.

Unless of course, you have an excess waiver on your policy.

What is an Excess Waiver?

Some insurance providers offer an excess waiver, eliminating the need to pay an excess when filing a successful claim. With an excess waiver included in your policy, you can be confident that you will receive the full claimed amount without any deduction for excess.

However, opting for an excess waiver may result in a higher policy premium. Despite this, the added benefit it offers can be significant—especially if it means not having to pay a large amount upfront or receiving a substantially reduced payout. It is essential to carefully evaluate your options and weigh the benefits against the cost.

Ultimately, choosing a policy with an excess waiver can provide you with comprehensive coverage and financial protection when you need it most.

Will the Excess Affect my Insurance Premium?

Excesses are additional payments incorporated into travel insurance policies to offset upfront premium costs. Put simply, selecting a higher excess can notably decrease your premium expenses.

This approach can be advantageous, especially for frequent short breaks, where the likelihood of filing a claim is relatively low. Opting for a higher excess reduces insurers' risk, thus leading to lower premiums.

However, it is crucial to consider the nature of your trip. Engaging in physical activities like winter sports increases the likelihood of needing to file a claim. In such cases, a high excess could potentially complicate matters if a claim does arise. Thus, it might be prudent to invest a bit more in a policy with a lower excess or explore policies offering voluntary excess options, allowing you to set the excess amount yourself.

By meticulously assessing your unique circumstances and weighing potential risks, you can make a more informed decision when selecting a travel insurance policy tailored to your needs.

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What Amount Should My Excess be?

This varies based on your circumstances. Suppose you are seeking specialised coverage for pre-existing medical conditions. In that case, it is worth noting that the medical cover provided in the policy may offer significantly more value than your excess. This becomes particularly beneficial if your condition is severe and demands extensive medical attention.

While evaluating the excess amount, it's crucial to ensure that you're getting value for your investment when making a claim. However, our recommendation is to first focus on finding suitable protection that matches your specific needs before getting too caught up with concerns about the excess. By prioritising obtaining travel insurance, you can have peace of mind, knowing you're protected in case of medical emergencies or unexpected situations.

In conclusion, mastering the ins and outs of travel insurance, including excess and excess waivers, is vital for safeguarding your finances while on the move. By grasping the details of these terms, you can make well-informed choices that match your travel requirements and financial situation.

Whether you go for a higher excess to reduce premiums or select a policy with an excess waiver, the key is to strike a balance that fits your situation. Remember, travel insurance is designed to provide you with peace of mind, enabling you to explore the world confidently, knowing you're ready for the unexpected.

Thoughtful planning and wise policy selection can transform potential travel mishaps into manageable challenges on your journey.

Single Trip insurance is for one-off, individual trips and will cover your specified travel dates. This is usually up to 45 days; however, some insurance providers can cover up to 94 days. If you’re not a frequent traveller, single trip cover is a great option and will likely be cheaper than an annual multi-trip cover .

If you travel 2 or more times a year, annual trip cover may very well save you money. The maximum duration of any trip will always be specified and will vary by provider. But don't worry, when you get a quote, we'll ask you what your maximum trip length is and only show you quotes that match!

If you don't travel much then a single trip cover is perfect as you can cover specific dates suited to your trip. If you have cancellation cover, you'll also benefit from this as soon as you buy your policy.

If you travel 2 or more times a year, it may be cheaper for you to go for an annual multi-trip cover. It's best to start your annual trip cover as soon as possible, as if you have cancellation cover, you'll only benefit from this from your policy start date.

A pre-existing is any medical condition for which medical advice, diagnosis, care, or treatment was recommended or received before applying for a travel insurance policy. For some conditions, we'll need to know if they have ever been present, whilst for others if they occurred within a certain period.

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What is a Travel Insurance Excess?

Find out what a travel insurance excess is and how you should compare them here.

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When you’re shopping the market for the perfect travel insurance policy, there’s no doubt you’ll be keeping your eyes peeled for the price of your premium. However, it’s also essential to look out for the excess you have to pay if you need to make a claim. If you’re unfamiliar with how excesses work on travel insurance, you can learn more about them with Savvy.

Learn how excesses vary from provider to provider and what can influence how much you pay to make a claim. Find out the ins and outs of travel insurance excesses by comparing your options with us today.

What is a travel insurance excess?

Any claim on your domestic or international travel insurance coverage will be subject to a fixed excess, often known as a deductible. An excess is an out-of-pocket sum of money that you pay when you make a claim. This means, for example, if you incur medical expenses totalling $3, 000 while on holiday, your insurance company may need you to pay a typical excess of $200 before they reimburse you for the other $2, 800.

You do get some options when it comes to how much you can pay towards a claimable event. Travel insurance policies have different types of excesses, including:

• Standard excess: this is a value set by your insurer that you’re required to pay to make a successful claim. Standard excesses started from $100 with the maximum amount you’ll likely pay being about $500. However, certain providers won’t make you pay anything for certain claimable events.
• Voluntary excess: in place of a fixed excess, most travel insurers will allow you to choose how much you pay if you need to make a claim. This can be handy if you want to reduce how much you pay for your premium (by increasing the excess) or remove the excess altogether (by paying an extra premium).
• Extra excess: some types of coverage require you to pay an additional excess if you need to make a claim. This is often the case if you take out cover for ‘high-risk’ recreational activities, such as skiing or snowboarding. You will most likely need to pay an extra $100 to make a claim under your insurance.

If your provider requires you to pay a travel insurance excess , you will need to pay this for every insured event and each benefit you intend on claiming. For example, if you lose your luggage and make a claim, before being admitted to the hospital later on during your trip, you will need to pay two separate excesses.

Your travel insurance will pay for anything over the excess up to the claim limit for your specific event. For example, while you’re usually allowed to claim an unlimited amount for medical expenses, the maximum you’ll be able to claim for the cancellation of your trip may only be up to $50, 000.

What claims do travel insurance excesses apply to?

Not all travel insurance claims will require you to pay an excess. However, it’s handy to know what types of claimable incidents you’ll need to pay an out-of-pocket cost towards and which you won’t when you take out your travel insurance.

Some of the expenses you’ll need to pay an excess on include:

• Overseas medical costs: medical cover is one of the key benefits of purchasing travel insurance. If you need to visit a doctor or take a trip to the hospital, you will have a gap to pay if you need to claim back the expenses through your insurer.
• Evacuation or repatriation: if you’re aboard a cruise and need to abandon ship due to an accident or if you’re in a rural area and need evacuating, your insurer foots the bill for an air or road ambulance, but you will still need to pay an excess.
• Lost or stolen bags: having your luggage swiped or losing them while you’re on holiday can be a real lowlight. You must pay an excess if you want to get them repaired or replaced through your insurer.
• Cancellations: need to call off your holiday due to illness or a death in the family? You can claim back any pre-paid expenses such as flights, hotels or tours, but you’ll need to pay a deductible.
• Personal liability: the legal bills can be eye-watering if you're held personally responsible for the injury or damage to another person or their property. Your insurer can have your back in any event; however, you’ll need to pay an excess towards what you claim.
• Loss of passport or travel documents: it can be frustrating when your passport or visa documents go walkabout while you’re on a trip. Your travel insurer can arrange their replacement, but you must pay an excess.

The incidents which don’t require you to pay an excess typically include claims relating to the delay of your flight or luggage, loss of income, permanent disability or accidental death. For example, if you’re travelling to Mexico and your departing plane is delayed by more than 24 hours, your insurance company can allow you to claim for a night’s accommodation, meals and any essentials you require, such as toiletries, without paying an excess.

Should I increase or decrease my travel insurance excess?

If you want to reduce the cost of your premium, increasing your excess may be the way to go. However, if you want to reduce or remove your excess, it will save you out-of-pocket costs if you need to make a claim. Therefore, you should weigh up these considerations when purchasing travel insurance.

Remember that if you want to lower or eliminate your excess, your insurance premiums will likely increase by $30 or more. To help you choose the most affordable option, you can compare quotes with Savvy.

If you want to increase your excess, ensure the amount you choose is manageable and affordable. Suppose your luggage is stolen while on holiday in Serbia and you’ve opted for a $500 excess. If you don’t have the means to pay the excess, it could deter you from making a claim and cost you your worldly possessions.

What are some of the factors which impact the value of your excess?

If you’re a senior traveller.

Once you reach a certain age, the value of excesses tends to increase substantially. Insurers consider older travellers to be at greater risk of injury or illness while they’re on holiday. Most companies impose higher excesses on those over 85 compared to those who are over 50 , which can sometimes reach up to $2,000.

The nature of the activity

Insurance policies may provide optional coverage for high-risk recreational activities, but some providers impose an increased deductible if your claim relates to something like scuba diving or winter sports. One scenario in which you could have to pay more than your agreed-upon excess to file a claim is if you are hurt while skiing on holiday.

If you want to save money

You can usually choose to reduce your premium by increasing your excess. This is because you're offering to shell out additional cash in the event you need to make a claim on your international or domestic holiday. If you don’t need to make a claim during your travels, it’s a bonus and you would have saved some money.

The provider you choose

Much like what travel insurance covers , excesses can vary from provider to provider. In most cases, you’ll find that most insurers offer excesses between $100 and $250, though some offer higher amounts. It’s a good idea to shop around so you can find a deductible that works for you.

Frequently asked questions about travel insurance

An excess is payable when you claim your travel insurance. There’s no need to pay your excess when you purchase your policy.

Travel insurance companies usually won’t let you change your policy once you’ve departed on your holiday. However, some may allow you to cancel your existing policy for a small fee and offer you a new one if you want to increase your excess.

An excess waiver is the name of the product which allows you to remove the excess on your travel insurance policy. For example, if you pay roughly between $10 and $30 extra for a waiver, your insurer will remove your excess and you won’t need to pay one if you make a claim.

More often than not, you won’t have to pay your excess to your travel insurance company directly. Instead, your insurer will deduct your excess from any amount they intend to pay you when you make a claim.

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Excess Health Insurance: Why It’s Important If You Get Sick While Traveling

Generally, excess is something we enjoy. Like hot fudge being applied to our turtle cheesecake. Excess insurance? Not so much. Having the right amount of insurance is hassle enough.

Here’s the thing, though: Excess insurance is not a bad thing when it comes to travel medical insurance . In fact, excess travel medical insurance as included in a Generali travel protection plan is something you should definitely consider for your next vacation.

Here’s why:

Primary Health Insurance

First of all, let’s clear up the confusing language. Primary, secondary and excess all refer to the sequence in which different insurance plans pay your medical bills. Excess insurance pays after other primary or secondary insurers have covered their portion.

If you have health insurance through two different entities, like your regular health insurance and a travel plan with health coverage, the primary carrier is the one that pays or reimburses your medical bills first.

This is generally the health insurance you already have for trips to the doctor, surgeries, and so forth. However, travel insurance companies differ in how they designate their medical coverage, primary, secondary or in excess, so check before you buy.

If your health plan is primary, it doesn’t matter if you racked up charges while you were on vacation in Malaysia or Myrtle Beach; the health plan will be sent the bills first and will pay whatever its policy dictates.

That can really differ, depending on who you saw where and for what ailment. If your health plan is very specific to the region where you live, doctors in other parts of the country are likely out-of-network. And most health plans have little or no coverage for health expenses incurred overseas.

The bottom line is that if you rack up medical bills on vacation, your health plan may not pay a large portion of those expenses … but because it’s primary, it gets to make that determination first.

Also read:  Things Most People Get Wrong About Pre-Existing Medical Conditions and Travel Insurance

Excess Health Insurance

At that point, the unpaid portion of your medical bills is passed to the next insurer in the payment sequence – in this case let’s say Generali.

Generali looks at health bills differently from a health insurer. There are some things it doesn’t cover (described fully in the travel insurance documents ); if the plan terms are met and none of the expenses are on that list, Generali may reimburse you up to the limit stated in the policy.

With Generali, there are no deductibles or co-pays, network access fees or in-network/out-of-network differentials.* Medical bills can be paid to the extent of the coverage – which can be substantial. Generali’s Premium plan covers up to $250,000 per person in qualifying medical and dental expenses incurred while traveling.

Those expenses can include:

• Services of physicians and registered nurses
• Hospital charges
• Local ambulance services
• Prescription drugs and medicines

Even better, the coverage also includes expenses for therapeutic services and extends for up to one year from the date you become sick or injured during your trip, in case there are extenuating circumstances or a lengthy recovery back home.

Also read: The surprising connection beween travel and your health

Primary plus excess

You can see that excess insurance in the case of travel health insurance is actually the perfect complement to a standard health plan. Read more about how your health insurance and travel insurance can work together.

Because the two plans have to work in tandem, and because many overseas medical providers demand payment up front, it’s important to contact your primary and excess health insurers if you have a medical emergency while traveling.

After all, you probably aren’t going to know who’s going to cover what in the heat of the moment; you just need treatment. And the medical case managers associated with your travel-insurance carrier are likely going to be more experienced at all facets of international medical care and payment.

They can work with your health plan and medical providers so that you can get the care you need.

Read more about emergency medical assistance

This can be a confusing topic for many travelers. It’s natural to have questions.

You can read more about how Generali covers medical expenses in an article that answers many questions on travel health coverage.

If you still have questions, you can contact Generali customer service directly . You can also download sample plan documents to read the fine print on how medical expenses are covered.

And if all of that sounds good, you can get a travel insurance quote . It’s fast and easy, and there’s no obligation.

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What is Travel Insurance Excess?

How your travel insurance excess can affect your policy premium and claim costs.

• What Is Travel Insurance Excess

Travel Insurance Excess FAQs

• What is travel insurance excess?
• Do I have to pay the excess when I buy a policy?
• How much is an excess normally?
• Why would I pay an additional amount to remove the excess?
• How does the excess affect the price of my policy?
• How does the excess affect my claim?
• Do I have to pay the excess more than once if I make multiple claims?
• Can I increase the excess to make my policy cheaper?

Here at Fast Cover , we’ve definitely heard these questions before from travellers, and we’re sure to hear them again!

Many newer travellers, including backpackers going on their first trip usually haven’t heard of ‘Excess’ before, and if you’re a more seasoned traveller and aren’t sure of what an ‘Excess’ is — not to worry! That’s what this page is for.

It’s important to understand excess, because reducing your travel insurance excess can reduce your costs if you need to make a travel insurance claim.

What is the definition of travel insurance excess?

Travel insurance excess (also sometimes called a deductible) is the amount you may need to pay towards a claim that you make on your travel insurance policy. So you don’t have to pay the excess when you first purchase your policy – only if you have to make a claim.

Anything above that excess, up to the limit defined in the Product Disclosure Statement , can be covered by the insurer for a valid claim. The amount of your excess will be deducted from the claim pay out, so the excess is the amount of the costs that you’re responsible for.

A traveller on an overseas holiday is injured in an accident and receives a medical bill of $1,000.

If the traveller has a travel insurance policy with unlimited emergency medical and hospital expenses cover and a $200 standard excess, the traveller would receive up to $800 back once their claim was processed.

Why should I reduce my travel insurance excess?

If you have to make a claim, reducing your travel insurance excess may end up saving you some money.

For example, if you pay a small additional fee now to remove your $200 standard excess on your Fast Cover travel insurance policy and end up in a medical emergency overseas, you won’t have to pay the first $200 of that claim.

Also keep in mind that you won’t get anything back for a claim which is lower than your excess amount. Lower the excess, and lower your risk of having to pay more if you have to make one or more claims!

10 situations to reduce your travel insurance standard excess

• Cost of medication if you get sick
• A doctor’s consultation fee
• Your tablet is stolen
• Your return home is delayed due to a natural disaster
• Accidental damage to reading glasses or sunglasses
• Your Fitbit is stolen
• Your watch is stolen
• A special bracelet, necklace or ring is stolen
• Your handbag is stolen
• Your travel bag full of clothes is lost in transit

How much will my travel insurance excess be normally?

With a Fast Cover travel insurance policy, the standard level of travel insurance excess is generally $200. That means if you purchase a Comprehensive , Standard Saver , Basics , Snow Sports Plus or Multi-Trip  Frequent Traveller Saver policy, you automatically have a $200 excess unless you choose to reduce it.

Fast Cover travel insurance provides cover to Australian travellers up to the age of 89.

Medical excess payable for Fast Cover travel insurance policies*

Travel insurance excess generally varies according to four factors:

• The policy you’ve chosen
• The company you buy from
• How long your holiday is for

The automatic level of excess can vary between travel insurers, so check the travel insurer’s Product Disclosure Statement or website to find out the excess level before you choose an insurer.

How do I reduce travel insurance excess and what will it cost?

Reducing your excess is simple! It’s often an option offered when you’re purchasing your travel insurance.  You will need to pay an additional amount to do so which may vary depending on the length of your trip.

In some cases, you may not be able to reduce the level of excess. If this isn’t an option, and you’re not happy with the excess, try comparing a few different policies to see if it really is the best travel insurance option for you.

When do I pay my excess if I claim?

If you do have an excess, how you pay the excess may differ depending on the situation.

Often, it’s simply the case that the amount of excess will be deducted from any claim that’s being paid. In other cases, the travel insurer may pay the full amount of a claim, such as a large hospital bill, and require you to pay the excess upfront.

If I make multiple claims, does that mean I’ll pay multiple excess charges?

Often, an excess will apply to each claimable incident.

So if you make multiple travel insurance claims due to different emergencies while travelling overseas, the excess will apply to each of these claims.

On their holiday, a traveller had to be treated in hospital for a stomach bug which resulted in a hospital bill of a few hundred dollars. The traveller made an online claim and was reimbursed for the total amount of the hospital fees minus the excess they kept on their policy, which was $200.

Later on during the same holiday, the traveller’s bag is stolen along with their laptop, passport, wallet and camera inside it.

Because this is a separate incident to the stay in hospital, the traveller has to make another claim which is also subject to a separate $200 excess.

Can I increase my excess?

With some travel insurers, you can increase your excess. This will allow you to reduce the cost of your travel insurance policy premium.

If you increase the excess, you’ll be taking on the risk of having to pay more should you have to make a claim for something that’s covered by your insurance; for example:

• Becoming sick and needing to see a doctor or go to hospital
• Breaking or fracturing a bone, being involved in a serious accident, and requiring medical care in hospital and an ambulance to take you there
• Having your iPhone, camera, or other belongings lost, stolen or damaged
• Making an unexpected early return home after a relative becomes sick or injured
• Or another claimable incident to which an excess applies.

The trick is to make sure you don’t increase your excess to the point where, if you had to pay that amount to cover a travel insurance claim, you’d be in some financial trouble.

Can I change my excess after I have purchased my travel insurance?

You can reduce your excess after you’ve purchased your policy, provided you have not yet departed for your holiday.

The reduced excess would come into effect at the time of the upgrade and only apply to claimable events that have not yet occurred. The original excess amount payable would apply for any claimable event that occurred prior to the excess reduction upgrade.

In most cases, you can’t increase your excess and get a refund for the additional amount you had paid for the excess reduction after you’ve purchased your policy, unless it’s within the 25 day cooling off period and you have not yet departed for your trip.

Finding the right travel insurance policy and level of excess for you

It's a good idea to compare a few travel insurance policies before you purchase one by looking through the insurer’s Product Disclosure Statement.

This will also be the place to find information about travel insurance excess, and may include the amount that will be applied to your policy and how you might reduce or increase it.

*For more information and terms and conditions, refer to the Fast Cover   Product Disclosure Statement .

About the author

Laura is a content writer at Fast Cover. Fuelled by a passion for adventure travel and inspired to learn more about the world, she specialises in writing about travel insurance and health topics which are published across numerous travel forums and websites.

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About travel insurance excess

With Travel with Jane, claims excess applies per event and not per item. So you aren’t stung with multiple excess deductions if you find yourself in a serious travel emergency.

What is excess?

Excess is the amount you pay if you need to lodge a claim on your policy. It’s a way of placing a portion of the risk on you and also stops you from making claims for small expenses.Like all travel insurance companies, we charge an excess on most travel insurance claims. However, with Travel with Jane, your excess applies per event and not per individual claim item, meaning your excess is capped if your claim relates to one specific event.

How much is it?

Our standard policy excess is $100 AUD. This is the amount you’ll be charged for each claim, per person and per event.

How is excess paid?

The applicable excess is deducted from any claim payment we make to you. Once your claim has been speedily processed and approved by our customer support team, we’ll deduct the excess amount from your claim pay out.

Can I buy out or reduce excess?

No. A standard excess of $100 applies per event claimed.

Does excess apply per benefit or per event?

Our excess deduction is applicable per related event, per person. For example

You become seriously ill during your trip and need to return home early. As a claim, we’re looking at both trip cancellation costs and medical costs. As these expenses are related to your medical condition, we’ll treat the claim as one event. Only one excess of $100 will apply as all expenses relate to the one incident. Your handbag is stolen at a train station. Later that day, you accidentally slip and break your arm. These are two seperate, unrelated events. An excess of $100 would apply to each event, so that’s a deduction of $200. You injure yourself while surfing and need stitching up at a hospital. Days later, your injury is infected and you need follow up treatment. As both expenses are part of the same event, excess will only be deducted once.

Does excess apply on all benefits?

Excess applies to most but not all benefits. To see which events attract excess, see the Summary of Cover in the Product Disclosure Statement. Excess does not typically apply to claims about:

• Passport replacement costs
• Essentials you buy due to your carrier losing your bags for more than 12 hours

Do you need to make a claim now?

If you are overseas or back home in Australia and wish to make a claim that does not need an immediate, emergency response,  the easiest way is to claim online .

Or, you can call +61 2 9159 6649   from anywhere in the world or email [email protected].  We also offer a live chat service during business hours. Click the help icon at the bottom of your screen. 

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How to file a police report for a travel insurance claim

Stress less with insurance claims hacks

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What Does the Excess Mean on Travel Insurance?

13 May 2019 by Olga Brighton

Just in time for your summer holidays, here’s your guide to travel insurance excess . You always wanted to know what does excess mean in travel insurance, but were afraid to ask.

What is an Excess?

Like many other types of insurance, such as motor insurance or home insurance, your travel insurance usually comes with a specified excess amount. This is the amount that you will see deducted from your claim before it’s settled. In other words, if you make a claim on your travel insurance policy , the excess is the sum that the insurance company will deducted before they pay out. The excess is also sometimes referred to as a deductible.

How Does the Excess Work?

Most travel insurance policies have different excesses. These will usually vary per Policy Section. For example, the Medical Expenses Section may have a different level of excess to the Baggage Section, so check to ensure you are happy with the excess levels throughout your chosen policy before you buy. The way the excess works is as follows: if you make a successful claim for £300 and your policy excess is £50, you will receive £250, because you are responsible for the first £50 - which is your excess.

Who Pays the Excess?

Travel insurance excess is usually applied per person, per claim, unless stated otherwise in the policy. So everyone named on the policy will have their own excess applied. There may be a limit placed on the amount you are required to pay if there are several of you on one policy for one incident (eg: family cover).

Will the Excess Affect My Insurance Premium?

In short, it probably will. But when buying travel insurance, we suggest you look beyond the headlines and do your research. The cheapest policy may look great at first glance, but watch out for higher excess levels. If you have a claim this could cost you twice, or three times more than the next policy which may only cost you slightly more.

Read also: What’s Most Important to You When Buying Travel Insurance?

Why Is it Important to Know Your Excess Levels?

It's important to know your excess levels per Section so you can make an informed decision about whether it’s the right travel insurance for you. Remember: the excess amount will not be paid in the event of a claim so you may be out of pocket after a theft or loss while away, or even before you travel. For example, if your long awaited holiday costs £500 per person and the excess on your bargain-bucket travel insurance is £200, you can only hope to get £300 back, at most, per person, if you have to cancel your trip. Spending slightly more on your insurance in the first place (probably less than you’ll spend on snacks at the airport), could save you a fortune.

Do I Need Excess Waiver?

Purchasing Excess Waiver is a good idea if you wish to avoid any excess deductions in the event that you make a claim. It provides the reassurance that you will be fully compensated should any unforeseen mishap occur and you need to claim on your travel insurance policy.

Excess Waiver is usually pretty inexpensive so it’s always worth considering.

Wherever you buy your travel insurance, be sure to read beyond the highlights to check its the right cover for you and the trip you are taking.

Read also: When Will Travel Insurance Cancellation Cover Pay Out?

Can You Get Travel Insurance When You're Already Abroad?

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What is Excess?

Similar to a car or home insurance policy, your travel insurance may also have an excess., an excess is the agreed amount of money you will pay towards a claim on a travel insurance policy and can be referred to as a ‘deductible’. once the excess has been settled your travel insurance provider will then pay the remaining expenses up to the limit of cover. for example, if you submit a claim for £400 and your excess is £100 then the claim payment will be £300., who has to pay an excess.

When making a claim the excess is generally per person unless stated otherwise in your policy wording. You may also find with some travel insurance policies the excess will need to be paid per section and per incident too.

For example, if you lose your jacket with your wallet in it, your claim would be divided into two parts, one under the Personal Possessions section of the policy for the jacket and wallet, and another under the Money section for any cash that might have been in your wallet. One incident, but two sections of the policy involved

Will an excess affect my insurance premium?

When purchasing your travel insurance, we advise you to do your research when it comes to selecting a policy with an excess. Although the cheapest policy may be more appealing, in the event of a claim you could be paying double, even triple the premium in excess costs!

For example, if the cost of the holiday is £450 per person and the excess is set at £250 per person and four people insured on the policy claimed for cancellation, the total claim would be £1800 with an excess to pay of £1000 meaning the claim payment would only be £800. However, if your excess was £100 per person, the claim payment would be a more satisfying £1400.

Granted a policy with lower or no excess may have a higher premium, but spending a few extra pounds now (roughly the equivalent of a round of drinks at the airport) could save you money should the worst happen.

What happens when an additional excess is applied?

Finding the right travel insurance when you have medical conditions can be time consuming and costly. In order to keep the price low, many travel insurance companies will implement a medical excess to be paid in the event of a claim – rather than charging you for a medical condition that is well controlled.

It is important to note any claim related to existing medical conditions, be it cancellation, curtailment or medical treatment, will require the medical excess to be paid – regardless of excess waivers or £0 excess policies.

What is an excess waiver?

Travel insurance is there to protect you from financial loss should the worst happen, but with some excesses set in the hundreds it can be more cost effective to pay the expenses yourself rather than making a claim on your travel insurance.

With this in mind, many policies offer an excess waiver for those who would prefer to pay no excess. For a small additional premium, the policy excess can be set to £0 – giving you peace of mind should you find yourself needing to make a claim on your insurance.

Beware, the cost of an excess waiver is usually per person, therefore, it may be more cost effective to purchase a policy with no excess rather than applying an excess waiver – something worth remembering when purchasing your travel insurance!

How does an excess affect my claims?

Depending on the travel insurer, you will either be required to pay the relevant excess before a claim is paid out or the excess will be deducted from the amount and the remainder paid by the insurer.

In some cases, a travel insurance claim can be rejected due to the excess not being paid so it is worth checking your policy wording to ensure you are aware of when to pay your excess.

Although we have mentioned several providers, please make sure you check the policy wording carefully to ensure the cover is suitable for your individual needs.

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Define “excess” in regard to travel insurance

Knowing everything there is to know about travel insurance is tough even for the most seasoned travelers. Many people don’t know their policies all that well. In fact, most people don’t even read the terms and conditions. When certain terms are used, some people get confused because they don’t understand the meaning of those terms. When you come across the word “excess” in a travel insurance policy, you will discover it’s a little more complicated than its definition in a standard dictionary.

What exactly is “excess” in relation to travel insurance? Basically, excess is the part of a travel insurance policy you agree to pay. The insurance company that you are insured with covers the remaining costs up to the limit of your coverage. This applies to the submission of claims. Instead of the company insuring you for the amount of your coverage and then you having to pay the rest, it’s the opposite. You pay a set amount, say $500, and if the claim is for more, the insurance company covers the rest up to the maximum amount of coverage.

That may seem backwards, but it offers a huge perk: very low premiums. Since accidents are usually rare, this option can be a great investment. You spend less money on premiums with a policy that includes excess if nothing does happen.

All types of insurance policies – not just travel insurance – can include excess, so no matter what type of policy you choose, you will have to pay excess on the policy. This way, it should have little impact on the type of policy you actually need. For single trip insurance, which covers only a single trip, it’s very low-risk. Single trips are usually short so the risk of accident is much lower.

When it comes to annual trip travel insurance, the risk is still quite low. Annual trip insurance is usually used by business people because it covers multiple trips per year; it is also popular with frequent holiday travelers. These policies tend to have some restrictions when it comes to travel days and number of trips, but it’s very convenient for most travelers.

Long stay travel insurance is obtained when people anywhere from 3 to 18 months. Excess can come in handy here because the premiums are very low. If you’re going to be paying for insurance for 18 months, you want to get the premiums as low as possible.

Excess is even included in medical travel insurance, cruise travel insurance, car rental insurance, and fight accident insurance. There are policies that don’t include excess, but the practice is becoming more and more common because it’s really the best option for some people.

While it may sound risky on the outside, excess is actually a really good option for people who are looking for low premiums. In the event that something serious does happen, the excess amount is usually nothing compared to the amount the insurance company will cover, so it’s not that much of a risk.

DamianTysdal

Damian Tysdal is the founder of CoverTrip, and is a licensed agent for travel insurance (MA 1883287). He believes travel insurance should be easier to understand, and started the first travel insurance blog in 2006.

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Travel insurance excess

A travel insurance excess is something you need to pay when you make a claim and is typically charged by all providers in australia..

In this guide

How does a travel insurance excess work?

Compare policies by their default excess, compare your travel insurance quotes, types of travel insurance excess, when do you have to pay your excess, travel insurance faqs.

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What you need to know

• A travel insurance excess is the amount you agree to pay an insurer if you make a claim.
• Many brands let you choose an excess anywhere between $0 to $200 (this is the "standard" excess for most policies).
• The higher the excess, the lower your your premium tends to be (e.g. cost of your policy).

A travel insurance excess is the amount you agree to pay an insurer if you end up claiming on your policy. Take for example, a travel insurance policy for a week in Bali. The same policy could cost you $60 with a $200 excess, $72 with a $100 excess or $108 with a $0 excess. As you can see, choosing a higher excess can save quite a bit.

That's the good news. The bad news is that you'd have to pay that amount before you could claim anything. Say you lose your phone that's worth $500 and you have a $200 excess. Once your insurer approves your claim, you'll have to pay the excess amount, which means you'd only get $300 back. Another potential shortfall of this option is for lower value claims, where the claim amount would end up being comparable to that of the payable excess.

Choosing the higher excess option is slightly riskier if you end up needing to claim but if you're just looking to save some coin in the short term, it's not a bad way to go.

When calculating your travel insurance quote , Finder uses the travel insurers default excess option, which means you can sort your results from lowest to highest excess option.

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Note: This information was last updated August 2023

Standard excess

A standard excess is the set amount stipulated by the insurer that you must pay if you make a successful claim.

Voluntary excess

Many insurers will give you an option to select the excess amount on your policy. The price of your premium (policy) will change depending on which excess amount you select. As mentioned earlier, the higher your excess, the cheaper your premium.

Additional excess

This isn't as common but can apply to certain benefits – for example, ski-related claims.

How and when you pay an excess will depend on the policy and the insurer. Some insurers require you to pay the excess upfront before they will pay the claim, while others will simply deduct the amount of the excess and pay out the remainder of the benefit.

Does multiple claims mean multiple excess charges?

Claiming on multiple sections of the policy does not generally mean you will pay multiple excesses. Most of the time you're charged one excess for an event even if you are claiming on multiple benefits.

The same goes if you're claiming on a family policy, even if that event impacts multiple travellers such as both parents and children; you'll only pay the excess once.

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What is the excess on a travel policy?

The excess is the amount that you need to pay towards a claim. For example, if you make a claim of $1,000 and the excess is $200, you will receive $800.

Should you get excess on travel insurance?

It's very uncommon for travel insurers to offer a no-excess travel insurance policy, so you will need to pay one in the majority of cases. However, you are often able to lower your excess to $50 or $100. This will increase your premiums but mean you are less out of pocket if you do need to claim.

What should my excess be for travel insurance?

The most common excess charge is around $200. However, some insurers allow you to lower it to around $50 or raise it as high as $500.

How do I reduce my excess?

Our quoting tool automatically applies the default excess given by the insurer. After you've chosen your policy and clicked 'Go to site', you can adjust your excess directly with the travel insurer. If you choose to lower or remove your excess, you'll probably pay more for your premium.

Gary Ross Hunter

Gary Ross Hunter is an editor at Finder, specialising in insurance. He’s been writing about life, travel, home, car, pet and health insurance for over 6 years and regularly appears as an insurance expert in publications including The Sydney Morning Herald, The Guardian and news.com.au. Gary holds a Kaplan Tier 2 General Advice General Insurance certification which meets the requirements of ASIC Regulatory Guide 146 (RG146).

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4 Responses

Hotel in Menorca lost 2 adults 2 children’s passports, insurance company are paying for replacement passports etc but have said our excess is £100 per person. The certificate from travel agents only says excess £100, no policy booklet was given as Thomson’s didn’t have any in stock. I believe it has been mis-sold as I was unaware of excess being per person.

Thanks for reaching out.

I’m sorry to hear about this mishap. I’m afraid we cannot check this information for you as we do not have the insurance details. You may want to contact the insurance company and ask for the policy booklet so you can ascertain the excess charging.

It’s a good idea to always check the features and details of the policy, as well as the relevant Product Disclosure Statement and if necessary, reach out to the insurance company before buying an insurance.

Kind regards, Liezl

I asked Google, “why do we have to pay an excess on our Travel Insurance”. I got this page as an result ( https://www.finder.com.au/travel-insurance-excess ). It explains how an excess works. Any Dip-Stick knows how it works, Derrr. I asked why do we have to pay it. If you insure something. It should replace the total value of what is insured. I accept depreciation. But why do we have to pay an excess. It Google that led me here. Not finder.com.au. So shows you how bright google is. Not very. So why do we have to pay an excess. Seems a SCAM to me. That everyone accepts.

Thanks for your question.

When you buy travel insurance with an excess option, you are assuming a part of the risk on behalf of the insurer in return for a lower premium. There are travel insurance brands out there that offer zero excess options but this means you are paying more upfront. If you wish to check your options, here’s a list of insurers offering excess reduction travel insurance .

I hope this was helpful, Richard

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Travel Insurance

Spring offer

20% off new Annual Multi Trip policies when you buy direct from us.

Offer ends 30/04/24. Excludes Later Life cover and add-ons. See additional info below.

Learn more about our policies and get a quote to cover you for things like medical expenses, cancelling or cutting your trip short and baggage or valuables.

Tesco Bank Travel Insurance is arranged and administered by Rock Insurance Services Limited and underwritten by Inter Partner Assistance S.A.

The power to get holiday cover for less

Clubcard members get a 10% discount when you buy direct. Discount doesn’t apply to Later Life cover or add-ons. Just enter your Clubcard number when you get your quote.

If you buy an Annual Multi Trip policy with our Spring offer, your Clubcard member discount will be applied after the 20% discount is applied.

Travel Insurance you can trust

• Choose from Economy or our 5 Star Defaqto rated Standard and Premier cover Single and Annual Multi Trip policies. Choose from Economy or our 5 Star Defaqto rated Standard and Premier cover Single and Annual Multi Trip policies.
• Cover for medical expenses and 24/7 Emergency Medical Assistance is provided with all our cover levels. Monetary limits, excesses and exclusions apply. Cover for medical expenses and 24/7 Emergency Medical Assistance is provided with all our cover levels. Monetary limits, excesses and exclusions apply.

Standard and Premier cover

Types of trip cover

Single trip.

Only plan on one holiday in the next 12 months? Buy cover for the length of your trip only and have protection from cancellation from the moment you buy.

Annual Multi Trip

If you plan on taking two or more trips in the next 12 months, Annual Multi Trip cover can offer greater convenience than Single Trip cover. 20% off when you buy a new Annual Multi Trip policy direct from us by 30/04/24. Excludes Later Life cover and add-ons . See additional info below

Designed for longer trips abroad up to 18 months, often to multiple countries. You may find this type of cover is right for you if you’re planning a gap year or career break.

Get access to a doctor virtually

Available with our Single Trip and Annual Multi Trip policies, choose Premier cover and you'll have access to an English speaking GP on the phone or via an app. This comes as standard for our Backpacker and Later Life products.

COVID-19 cover includes

• If you have to cancel or cut short your trip as a result of contracting COVID-19. If you have to cancel or cut short your trip as a result of contracting COVID-19.
• Medical treatment if you contract COVID-19 abroad. Medical treatment if you contract COVID-19 abroad.
• If you’ve got to return home early because the region you’re in goes into lockdown. If you’ve got to return home early because the region you’re in goes into lockdown.

Remember to check the latest Foreign, Commonwealth & Development Office (FCDO) and local authorities travel advice before you go. We don't include cover for cancellation where the FCDO or local authorities advise against travel. For full details of the COVID-19 cover provided on our policies take a look at the policy booklets . Monetary limits, excesses and exclusions apply.

Quick answers to common questions

Getting set up

Just applied for Travel Insurance? Here's what you might need to get started.

Managing your policy

Some of our commonly asked questions about Travel Insurance.

Something's not right

Not sure about something on your policy? We're here to help.

Getting started with holiday cover

Travel insurance glossary and jargon buster

Do I need travel insurance?

What it covers and why it might be handy to have it

What type of travel insurance should I get?

Some key things you might need to know when picking a policy

Help for existing customers

If you’re an existing customer you can find information, ways to get in touch with us or start a claim here.

Important information

It’s important that you review the full policy document for your Travel Insurance policy. It contains details of cover, exclusions and limitations of your travel insurance. Monetary limits and excesses apply.

If you purchased or renewed your Travel Insurance policy on or after 13 December 2023, your policy documents are below.

If you purchased or renewed your Travel Insurance policy before 13 December 2023, your policy documents are below.

The Insurance Product Information Documents summarise the key features, benefits and exclusions of cover.

The Insurance Product Information Documents summarise the key features, benefits and exclusions of our additional cover.

Gadget Cover Documents

If you purchased or renewed your policy on or after 13 December 2023, your policy document is below.

If you purchased or renewed your policy before 13 December 2023, your policy document is below.

Car Hire Document

How we collect and use your personal data.

Tesco Personal Finance PLC (trading as Tesco Bank) acts as an intermediary for this policy. Tesco Bank Travel Insurance is arranged and administered by Rock Insurance Services Limited and underwritten by Inter Partner Assistance S.A. Gadget Cover is underwritten by AmTrust Europe Limited (AmTrust). You can find out more about how ROCK will process and share your data in their Privacy Notice.

ROCK will share some of your information with Tesco Bank as set out in their privacy notice and you can find out more about how Tesco Bank will then process that data in our Privacy Policy .

ROCK will also share data with IPA UK so that they can underwrite your policy and if you make a claim. You can find out more about how IPA UK will process your data in the ‘Data Protection Notice and Fraud’ section of the Policy Wording document and by visiting the AXA Assistance website and AmTrust Europe website.

Discount does not apply if you purchase through a price comparison website.