# FAQs – What is a travel insurance excess?

It is essential to understand how much excess you will be responsible for before you purchase a travel insurance policy. Excess amounts can vary widely depending on the policy and the insurer you choose. Some policies have no excess, while others may have a high excess of several hundred dollars.
For example, imagine that you have a policy with no excess, and you accidentally break your phone while traveling. If the cost of repair is $100, you could make a claim and receive the full amount from the insurance company. This would be expensive for the insurer, and they would have to increase premiums to cover the cost of these small claims.
When choosing a travel insurance policy, it’s essential to consider the excess amount carefully. A policy with a high excess may have lower premiums, but it may not be worth it if you end up having to pay a significant amount out of pocket in the event of a claim.
While excess and deductible are similar concepts, they are not the same thing. Excess is the portion of the claim that the policyholder is responsible for, while the deductible is the portion of the loss that the policyholder is responsible for before the insurance policy kicks in.
While some policies require policyholders to pay the excess amount upfront, others deduct it from the claim amount. For example, if you have a claim for $1,000, and the excess on your policy is $100, the insurance company will pay $900, and you will not be required to pay anything upfront.

Travel insurance excess is an additional amount that policyholders may have to pay out of pocket if they make a claim on their travel insurance policy. In this introduction, we will discuss what travel insurance excess is, how it works, and why it’s important to understand the terms and conditions of your insurance policy.

What does the term ‘travel insurance excess’ mean?

Travel insurance excess refers to the amount of money that you, as the policyholder, will have to pay out of pocket for any claim that you make on your travel insurance policy. This amount is predetermined and is typically stated in the policy document. It is also known as the ‘deductible.’

How does travel insurance excess work?

If you have a travel insurance policy and you make a claim, your insurer will deduct the excess amount from the total payout. For instance, if you make a claim for lost luggage and the total amount due is $1,000, but your excess is $100, your insurer will pay out $900, and you will be responsible for the remaining $100.

Do all travel insurance policies have an excess?

Not all travel insurance policies have an excess. Some policies offer zero excess policies, which means that you won’t have to pay anything out of pocket if you make a claim. However, these policies may come with other restrictions or higher premiums.

How can I avoid paying the travel insurance excess?

You cannot avoid paying the travel insurance excess if you need to make a claim. It is a standard policy condition, and you agreed to it when you purchased the policy. However, you may be able to lower your excess by paying a higher premium. Some insurers offer excess waiver options for an additional fee.

How can I find out the amount of the travel insurance excess?

The amount of the travel insurance excess is stated in your policy document. You should read your policy carefully to understand how much you will have to pay out of pocket in case you need to make a claim. If you have any questions, you should contact your insurer or broker for clarification.

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