What is Excess?

When you make a claim, the excess is usually charged per person, unless your policy wording states otherwise. In some cases, it may also apply per section of cover and per incident.

For example, if you lose a jacket that contains your wallet, your claim may be split across two sections of your policy. The jacket and wallet would fall under the Personal Possessions section, while any cash inside the wallet would be covered under the Money section. Although it is a single incident, it may result in multiple excess charges depending on how your policy is structured.

When you make a claim, the excess is usually charged per person, unless your policy wording states otherwise. In some cases, it may also apply per section of cover and per incident.

For example, if a holiday costs £450 per person and the policy excess is £250 per person, a cancellation claim for four insured travellers would total £1,800. However, the combined excess would be £1,000, reducing the pay-out to just £800. By comparison, with an excess of £100 per person, the same claim would result in a much more reassuring pay-out of £1,400.

Although policies with lower — or no — excess may come with a slightly higher premium, paying a few extra pounds upfront (often no more than the cost of a round of drinks at the airport) could save you a substantial amount should the unexpected happen and you need to claim.

Finding the right travel insurance when you have pre-existing medical conditions can often feel both time-consuming and expensive. To help keep premiums more affordable, some insurers apply an additional medical excess in the event of a claim, rather than significantly increasing the policy cost for medical conditions that are stable or well controlled.

It is important to understand that any claim relating to a declared medical condition – including cancellation, curtailment or emergency medical expenses – will usually be subject to the additional medical excess. This applies even if you have chosen a policy with a standard excess waiver or a £0 excess option.

Travel insurance is designed to protect you from unexpected financial loss if something goes wrong before or during your trip. However, when policy excesses run into the hundreds of pounds, it can sometimes feel more practical to cover smaller costs yourself rather than make a claim.

To help with this, many insurers offer an excess waiver option. For a small additional premium, you can reduce your policy excess to £0, giving you greater peace of mind should you need to make a claim.

It is worth noting that the cost of an excess waiver is often charged per person. As a result, for families or larger groups, it may sometimes be more cost effective to choose a policy that already includes no excess, rather than adding an excess waiver separately — something well worth considering when arranging your travel insurance.

Please also be aware that an excess waiver will usually only remove the standard policy excess and does not normally apply to any additional medical excesses. If you have declared pre-existing medical conditions, any applicable medical excess may still need to be deducted in the event of a related claim.

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.