Travel insurance excess charges explained

If you're looking for an easy way to save on your next travel insurance policy, a higher excess usually means a lower premium. Many brands let you choose an excess anywhere between $0 to $200 (this is the "standard" excess for most policies).

How does a travel insurance excess work?

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.

Compare policies by their default excess

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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Compare 20+ brands that offer reduced excess charges

Brand	Lowest excess option	Excess Option 2	Excess Option 3	Excess Option 4	Apply
	$100	$200			Get quote
American Express	$100	$200	$500		Get quote
Tilda	$0	$100	$200		Get quote
Australia Post	$0	$100			Get quote
Budget Direct	$0	$100	$200		Get quote
Cover More	$0	$100	$250		Get quote
fastcoverfastcover	$0	$100	$500		Get quote
InsureandGo	$0	100			Get quote
	$0	$100	$250		Get quote
Online Travel	$200	$500			Get quote
	$0	$100	$250		Get quote
Tick	$0	$200			Get quote
Virgin	$0	$150	$200	$500	Get quote
Webjet	$0	$100	$500		Get quote
World Care	$200	$500			Get quote
youGo	$0	$250			Get quote
Zoom	$100	$200			Get quote

Types of travel insurance excess

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

Most 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

Some claims will actually force you to pay an additional excess depending on your insurer. As an example, you may have chosen a $100 excess for your ski travel insurance, but any ski related claims could cost you an additional excess of $100 on top of your selected excess. This means that any ski related claims will cost you an excess of $200.
Another example is the additional excess that some insurers charge seniors if they have to claim on medical expenses.

How does the excess impact the cost of travel insurance

Brand	Policy	Quote with 0 excess	Quote with $100 excess	Quote with $200 excess	Apply
1cover	Medical Only		$56.78	$46.78	Get quote
Budget Direct	Last Minute	$121.51	$71.57	$59.58	Get quote
fastcover	Basics	$68.80	$53.80	$33.90	Get quote

^{Quotes are based on 30 years old person going to Bali for 14 days. Information last checked as correct in September 2018 and is subject to change at any time.}

Benefits of comparing excesses

When you're comparing policies it's not a bad idea to glance across the comparison section and have a look at the excess options. You can use this as a way to split the decision between two similar policies. That is, if they are both offering the same level of cover for an item, opt for the option with the lower excess. Or if one policy only offers a standard excess and you're more inclined to opt for a double or nil excess option, this can serve as another differentiator.

Does an excess apply to all claims?

Every insurer is different, though you will generally have to pay an excess for claims relating to journey changes, baggage and personal items as well as cash and travel documents. Many insurers will not charge an excess for delayed luggage, loss of income, hospital cash or accidental death.

It's worth looking for an insurer that won't charge an excess for medical care. That's because it's common for GP visits and prescriptions to cost less than the excess amount, meaning you're not saving any money with a policy. It can also deter you from going to the doctor's when you're away, so avoid a high excess when it comes to medical care.
Here are some commonly claimed items and whether you will generally be expected to pay an excess when claiming on these items.

When do you have to pay your excess?

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.

Compare travel insurance brands that offer reduced excess

Travel insurance FAQs

• Q: What does travel insurance cover?

  It covers you for unexpected events, such as medical emergencies, lost or stolen belongings and travel cancellations and delays.

• Q: Can you get travel insurance if you're pregnant?

  A: Yes, normally up to the 26th week, but not for childbirth expenses, only for unexpected serious complications.

• Q: Does travel insurance cover my luggage?

  A: Yes, but you must not have left it unattended and must have taken all reasonable precautions to avoid any loss or damage.

• Q: Are you cover if you work overseas?

  A: No. Travel insurance is for leisure travel and does not cover events linked to overseas employment.

• Q: What documentation will you need to lodge a travel insurance claim?

  A: You may need medical reports, police reports and receipts, depending on the kind of claim you are making.

• Q: Can you extend your policy while you're overseas?

  A: No. You will have to purchase a new policy before the original policy expires.

• Q: When should you buy travel insurance?

  A: As soon as you’ve paid for your trip. That way you’re immediately covered for cancellations and loss of deposit.

• Q: Can you cancel your policy and get a refund?

  A: Only if it is within the two week cooling off period and you have not started your journey or made any claims.

Picture: Unsplash

Richard Laycock

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Richard Laycock is Finder's insurance editor, and has spent the last five years wrangling insurance product disclosure statements. His musings about insurance have appeared on Money Mag, Yahoo Finance, and Travel Weekly. When he’s not helping people make sense of insurance fine print, he is testing the quality of cocktails in his newfound home of New York. Richard studied Media at Macquarie University and The Missouri School of Journalism and has a Tier 1 Certification in General Advice for Life Insurance.