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.
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.
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.
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).
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.
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.
Travel insurance is designed to protect you against unforeseen financial loss connected with your holiday or trip. So why choose a policy with a high excess that means you won’t be covered for those costs? It may be slightly cheaper, but you could be wishing you’d paid a bit more for a lower excess. Or better still opt for an Excess Waiver. Many policies offer an Excess Waiver for those who prefer to have no excess. So if you make a claim that is accepted, the policy will pay out the full amount with a nil Excess deduction. The cost of an Excess Waiver is usually per person. With Globelink you can waive the excess for an additional premium if you are aged under 70 and select a Single Trip Comprehensive, Annual Multi Trip, or Winter Sports policy. This means if you need to make a claim, you have the total peace of mind that no excess will be deducted from any successful claims settlement. You can simply add Excess Waiver сover as one of the additional extra options when you purchase.
Always check the level of excess on your policy. With Globelink Annual Multi Trip, Comprehensive & Winter Sports policies you can purchase Excess Waiver if you are under 70 for that total peace of mind.
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.