Find out what a travel insurance excess is and how you should compare them here.
Fact checked
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.
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:
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.
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:
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.
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.
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.
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.
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.
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.
Disclaimer:
We do not compare all travel insurance brands currently operating in the market. Any advice presented above or on other pages is general in nature and does not consider your personal or business objectives, needs or finances. It’s always important to consider whether advice is suitable for you before purchasing an insurance policy.
Savvy earns a commission from our partners each time a customer buys a travel insurance policy via our website. We don’t arrange for products to be purchased from these brands directly, as all purchases are conducted via their websites.
Before purchasing your policy, we recommend you refer to the provider’s PDS for any further information on the terms, inclusions and exclusions.
Quantum Savvy Pty Ltd (ABN 78 660 493 194) trades as Savvy and operates as an Authorised Credit Representative 541339 of Australian Credit Licence 414426 (AFAS Group Pty Ltd, ABN 12 134 138 686). We are one of Australia’s leading financial comparison sites and have been helping Australians make savvy decisions when it comes to their money for over a decade.
We’re partnered with lenders, insurers and other financial institutions who compensate us for business initiated through our website. We earn a commission each time a customer chooses or buys a product advertised on our site, which you can find out more about here, as well as in our credit guide for asset finance. It’s also crucial to read the terms and conditions, Product Disclosure Statement (PDS) or credit guide of our partners before signing up for your chosen product. However, the compensation we receive doesn’t impact the content written and published on our website, as our writing team exercises full editorial independence.
For more information about us and how we conduct our business, you can read our privacy policy and terms of use.
© Copyright 2024 Quantum Savvy Pty Ltd T/as Savvy. All Rights Reserved.
© Copyright 2024 Quantum Savvy Pty Ltd T/as Savvy. All Rights Reserved.
Quantum Savvy Pty Ltd (ABN 78 660 493 194) trades as Savvy and operates as an Authorised Credit Representative 541339 of Australian Credit Licence 414426 (AFAS Group Pty Ltd, ABN 12 134 138 686). We are one of Australia’s leading financial comparison sites and have been helping Australians make savvy decisions when it comes to their money for over a decade.
We’re partnered with lenders, insurers and other financial institutions who compensate us for business initiated through our website. We earn a commission each time a customer chooses or buys a product advertised on our site, which you can find out more about here, as well as in our credit guide for asset finance. It’s also crucial to read the terms and conditions, Product Disclosure Statement (PDS) or credit guide of our partners before signing up for your chosen product. However, the compensation we receive doesn’t impact the content written and published on our website, as our writing team exercises full editorial independence.
For more information about us and how we conduct our business, you can read our privacy policy and terms of use.
