Understanding Your Travel Insurance Excess: What It Means and How It Works

Buying travel insurance is one of those tasks most of us do quickly, often without looking too closely at the details. But one part of a policy that’s worth taking a moment to understand is the excess. It’s mentioned throughout your cover, and it plays an important role when you make a claim.

Lately, there has been some confusion in the press about travel insurance excess particularly with claims that travel insurance policies won’t even cover your lost luggage.

If you’ve ever wondered “What does an excess mean in travel insurance?” and “How does excess work?”, this blog is for you. Here, we break it down in clear, everyday language to help you feel confident about what travel insurance excess means for you.

What Is an Excess?

If you’ve ever been confused by the term or wondered what the travel insurance excess actually means, in simple terms:

It’s the amount you're insuring yourself, if you make a claim. Everything above that amount, the insurer looks after – up to your policy limits.

For example, if you claim for £650 and your excess is £100, the insurer will usually settle £550 (assuming there is no policy limit). You’re covering yourself for the first £100, and the insurer pays the rest.

It’s not a penalty and it doesn’t mean your claim wasn’t valid — it’s simply your contribution towards the cost of the claim.

Many people are surprised to find that excesses vary depending on the type of claim. For example, the excess might be different for medical expenses than it is for travel delay, and some sections will have no excess at all. Your policy wording will list all these clearly.

What is the Point of an Excess (and Why It Matters)?

Excess is there for a few reasons:

• It helps keep the cost of travel insurance down by discouraging very small claims. All claims cost the insurer to investigate and process, an excess helps prevent them having to deal with lots of low value claims, allowing them to concentrate on all claims above the policy excess.
• It sets expectations, so you know what you’ll be responsible for if something goes wrong. These amounts will be deducted from your claim, so it helps you understand how the amount was arrived at.
• It helps you compare policies, as a lower excess usually means you’ll pay a little more upfront for the policy, but less if you ever claim. Many policies also have an Excess Waiver, where you can remove the excess.

Understanding your excess means you’re not left with any surprises at what can already be a stressful moment. This also helps when comparing different options, especially if you’re trying to understand the holiday insurance excess in the context of what you might pay if you ever need to claim.

Types of Excess You May See in Your Policy

Not all excesses work the same way, and they don’t always apply to every part of your cover. Here are the main types you might come across:

1.Standard Excess

This is the one most people are familiar with.

• It applies to many sections of your policy, such as cancellation or personal belongings.
• When you make a successful claim, the excess is deducted from the amount the insurer pays you.
• Some policies allow you to double your excess when you buy the policy, which may reduce the price of your cover but means you pay more if you need to claim.

A higher excess may lower the price of your travel insurance, but it also means you are responsible for a higher amount should you need to make a claim. However, choosing a lower excess usually makes the policy cost a bit more but reduces your out-of-pocket expense later.

2. Nil Excess

Some parts of a policy may have no excess at all. This is sometimes called no excess or zero excess on travel insurance.

If nil excess applies, then nothing will be deducted from your claim, and nil excess will often be applied to sections of the policy which are deemed as benefit payments. You would only need to prove that the event or situation has happened, not the loss you have incurred because of it.

Nil Excess only applies where it is specifically stated in the policy wording, for example, on Voyager Plus Travel Insurance for Hospital Stay Benefit or Mugging and Hijack.

3. Excess Waiver

If you want complete peace of mind when it comes to excesses, some policies offer an excess waiver. This is an optional extra that removes the standard excess, setting it to £0 across the sections it applies to.

You would pay a little more when buying your policy, but if something goes wrong, no amounts would be deducted from claims made.

Some travellers prefer this as it means there are no unexpected costs when it comes to the time of having to make claim, which can be a stressful time.

Can More Than One Excess Be Charged?

While it doesn’t happen often, it is possible for more than one excess to apply to a single incident. This isn’t common, but it can happen when a single incident triggers several different sections of your holiday insurance.

Here’s an example:

You’re involved in a hiking accident and later realise both your camera and cash were lost.

• Medical treatment may fall under Emergency Medical Expenses
• Your camera may fall under Baggage
• Any lost cash may fall under the Personal Money

Each of these sections has its own excess.

So, although it’s one incident, different parts of your cover come into play, and each may have its own excess. How the final amount is calculated should be set out for you, including any excesses deducted when your claim is settled.

How Does Excess Work on Travel Insurance?

Understanding excess often becomes easier when you look at real-life situations. Here are a few examples to show how it works.

Example 1: Claiming Less Than the Excess

Let’s say Vivienne needs to make a claim for £50 of stolen cash and the chosen level of cover has an excess of £100.

The claim wouldn’t be accepted in this circumstance because the amount being claimed falls under the level of the excess. This is why it’s important to know both the excess and the claim limits for each section.

Example 2: Medical Expenses on Holiday

Victor had an accident and sustained an injury on a skiing trip, and the medical bill for treatment was £1,200. For his policy, he chose a level of cover with a £150 excess.

The way the excess is applied depends on how the claim is handled:

1. Pay-and-claim: Victor may be asked to pay the full £1,200 himself. When he later claims it back, the insurer refunds £1,050 and keeps £150 as the excess.
2. Hospital billed directly: If the emergency assistance team deals with the hospital directly, Victor might only need to pay £150 at the hospital. The insurer pays the remaining £1,050.
3. Insurer pays upfront: If Victor can’t pay at the time, the insurer may pay the full £1,200 to the hospital and then ask Victor to repay the £150 excess afterwards.

Which one of these methods is used depends on the circumstances around each claim and what Emergency Assistance think is appropriate at the time.

Example 3: Holiday Cancellation for a Group

Imagine four travellers need to cancel their trip for an insured reason, but the way the claim would be handled depends on the type of policy they have.

If it's a family policy, the cancellation is handled as one claim. If they are four separate travellers, they would each make a claim for their proportion, resulting in four separate claims.

Family Policy

• The chosen level of cover has a policy excess of £75, and the total cost of their holiday is £1,800.
• The claim settlement would be £1,725 if approved by the insurer.

Group of Separate Travellers

• Each traveller has contributed £450 towards the holiday, and each person would make their own claim for £450.
• The chosen policy has an excess of £75 per person, then based on this, the claim settlement for each one would be £375.

This shows why checking whether the excess is per person or per policy is important when comparing cover.

Final Thoughts

Holiday insurance excess isn’t there to catch you out — but it’s important to understand how it works so you can choose the right level of cover and know what to expect if you need to make a claim.

By taking a moment to look at your excess before you travel, you can avoid unwelcome surprises and feel more confident in your cover.

Whether you prefer a standard excess, nil excess, or the reassurance of an excess waiver, choosing the right option depends on what feels right for your trip and your budget.

Get Peace of Mind with Voyager Plus Travel Insurance

Voyager Plus policies offer four levels of cover, including Single Trip and Annual Multi-Trip Travel Insurance options, access to GP on Demand, and include cover for the following:.

Click here to find out more about our Voyager Plus Travel Insurance.

This article is for information and entertainment purposes only. It does not constitute advice in any way. The information provided here is correct at the time of writing however please check the latest policy wording for the latest terms, conditions, and exclusions.