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If you’re planning a trip, you’ve probably heard of travel insurance. But did you know that many travel insurance policies come with something called an excess? In this guide, we’ll explain what travel insurance excess is, how it works, and how to choose the right policy for you.
What is Travel Insurance Excess?
Travel insurance excess is essentially the amount of money you’ll have to pay out of pocket before your travel insurance policy kicks in. It’s similar to the excess on your car insurance policy: if you’re involved in an accident and need to make a claim, you’ll have to pay the excess first before your insurer covers the rest of the costs.
For travel insurance, excess can apply to a range of different things, such as medical expenses, trip cancellations, lost or stolen luggage, and more. The amount of excess you’ll have to pay can differ depending on the policy you choose, and can range from a few hundred dollars to several thousand.
How Does Travel Insurance Excess Work?
Let’s say you’re on a trip and you slip and fall, breaking your arm. You go to a local hospital and receive medical treatment, which comes to $2,500. If your travel insurance policy has an excess of $500, you’ll have to pay that amount out of pocket first before your insurer covers the remaining $2,000.
If your policy covers multiple things, like medical expenses and trip cancellations, you’ll have to pay the excess for each separate claim you make. So if you lost your luggage and also needed medical treatment, you’d have to pay the excess for both of those claims.
How to Choose the Right Travel Insurance Policy with Excess
When it comes to choosing the right travel insurance policy with excess, there are a few things to keep in mind:
- Consider your budget: The higher the excess, the lower the premium (the amount you’ll pay for the policy). If you’re on a tight budget, a policy with a higher excess might be a good choice.
- Think about your needs: If you’re planning a high-risk trip where you’re more likely to need to make a claim, like a skiing holiday or a backpacking trip, a policy with a lower excess might be a better option.
- Check your existing insurance: Some credit cards and health insurance policies already offer some form of travel insurance coverage. Make sure you check what’s already included before you buy a separate policy.
- Read the fine print: Make sure you understand exactly what’s covered by the policy and what the excess amount is before you buy. Don’t assume that everything is covered.
FAQs
| Q: Can I get a policy without an excess? | A: Some policies may offer an “excess waiver” option, which means you pay a slightly higher premium but don’t have to pay an excess if you need to make a claim. However, these policies can be more expensive overall. |
| Q: Does the excess apply to each person covered by the policy? | A: No, the excess applies to each claim made. So if two people on the same policy both needed medical treatment, they would each have to pay the excess for that claim. |
| Q: Can I change the excess amount on my policy? | A: It may be possible to change the excess amount on your policy, but this could affect the overall cost of the policy. Contact your insurer to find out more. |
Conclusion
Travel insurance excess can be a confusing topic, but it’s an important aspect of any travel insurance policy. By understanding what excess is, how it works, and how to choose the right policy for you, you can ensure that you’re properly covered on your next trip.