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What Is An Insurance Excess And Why Do I Have To Pay It?

Excess Payments

Dear EssentialTravel.co.uk,
What Is An Insurance Excess And Why Do I Have To Pay It? Susan Boswell, Bath

Our Answer

When it comes to making an insurance claim, you may be confused by the 'excess' charge you will be required to pay. Our Policy Wording describes this as 'the first amount of each claim, per section, for each separate incident payable for each insured person.

Don't be alarmed by the technical definition! It is merely a prearranged amount that insured parties (you) are responsible for before a claim is processed.

Your excess will be a predetermined amount, which is calculated according to the following factors:

  • Your policy and coverage level
  • Age and/or medical condition of the insured party
  • The type of claim - medical, car hire and personal property claims all differ

How Does This Work?

Look at this example: Essential Travel offers emergency medical cover up to the value of £10 million on Superior Policies.

The standard policy has an excess charge of £125 with a lower premium than other policies. Yet the Superior Policy has a lower excess charge of £75, but carries a higher premium. Regardless of the premium price you will still receive the same amount of coverage; however you will be responsible for paying a different excess amount. Therefore paying the higher premium reduces the excess charge you would have to pay should you need to make a claim.

Be Aware

When booking an insurance policy ,whether it's for hiring a car or general travel insurance), be sure to check what the excess agreement is - and that you are happy with it. All our excess rates are highlighted in the policy wording.

Please be aware of that excess charges are standard procedure. Should you have any further queries, don't hesitate to contact our customer services office. We are friendly, helpful and always ready to answer your questions.

Last Updated: December 2010