The world of insurance excess. This is the amount you have to pay towards a travel insurance claim. It's a frustrating thing because it can often make it feel like claiming isn't worth it. Particularly when you're claiming for something small like a lost bag. Luckily, there's a type of travel insurance that doesn't have an excess, creatively named 'no-excess travel insurance'. In this guide, we'll look at the pros and cons of travel insurance with no excess and what it covers you for.
Key points
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No-excess travel insurance is a standard travel insurance policy, you just don't pay an excess if you need to make a claim.
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They're usually more expensive than a standard policy. You can get single-trip insurance with an excess on the policy for £2.801. In contrast, you can get a single-trip policy without an excess from £5.642. You might have to pay an additional fee upfront for a no-excess travel insurance policy, though.
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Even with a no-excess travel insurance policy, you still might have to pay an excess on certain claims. Check your policy documents so you know what the excess waiver applies to.
What is travel insurance excess?
This is the amount you pay out of your own pocket towards any claim. Different features on your policy might have different excess amounts. For example, lost baggage might have a £100 excess. Whereas personal liability (this is if you're responsible for injuring someone else or damaging their property) could have an excess of £150.
For example, if your travel insurance provides £1,500 worth of baggage cover, and your excess is set to £100, this means you'd end up with a pay out of £1,400 if you make a successful claim.
What are the different types of travel insurance excess?
There's 2 types and you'd pay both if you're claiming:
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Compulsory or standard excess - This amount is set by the insurer, and will be deducted from the payout of any successful claims you make. It can range from £50 to £250, sometimes more. Some insurers have an excess per claim, so you'd pay an excess for each separate incident. For example, if you needed to claim for medical care and lost baggage, you'd pay an excess for both. Others have a maximum excess per policy, which limits how much you pay for all claims under the same policy.
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Voluntary excess - This is an amount you'd voluntarily pay towards a claim. For example, when you buy your policy, you could choose to set your voluntary excess at £150 if you wanted to. But remember, even though it's called a 'voluntary excess', you'll still have to pay this towards a claim. So, choose an amount you can afford.
Crucially, if you're making a claim, you'd need to pay both of these amounts towards it. For example, your insurer sets an excess of £100, and you decide to set a voluntary excess of £50, your insurer would deduct £150 from your payout.
Can I get travel insurance with no excess?
Yes, you can get travel insurance with no excess. This is called an 'excess waiver'. But, they're not as common as policies with an excess and could be costly.
Because you're not paying an excess in the traditional sense, your insurer still has to cover this cost. As a result, your insurance premiums can be more expensive. You might have to pay an extra fee upfront, too.
Even on a no-excess insurance policy, you might have to pay a compulsory excess on some claims. So, make sure you read your policy details before buying.
What are the advantages of travel insurance with no excess?
If you're considering buying travel insurance with no excess, here are some key advantages:
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You'll get 100% of the money you're claiming
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You don't have to pay anything towards your claim - this is really useful if you're making a few claims where multiple excesses could apply
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It can make smaller travel insurance claims worth it because you're not losing a large proportion of your payout to an excess
You can buy travel insurance with no excess on most types of travel insurance policy, including:
What are the disadvantages of no-excess travel insurance?
We wouldn't be doing our job if we didn't provide the disadvantages too, so here they are:
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It's usually more expensive. You could get a single-trip policy with an excess amount of £250 from £2.801. With no excess, you could buy a policy from £5.642. You could buy an annual travel insurance policy from £11.403 with an excess up to £250. With no excess, it could cost from £25.644. Remember though, you might also have to pay an additional fee upfront to waive the excess.
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There's not as much choice when it comes to insurers, so if you want to add any specifics like winter sports insurance or travel insurance with golf cover, you might find this difficult.
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The excess waiver only applies to certain parts of the policy, so you might still have to pay an excess for some claims.
1The cheapest price for single-trip travel insurance. Based on 1 adult aged 30 with no pre-existing medical conditions, travelling in Spain for 3 nights. Confused.com data, August 2024.
2The cheapest price for no-excess single-trip travel insurance. Based on 1 adult aged 30 with no pre-existing medical conditions, travelling in Spain for 3 nights. Confused.com data, August 2024.
3The cheapest price for European multi-trip travel insurance. Based on 1 adult aged 30 with no pre-existing medical conditions. Confused.com data, August 2024.
4The cheapest price for no-excess European multi-trip travel insurance. Based on 1 adult aged 30 with no pre-existing medical conditions. Confused.com data, August 2024.
What should you consider when buying travel insurance with an excess?
Other people on your policy and excesses
A policy normally applies to each person on group or joint policies. So, if everyone on your policy loses their luggage, each person would have to pay an excess.
Excess exclusions
For some types of travel claim, you might not have to pay an excess. For example, claims for travel delays or accidental death often have no excess. You'll usually find this in your policy documents as these exclusions apply before you've claimed.
Excess waivers
For some claims, your insurer might waive the excess. For example, some insurers waive or reduce the excess for emergency medical treatment claims if you use a Global Health Insurance Card (GHIC). We know what you're thinking, isn't this just the same as the point above? There's a subtle difference. This type of waiver happens when you claim, and might not have been mentioned when you bought the policy. Exclusions are often set out in your policy documents.
Your excess and payouts
Because your excess is deducted from your claim payout, it reduces the amount you get overall.
Excesses and claiming
It might not be worth claiming if you're only claiming for a small amount. For example, if you lose a suitcase of clothes that's worth £50 and your excess is £150, then it's probably not worth claiming.
More choice of travel insurance providers
There's more choice of policies if you choose to include an excess. The price of your insurance might also be cheaper. But the most important thing is to get the right cover for you and your holiday, rather than just buying the cheapest policy.
Insurers charge excesses differently
Insurers charge excess in different ways. So, it's important to read the small print of your travel insurance carefully. That's our golden rule for all insurance policies. Here's some examples of how insurers charge excess:
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Per person - Each person only pays the excess once, no matter how many times they make a claim.
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Per incident or claim - You might pay a different excess for each claim you make. So, if your bag is stolen and you make a successful claim, you'd pay an excess for it. If you then claim for an injury you needed medical treatment for, you'd pay a separate excess.
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Per policy section - If a single claim covers multiple sections of your policy, you pay an excess on each section. Here's a scenario: Your bag is lost or stolen and it has your laptop in it. You'd claim on your baggage cover and gadget cover and pay an excess on both. The excess amount between two policies could be different. For example, you could pay £100 for baggage cover and £150 for gadget cover.
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