A Brief Guide to Understanding Travel Insurance Excess

Trying to find the very best travel insurance can be daunting and difficult. Deciding between annual travel insurance and single trip deals, and even the issue of insurance excess is also likely to cause great confusion. This article may provide some clarification and guidance for prospective travellers.

Essential Insurance Information

Anyone confused by the technical insurance jargon need only really remember that policy excess refers to the expected level of initial payment (from the insured person) in the event of a claim. This will differ greatly, depending upon the level of excess that is agreed when registering for the policy. The insurance company will pay any remaining money, up to the agreed claims cap. Relevant information regarding the excess should be included in the policy document and kept for easy reference.

Additional Protection

As mentioned, the level of excess will vary depending upon what policy a customer chooses. Some insurers may demand as little as £20 in the event of a £500 claim, however others will expect much higher amounts. There may even be stipulations regarding the level of excess associated with different areas of the policy. In the event of theft the customer could have to pay £30 for legal assistance and £50 for the replacement of stolen goods. It’s worth bearing in mind that some cheaper single trip or annual travel insurance policies may have relatively higher levels of excess.

The Excess Waiver

Prospective travellers who are prepared to pay a little more may be given the option of an excess waiver. This means they aren’t required to part with any of their own money in the event of a claim. Annual travel insurance customers may take this option as a guaranteed means of enjoying peace of mind throughout the year, however it may be deemed unnecessary for those simply looking forward to a quiet weekend away! Anyone who requires further clarification on the issue of excess should contact their insurers or seek independent advice. It may be possible to ascertain the track record of companies with regards to insurance payouts.

Policy Excess Warning

Most insurance companies will be unwilling to upgrade existing customer policies and completely waive the excess. This is why it is so important to do comprehensive research and purchase the correct level of insurance in the first place. But it’s also worth checking if any policy waiver covers injuries sustained during extreme activities and the loss of personal belongings. Such issues are particularly relevant to annual travel insurance customers, as it may need to cover a range of destinations and purposes for travel.