In this guide, we'll explain everything you need to know about travel insurance excess – from how it's calculated to whether you’re covered in car rental situations.
Key Takeaways
Travel insurance excess is the amount you pay towards a claim before your insurer covers the rest. Essentially, it’s your share of the cost.
Example: Your policy has a £100 excess, and you submit a claim for £500 in medical expenses. You'd pay the first £100, and your insurer would cover the remaining £400.
An excess often applies to each claim you make, but how this works can vary between insurers.
For example, with some providers, you’ll only pay one excess per claim. Other providers may apply an excess per section of the policy or per person. So, if you tripped, injured yourself and broke your camera, some providers would only charge one excess, whereas others might charge separate excesses for your medical costs and your damaged camera.
Always check your policy terms to understand how your excess will be applied.
Different parts of a travel insurance policy may or may not have an excess applied, depending on how the policy is structured.
In many cases, the excess is the same across most claim types, though some insurers reduce it for certain scenarios – for example, a lower excess may apply when claiming for a loss of deposit compared to a standard cancellation claim.
There are also sections where no excess typically applies, such as claims for delayed baggage or missed departure. Always check your policy documents to see where an excess applies and how much it is.
When you make a claim, the excess is taken off the amount your insurer pays. You send your claim as usual, and the insurer subtracts the excess before paying you.
Example: You had to cancel your holiday due to illness, and you're claiming £1,200 in non-refundable costs. If your policy excess is £75, your insurer would pay £1,125 (£1,200 minus the £75 excess).
If your claim is less than the excess, you won’t receive any payment from your insurer.
Example: If you claim £50 for lost medication and your excess is £100, you’ll pay the full cost yourself.
There is no single maximum excess; it depends on the provider. All insurers have their own limits, but they often range from £50 to £500.
An excess waiver is an optional add‑on that removes the excess you’d normally pay on a claim, reducing it to £0. While some insurers offer this as an add‑on, others simply provide a zero‑excess option instead.
Choosing an excess waiver will increase your premium, but it can offer extra peace of mind if you need to make a claim.
A higher excess usually means a lower premium. A lower excess often means you pay more for your policy.
Why? If you choose a higher excess, you take on more risk. Your insurer knows they’ll pay less if you claim, so they may reduce your premium.
When deciding how much excess to choose, consider your budget and how much you can afford to pay if something goes wrong.
Most travel insurance policies don’t cover car rental excess. When you hire a car abroad, the rental company usually includes its own insurance. But this often comes with a significant excess – sometimes over £1,000. If the car is damaged or stolen, you’ll need to pay that amount yourself.
Some insurers offer car hire excess cover as an add-on or a separate policy. This means you can claim back the excess you pay to the rental company if the car is damaged or stolen.
If you plan to drive abroad, check your travel insurance. Does it include this cover? If not, you may need to arrange it separately to avoid unexpected costs.
Making a claim with an excess is simple if you know the steps:
Remember, any excess will be deducted automatically from the payout. You don’t need to send this amount to your insurer.
If you are a Saga Travel insurance customer and you need to make a claim you can make your claim online.
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