Loading, please wait...

What is Policy Excess?

When it comes to travel insurance, the obscure terms that are frequently banded around can be more than a little confusing. In this article, we'll take a look at decoding one such term - the ambiguous 'policy excess'...

Policy Excess Definition

Simply put, an insurance policy 'excess' is a set amount of money you will have to pay towards a claim, regardless of who is to blame for the incident.

This might sound like a bit of a bummer, but all it really means is that the amount you pay for the policy excess will be taken out of the money you receive for cover. In other words, to calculate the exact amount of cover you will actually receive after making a claim, you should always find how out much the policy excess is and deduct this from the cover amount.


Suppose you needed to make a claim after losing your smartphone on holiday. You take a look at the policy wording and note that you're covered for up to £500 for lost gadgets, with a compulsory excess of £75.*

This means the actual cover amount you'd receive is £425

£500 - £75 = £425

Exactly how much you pay for a compulsory excess depends on which cover level you have selected. We advise checking out policy excesses to find out exactly how much you might be expected to pay in the event of a claim, before buying a policy.

If you'd prefer not to deal with excesses, some insurers will offer to remove excesses from your policy, for a small fee. This is usually arranged at the time of purchasing the policy, so be sure to organise this excess waiver then. At Holiday Extras we offer a Platinum level of cover where you have zero excess on any claims

Travel insurance excess explained

The exact figure for a policy excess should be clearly laid out in the breakdown of a policy, which you can easily check out before buying.

Remember, very often, the policy excess is charged for each incident, and for each insured person. This means that if multiple claims are made, an excess for each separate incident would be charged.

For instance, if your baggage was delayed, you lost your passport and you fell and twisted your ankle, you would have to pay a separate excess for baggage delay, loss of passport and emergency medical expenses.

Travel insurance excess comparison

Provider Excess
Travel Time £125 - 300
Argos £100 - 250
Holiday Extras £0 - 150

Travel insurance no excess

If you want to avoid paying an excess on your travel insurance, most insurers will require you to purchase an 'excess waiver' (a policy add-on that removes the need to pay an excess when making a claim on your policy).

Holiday Extras removes the hassle of having to organise and pay for an excess waiver. With our Platinum level policy you can enjoy deluxe, top-notch cover levels, with absolutely zero excess. Get an instant quote for your trip today using the booking engine.

*Exclusions do apply so please contact a member of our team if you are unsure.

Holiday Extras Ltd is authorised and regulated by the Financial Conduct Authority. Registered address: Ashford Road, Newingreen, Kent CT21 4JF. Company number 01693250.

Holiday Extras is underwritten by Travel Insurance Facilities plc which is authorised and regulated by the Financial Conduct Authority. Registered address: 2nd Floor, 1 Tower View, Kings Hill, West Malling, Kent, ME19 4UY. Company number 03220410.