First off, some definition is in order. Excess travel insurance is the amount that you have to pay for in the event you claim insurance, and the remaining amount, up to your cover limit, will be shouldered by your insurance company. The following should further clarify this.
Excess Waiver in Action
Just like in other types of insurance, insurance companies sometimes ask clients to participate in the claims via excess payment, and to be more specific, you pay the first part of the insurance claim. This is the part that you have to pay for the cost of each claim, all of which are subject to the benefit’s maximum stated limits.
To see how excess travel insurance works, here is an example: suppose your baggage got lost, and it has a £1,000 maximum limit and your excess is set at £100. First you have to pay the £100 and the insurance will pay the rest, again subject to the stated maximum.
What this means is that if the claim is £500, your insurance company only pays £400 because you will pay the £100 first. Typically, every benefit under an insurance policy (including travel) has its own excess amount so that if you file two claims under different benefits, you have to pay the excess for each of them.
The Benefits of Excess Waiver
This is where the excess waiver comes into play, because now you don’t have to pay the excess amount whenever you file a claim against the policy. If you take an excess waiver, you do have to pay a few extra for the additional premium amount because it is a bonus cover.
Keep in mind too that some travel insurance companies let you choose a medical excess level or have the excess changed to an amount you prefer. Depending on the cover you get, the excess may be covered by your current insurance. Another benefit is that excess amounts vary from benefit to benefit so you have a lot to choose from.
To avoid problems with claims, it’s important that you learn as much as you can about travel insurance, and read the terms and conditions carefully. For some, the idea of paying a few extra pounds for the excess waiver may seem like a lot, but actually it isn’t. In fact, you’ll be happy for it every time you make an insurance claim.
To keep things simple and avoid confusion, remember that “excess” refers to the amount that you have to pay first before the insurance company steps in. With an excess waiver, you don’t have to pay for anything anymore as that is covered by the premium.
Just remember that the waiver amounts differ per insurance company, so take a look around before signing an agreement. The more research you do, the less likely you’ll end up with the wrong policy.
Finally, remember that excess waiver may not be available for sports and other activities that the insurance company deems as risky, so keep that in mind when you look for excess travel insurance.