In the context of travel insurance, the term “excess” refers to the amount of money that you are responsible for paying out of pocket before your insurance coverage kicks in and starts reimbursing your eligible expenses. It is also known as a deductible. Understanding how excess works is essential when evaluating and using your travel insurance policy. Here’s what you need to know:
1. Excess Amount
The excess amount is a predetermined sum set by your travel insurance policy. It represents the portion of any claim you must cover yourself before the insurance provider begins to reimburse you for the remaining eligible expenses. For example, if your travel insurance policy has an excess of $100, and you file a claim for $500 in covered expenses, you would pay the first $100, and the insurance provider would reimburse you for the remaining $400.
2. Types of Excess
Travel insurance policies may have different types of excess, and the specific terms can vary between policies. The two common types of excess are:
Standard Excess: This is the most common type of excess in travel insurance. It applies to most types of claims, including medical expenses, trip cancellation, baggage loss, and other covered incidents.
Voluntary Excess: Some policies allow you to choose a higher excess amount in exchange for lower premium costs. Opting for a higher voluntary excess can reduce your insurance premiums but means you will have to pay more out of pocket if you make a claim.
3. When Excess Applies
Excess typically applies to each separate claim you make under your travel insurance policy. This means that for each incident or event that qualifies for a claim, you are responsible for paying the excess amount before the insurance coverage begins. For example, if you have a medical emergency during your trip and need to visit a doctor, you would pay the excess amount once for that specific claim.
4. Covered Expenses
It’s important to understand that excess applies only to eligible expenses covered by your travel insurance policy. Expenses that are not covered or fall outside the scope of your policy are your responsibility, regardless of the excess amount.
5. Excess and Claims Process
When you need to make a claim, you will typically pay the excess directly to the service provider or cover the expense yourself and then submit the necessary documentation to your insurance company for reimbursement. The insurance company will review your claim and reimburse you for the covered expenses minus the excess.
6. Excess Amounts Vary
The amount of excess can vary widely between different travel insurance policies. Some policies may have a low excess amount, while others have a higher excess. The choice of excess amount often depends on your preferences, budget, and how much you are willing to pay out of pocket in the event of a claim.
Conclusion
In summary, excess in travel insurance refers to the initial amount of money you must pay before your insurance coverage begins to reimburse you for eligible expenses. It’s an important aspect to consider when choosing a travel insurance policy, as it can affect your overall out-of-pocket costs when making a claim. Be sure to read your policy documents carefully to understand the specific terms and conditions regarding excess, and don’t hesitate to ask your insurance provider for clarification if you have any questions.
