Many newer travellers, including backpackers going on their first trip usually haven’t heard of ‘travel insurance excess’ before, and if you’re a more seasoned traveller and aren’t sure of what an ‘excess’ is — not to worry! That’s what this page is for. 

It’s important to understand excess, because reducing your travel insurance excess can reduce your costs if you need to make a travel insurance claim and alternatively, if you choose a higher excess when you purchase a policy this will reduce your premium.

What is travel insurance excess?

Travel insurance excess (also sometimes called a deductible) is the amount you are required to pay or bear for each claimable event under your policy. If you make multiple claims arising from the same event, only one excess will apply. However, if your claims relate to separate, unrelated events, an excess will apply to each claim, unless stated otherwise. 

Anything above that excess, up to the limit defined in the Product Disclosure Statement, can be covered by the insurer for a valid claim. The excess is deducted after any relevant depreciation and/or limits have been applied to the claim amount. Your policy excess is listed on your certificate of insurance. 

Example of travel insurance excess

A traveller on an overseas holiday is injured in an accident and receives a medical bill of $1,000. 

If the traveller has a travel insurance policy with unlimited emergency medical and hospital expenses cover and has a $200 excess listed on their certificate of insurance, the traveller would receive up to $800 back once their claim was processed. 

As each individual’s circumstances are different, we will assess each claim on a case-by-case basis and in accordance with your specific circumstances, policy terms and Certificate of Insurance.    

Any advice is general advice only and does not take into account your individual objectives, financial situation or needs. Consider the PDS as eligibility criteria, policy terms, conditions, exclusions and limits apply.

How excess affects your travel insurance policy

When you apply for your policy with Fast Cover Travel Insurance, you will need to choose the excess amount from the listed excess options. However, if you have purchased your policy while already overseas, the excess is $500, and you cannot reduce this excess.  

Your premium will be affected by the excess you choose. Below are some considerations to take into account when choosing your excess.

Choosing a higher excess

Choosing a higher excess on your travel insurance policy will allow you to reduce the cost of your travel insurance policy premium. 

If you increase the excess, you’ll have to pay or bear more should you have to make a claim for something that’s covered by your insurance, for example: 

• Becoming sick and needing to see a doctor or go to hospital 

• Breaking or fracturing a bone, being involved in a serious accident, and requiring medical care in hospital and an ambulance to take you there 

• Having your iPhone, camera, or other belongings lost, stolen or damaged 

• Making an unexpected early return home after a relative becomes sick or injured 

• Or another claimable incident to which an excess applies. 

Before selecting your excess, ensure that the amount is realistic for your financial situation, as you will need to pay or bear the excess amount for any eligible claim.

Choosing a lower excess

Choosing a lower excess on your travel insurance policy will increase your premium.  

If you have to make a claim, however, a lower travel insurance excess may end up saving you some money. Keep in mind that you won’t get anything back for a claim which is lower than your excess amount. 

When do I pay my excess if I make a claim?

You don’t have to pay the excess when you first purchase your policy – only if you have to make a claim. How you pay the excess may differ depending on the situation. 

Often, it’s simply the case that the amount of excess will be deducted from any claim that’s being paid. In other cases, the travel insurer may pay the full amount of a claim, such as a large hospital bill, and require you to pay the excess upfront. 

As each individual’s circumstances are different, we will assess each claim on a case-by-case basis and in accordance with your specific circumstances, policy terms and Certificate of Insurance.    

Any advice is general advice only and does not take into account your individual objectives, financial situation or needs. Consider the PDS as eligibility criteria, policy terms, conditions, exclusions and limits apply.

If I make multiple claims, does that mean I’ll pay multiple excess charges?

If you make multiple claims arising from the same event, only one excess will apply. However, if your claims relate to separate, unrelated events, an excess will apply to each claim, unless stated otherwise.  So, if you make multiple travel insurance claims due to different emergencies while travelling overseas, the excess will apply to each of these claims.

Can I change my excess after I have purchased my travel insurance?

You can apply to change your excess after you’ve purchased your policy, provided you have not commenced your trip and you have not and do not intend to lodge a claim.  You can call our customer service team to apply for this change. 

It is important to note that you cannot change your excess for Already Overseas policies. 

Eligibility criteria, policy terms, conditions, exclusions and limits apply. Consider the PDS prior to deciding on which policy is right for you and your needs. 

Finding the right travel insurance policy and level of excess for you

It’s a good idea to look through the insurer’s Product Disclosure Statement as this will also be the place to find information about travel insurance excess and may include the amount that will be applied to your policy and how you might reduce or increase it. 

For more information and terms and conditions, refer to the Fast Cover Product Disclosure Statement.