How does no-excess travel insurance work?

Key takeaways

• No-excess travel insurance eliminates or reduces the excess you pay for a claim

• No-excess travel insurance typically comes at a higher premium so you will be paying more for the policy when compared to a policy with an excess

• If you're unlikely to make a claim, a standard travel insurance policy with an excess might be cheaper

• A "no-excess" policy could give you a higher payout, but it’s useless if it doesn't cover what you need (e.g., activities, medical expenses)

What is a travel insurance excess?

The travel insurance excess is the amount you, the policyholder, agree to pay out for any claims. To put it simply, if you incur a loss covered by your insurance, the excess is your share of the payment.

For example, if you make a claim for £650 and your policy has an excess of £100, you will receive £550 from your insurer – the claim amount minus your excess.

What is no-excess travel insurance?

Most travel insurance policies require you to pay a set amount, generally £150 or £200, towards any claims – this is known as the excess.

The travel insurer then pays the rest of the claim. But with a no-excess travel insurance policy, you are not required to pay anything when you make a claim. But you usually need to pay for more your premium so these policies aren’t always a cheaper option.

Can I get travel insurance with no excess?

Yes, it's possible to find travel insurance that doesn't require you to pay an excess. Several UK insurers offer individual and family travel insurance policies with no excess, suitable for both domestic and international trips.

These policies allow you to claim back the full cost of a travel insurance claim.

However, it's important to read the fine print. Some no-excess policies may include exceptions, such as a compulsory excess for specific types of claims.

For instance, you might encounter a £250 excess on personal liability claims, even if the policy is marketed as 'no-excess'.

Is it cheaper to buy no-excess travel insurance?

While no-excess travel insurance policies offer the convenience of not having to pay towards claims, they usually come with a higher price tag. Insurers charge more for these policies because they take on more risk.

This means that although there’s no excess, you may be paying more for a policy overall, especially if you don’t ever claim, through the higher cost of the premium.

Can a travel insurance policy have more than one excess?

Travel insurance policies can have multiple excesses. These are usually voluntary, which you choose, and compulsory, which the insurer sets. The total amount you pay as excess for a claim is the sum of these parts, and it can vary depending on the nature of the claim.

The compulsory excess can vary depending on the type of claim. On a lost luggage claim, it might be £25. For a repatriation claim, it could rise to £100 or more. Additionally, some insurers apply an excess to each separate incident or type of cover.

So, if you miss your flight to Australia because someone steals your bag, you could end up paying three excesses – one for the flight, one for the stolen bag, and one for any cash in it.

When you buy travel insurance it’s important to check the details of the excess, so you know exactly what you might have to pay if you do have to make a claim.

Is it better to buy a policy without an excess?

The right kind of travel insurance policy for you will depend on a variety of factors. Things like, the cost, what level of cover you have, what’s included, and your own pre-existing health conditions. The excess you pay is just one factor, and shouldn’t be the main reason for choosing a policy.

Opting for a no-excess travel insurance policy means you won't have to worry about paying any part of the claim, but they do usually come with a higher premium.

Should I buy single-trip or annual multi-trip no-excess travel insurance?

The choice between single-trip and annual multi-trip no-excess travel insurance depends on your travel habits. Single-trip travel insurance is designed to cover one holiday, usually lasting up to a maximum of 31 days.

If you only plan to take one holiday in the next 12 months, single-trip travel insurance with no excess can be a good way to protect against any unexpected costs.

However, annual multi-trip travel insurance may be the better option if you are planning more than one holiday in the next 12 months. On annual travel insurance policies with no excess, you won’t generally face extra costs even if you need to make a claim.

Comparing travel insurance quotes

If you are looking for standard travel insurance quotes MoneySuperMarket can help you find great deals. Just tell us a little about yourself, your travel plans, and the cover you need. We’ll search the market for deals that meet your requirements. Once you find the one you want, just click through to the provider to finalise your purchase.