How does no-excess travel insurance work?

Key takeaways

• An excess is the amount you pay towards a claim, while your insurer covers the remaining eligible costs

• No-excess travel insurance policies remove this cost, but they are usually more expensive than policies with an excess

• Travel insurance can include multiple excesses, with different amounts applying to different types of claims

• The best option depends on your budget and travel plans – compare premiums, excess levels, and cover before choosing a policy

What is a travel insurance excess?

A travel insurance excess is the amount you agree to pay towards a claim before your insurer covers the remaining costs. For example, if you make a claim for £500 and your policy has a £100 excess, your insurer would pay £400.

The excess amount varies between policies and may apply per person, per claim, or for different types of cover. Choosing a higher excess can sometimes reduce the cost of your premium, but it means you will pay more if you need to make a claim. Choosing no excess will increase your premium – but there will be nothing to pay in the event of a claim.

Always check your policy details to understand how your excess works before you travel.

📣 Did you know? 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?

No-excess travel insurance is a type of policy that does not require you to contribute towards the cost of a claim. This means that if you make a valid claim, your insurer will cover the full amount up to the limits set out in your policy, without deducting an excess.

These policies can provide greater certainty over claim costs, but they are often more expensive than policies that include an excess. As with any travel insurance policy, it is important to check the cover limits, exclusions, and terms and conditions before purchasing.

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?

Claims will be cheaper if you buy a no excess travel insurance policy, but the upfront cost of the policy will be more expensive. This is because no excess policies mean insurers take on more risk.

Can a travel insurance policy have more than one excess?

Yes, a travel insurance policy can have more than one excess. Different sections of the policy – such as medical expenses, baggage, cancellations, or personal possessions – may each have their own excess amount. In some cases, multiple excesses may apply if you make claims under more than one section of the policy.

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.

In addition, a policy might have a compulsory excess (set by the insurer) and a voluntary excess (chosen by the policyholder). In general, the higher the total excess (compulsory + voluntary), the lower your premium will be. However, you will need to pay a bigger proportion in the event of a claim.

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.

Whether a no-excess travel insurance policy is better depends on your needs and budget. A no-excess policy means you will not have to contribute towards the cost of a claim, which will make claiming cheaper and simpler.

However, policies without an excess are often more expensive than those with an excess. If you are comfortable paying a contribution towards any future claim, choosing a policy with an excess may help reduce the cost of your premium. If all goes to plan, you hopefully won’t need to make a claim anyway.

It is important to compare both the price and level of cover before deciding which option is right for you.

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

The right choice between single and multi-trip depends on how often you travel. If you are only planning one holiday during the year, a single-trip no-excess policy may be the most cost-effective option. However, if you expect to take several trips within a 12-month period, an annual multi-trip no-excess policy could offer better value and the convenience of being covered for multiple journeys under one policy.

Before choosing, compare the cost, destinations covered, trip duration limits, and level of protection offered to ensure the policy meets your travel needs.

This article explains more about single and multi-trip travel insurance policies.

Comparing travel insurance quotes

Whether you're looking for a policy with an excess or no-excess travel insurance, MoneySuperMarket can help you compare a range of options. Simply provide a few details about yourself, your travel plans, and the level of cover you need, and we'll search the market for policies that match your requirements. Once you've found the right policy, including one with an excess level you're comfortable with, you can click through to the insurer to complete your purchase.