Some travel insurance policies have no excess fee
You can avoid losing out when you make a claim by choosing no-excess travel insurance. Here, we explain the pros and cons
Most travel insurance policies require you to pay a set amount, generally £150 or £200, towards any claims – this is known as the excess. But with a no-excess travel insurance policy, you can get all your money back when you claim, though you usually have to pay more for cover.
What is a travel insurance excess?
A travel insurance excess is the amount you agree to pay towards any claims when you take out the policy. So if you make a claim for £650 and your excess is £100, you should receive £550.
Can I get travel insurance with no excess?
Just remember to check for any exceptions before buying. For example, many insurers impose a compulsory excess of £250 on personal liability claims, even on no-excess policies.
Can I get cheap no-excess travel insurance?
You will usually pay more for no-excess travel insurance, mainly because the insurer is taking on more risk by agreeing to pay more towards any claim. However, shopping around is a great way to find policies that offer the right level of cover at an affordable price.
Can a travel insurance policy have more than one excess?
Yes, the excess on most travel insurance policies is made up of two parts: the voluntary excess chosen by you and the compulsory excess set by the insurer. For example, if the compulsory excess is £50 and your voluntary excess is £100, you will pay £150 towards any 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 £50 or more.
Some insurers also 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.
What are the advantages of travel insurance with no excess?
The main advantage of no-excess travel insurance is that you pay nothing – or at least much less – towards any claims. This can make it more worthwhile making smaller claims worth a few hundred pounds, as well as claims that trigger multiple excesses.
What are the drawbacks of travel insurance with no excess?
As a general rule, the higher the excess you agree to pay towards any claim, the lower the cost of your policy. So you will often pay more to take out a no-excess travel insurance.
Additionally mentioned above, sometimes excess fees are unavoidable, even with a no-excess policy.
If your claim exceeds the maximum claim limits set by your insurer, you may lose out, even if you choose a £0 excess policy. Most providers will only cover the loss of up to £250 or £300 in cash, and they could also cap the amount you can claim for lost luggage, or to cancel your trip.
Should I buy single-trip or annual multi-trip no-excess travel insurance?
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.
Compare travel insurance quotes
Comparing travel insurance quotes with MoneySuperMarket is a quick and easy way to find affordable cover for your holiday. All you need to do is tell us a little about yourself and your travel plans, and we’ll search the market for a list of quotes tailored to your requirements.
You’ll be able to compare policies by the overall cost of cover, the level of protection you’ll get and the excess you’ll need to pay to make a claim. Once you’ve found the deal you want, just click through to the provider to finalise your purchase.
As with any kind of insurance, the cheapest deal isn’t always the best available. We recommend aiming for a balance between cost and cover, so you know you have the protection you’ll need for the most affordable price.