In short the ‘excess’ is your portion of the bill in short. The amount you agree to pay upfront for any approved claim. It’s deducted from your payout, and various types of claims may have different excess amounts.
What is travel insurance excess?
Imagine travel insurance like a team effort towards unexpected costs on your trip. The “excess” is your share of the bill.. You agree to pay this amount upfront for any claim that gets approved.
- Excess = your contribution to a claim.
- It’s usually deducted from your payout.
- Different types of claims might have different excess amounts.
Can I get travel insurance with no excess?
The short answer is yes; you can get travel insurance with no excess.
Some insurance companies offer you to purchase an excess waiver for an additional fee. An excess waiver essentially removes the excess from your policy, but it comes at a cost.
Other travel insurance policies offer no excess, like LUMA Asia Pass, you do not have to worry about paying excess and can claim from the first dollar.
What are the different types of travel insurance excess?
A compulsory excess is an amount that is set by the insurance company and cannot be changed. This type of excess is typically found in standard travel insurance policies and is usually a fixed amount, such as $100 or $200.
A voluntary excess is an amount that you choose to add to your policy on top of the compulsory excess. This type of excess can help lower your premium, but it also means you will have to pay more out of pocket if you make a claim.
What are the advantages of Travel Insurance with No Excess
The most significant advantage of travel insurance with no excess is that you won’t have to pay anything out of pocket if you need to make a claim. This can provide peace of mind and save you from unexpected expenses while traveling.
Additionally, no excess travel insurance can be a more cost-effective option for those who plan on making multiple claims. If you have a policy with a $500 excess and make two claims for $1000 each, you will have to pay $1000 out of pocket. With no excess, you would not have to pay anything, making it a more affordable option in the long run.
What are the disadvantages of Travel Insurance with No Excess
The main disadvantage of no excess travel insurance is that it typically comes with a higher premium. As mentioned earlier, insurance companies use excesses to share the risk with policyholders, and by removing the excess, they are taking on more risk, resulting in a higher premium. Additionally, some insurance companies may have stricter eligibility requirements for no excess policies, such as age restrictions or specific destinations. It’s essential to read the policy wording and understand the terms and conditions before purchasing a policy.
So really, it’s down to your preference and your financial tolerance if you need a no excess policy. LUMA Asia Pass is a no excess travel insurance policy.