Booking travel insurance can sometimes feel like learning a new language. There are lots of terms that not only need translating but understanding intimately, and ‘excess waiver’ is one of them. Here we’ll answer the question ‘what is excess waiver travel insurance?’ and cover everything you need to know regarding one of the more complex yet optional aspects of any policy.
Contents
- What is Travel Insurance Excess?
- So What is Excess Waiver Travel Insurance?
- Is an Excess Waiver Included in All Travel Insurance Policies?
- What is the Benefit of the Excess Waiver?
- What Does ‘No Excess’ Mean in Travel Insurance?
- Do I Need Excess Waiver on Travel Insurance?
- Conclusion
What is an Excess Waiver in Travel Insurance?
An excess waiver is an optional extra that you can add to your travel insurance policy, eliminating the excess costs you would be responsible for paying if you had to make a claim.
This would result in your insurance provider paying out the full claim amount, without deducting any excess.
What is Travel Insurance Excess?
Travel insurance excess is usually a set fee that an insured person will need to pay in case of any claim. For example, a person falls ill whilst on holiday and receives a medical bill of £100. Let’s say their insurance policy has an excess of £50. This means the excess will be deducted, and the traveller must pay the remaining £50 of their medical bill.
Many travellers are unaware of their excess due to not reading their insurance policy thoroughly. Excess amounts can differ wildly from one policy to the next. It’s important to be aware of this so you know the price of making a claim.
To muddy matters further, an excess can either be ‘compulsory’ or ‘voluntary’. A compulsory excess is a figure set by your insurer, whereas the traveller sets a voluntary excess. Some policies may include both of these, the total of which will be your official level of ‘excess’.
To give an example, let’s take a compulsory excess of £50. Then combining this with a voluntary excess of the same amount would mean a total excess of £100.
It’s also worth noting that different claims within a travel insurance policy can have different levels of excess. Some excess waiver policies may have a compulsory excess for certain types of claims, despite the ‘waiver’ nature of their policy. You should be sure to read the small print to be fully aware of your rights before you travel.
A UK Post Office survey in 2022 found that as many as 44% of travellers didn’t actually know the amount of excess they’d signed up for; for some, this could be equivalent to burning money.
So What is Excess Waiver Travel Insurance?
Many travellers will find themselves asking the question, what is excess waiver travel insurance? Excess waiver travel insurance removes any excess from your insurance policy. Using our previous example, if you need to claim a £100 medical bill, the whole sum will be covered by your insurer. Excess waiver travel insurance gives travellers added peace of mind. But, usually means that the overall cost of your policy is higher than one containing an excess clause.
Our own excess waiver travel insurance policy is offered as an optional extension for an additional premium. This means that travellers can find the perfect insurance solution for their own needs.
Is an Excess Waiver Included in All Travel Insurance Policies?
No, unfortunately, an excess waiver is not just a given when purchasing travel insurance. It is an optional-add feature that travellers can choose when purchasing a travel insurance policy from providers like GasanMamo. It essentially allows travellers to reduce or eliminate the excess (also known as a deductible) that they would be responsible for paying in the event of a claim.
Please note that adding an excess waiver to your travel insurance policy may result in a higher premium. It’s up to you to weigh the potential savings in case of a claim against any additional waiver cost.
What is the Benefit of the Excess Waiver?
Alongside added peace of mind, excess waiver covers all eventualities. It can be annoying to pay an excess fee, especially if you have two or three incidents on the same trip. If your excess is £50 and you need to spend £30 on medical bills on three separate occasions, that’s £90 you’re out-of-pocket, in addition to your holiday and insurance costs.
What Does ‘No Excess’ Mean in Travel Insurance?
It’s not uncommon to see the term ‘no excess’ used in some insurance policies. In truth, ‘no excess’ is precisely the same as ‘excess waiver’. You’ll likely pay a higher price for your policy, but should you need to claim, you won’t need to pay a pre-agreed ‘excess’.
Do I Need Excess Waiver on Travel Insurance?
Travellers should consider their own needs and make a decision based upon a personal risk assessment. It’s worth considering where you’re travelling and how far you’ll be from a reliable hospital or police station.
You should also consider your intended length of time away and the kind of activities you have planned. Remember that the likes of the US and Canada have the most expensive healthcare systems in the world, so it’s not just a case of insuring yourself when travelling to less-developed countries.
When shopping around for travel insurance, have a calculator at the ready. Once you’ve made your risk assessments, work out the potential monetary benefits of either paying or not paying an excess. However, it’s hard to put a price on peace of mind!
As with any aspect of insurance, the excess/excess waiver is just one facet to consider. Look at policies as a whole and consider your options overall before deciding on the right policy for your adventure. Single-trip travel insurance for beach holidays within Europe will require a different form of coverage from the likes of Backpacker Insurance, which usually involves multiple destinations over many months.
Conclusion
It pays to study a policy intimately to ascertain the finer points of any excess waiver travel insurance. If you’ve gone for a policy with an excess – or discover your ‘no excess’ policy actually has a compulsory excess in certain circumstances – you’ll also need to be aware of how this excess will be charged. Will you only have to pay excess once or in the event of multiple insurance claims? And will this apply across different sections of your policy, per person or across your travelling group?
Such knowledge can make a huge difference to the policy you opt for, your overall costs, and the enjoyment of your holiday, so it pays to do your homework. To get started, take a look at our competitive and comprehensive benefits, optional extras, and annual offer on our travel insurance page.
GasanMamo Insurance is authorised under the Insurance Business Act and regulated by the MFSA.