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What is 'policy excess'?

When it comes to travel insurance, the obscure terms that are frequently banded around can be more than a little confusing. In this article, we'll take a look at decoding one such term - 'policy excess'.

'Policy excess' definition

Simply put, an insurance policy excess is a set amount of money you will have to pay towards a claim, regardless of who is to blame for the incident.


Suppose you needed to make a claim after losing your smartphone on holiday. You take a look at the policy wording and note that you're covered for up to £500 for lost gadgets, with a compulsory excess of £75.*

This means the actual cover amount you'd receive is £425

£500 - £75 = £425

Exactly how much you pay for a compulsory excess depends on which cover level you have selected. We advise checking out policy excesses to find out exactly how much you might be expected to pay in the event of a claim, before buying a policy.

If you'd prefer not to have an excess, some insurers will offer to remove excesses from your policy, for a small fee. This is usually arranged at the time of purchasing the policy.

Holiday Extras Travel Insurance is sold and administered by Holiday Extras Cover Limited who are authorised and regulated by the Financial Conduct Authority under registration number 828848.

Holiday Extras™ is a Trading Name of Holiday Extras Cover Limited

Holiday Extras Travel Insurance is provided by Taurus Insurance Services, an insurance intermediary licenced and authorised in Gibraltar by the Financial Services Commission under Permission Number 5566 and authorised to passport general insurance intermediary services into the UK and registered with the Financial Conduct Authority in the UK under registration number 444830.

The insurance is underwritten by Great Lakes Insurance SE. Great Lakes Insurance SE is a German insurance company with its headquarters at Königinstrasse 107, 80802 Munich. UK Branch office: 10 Fenchurch Avenue, London, EC3M 5BN, company number SE000083. Great Lakes Insurance SE, UK Branch, is authorised and regulated by Bundesanstalt für Finanzdienstleistungsaufsicht. Deemed authorised by the Prudential Regulation Authority. Firm Reference Number: 769884. Subject to regulation by the Financial Conduct Authority and limited regulation by the Prudential Regulation Authority. Details of the Temporary Permissions Regime, which allows EEA-based firms to operate in the UK for a limited period while seeking full authorisation, are available on the Financial Conduct Authority’s website.