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.

Travel insurance no excess

At Holiday Extras, all our Platinum level policies come with zero excess as standard. Get an instant quote for your trip today using the booking engine.

*Exclusions do apply so please contact a member of our team if you are unsure.

Holiday Extras Cover Limited are authorised and regulated by the Financial Conduct Authority under registration number 828848, Holiday Extras Cover Ltd 05058680 is registered in England and Wales. Registered address, Ashford road, Newingreen, Kent CT21 4JF

Holiday Extras Cover Ltd is underwritten by White Horse Insurance Ireland dac is registered in Ireland No. 306045. White Horse Insurance Ireland dac’s Registered Office is First Floor, Rineanna House, Shannon Free Zone, Shannon, County Clare, Republic of Ireland. White Horse Insurance Ireland dac is authorised and regulated by the Central Bank of Ireland. Deemed authorised by the Prudential Regulation Authority and subject to regulation by the Financial Conduct Authority and limited regulation by the Prudential Regulation Authority. The nature and extent of consumer protections may differ from those for firms based in the UK. 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, our FRN is 203320.