Travel Insurance Excess Explained
By the Travel Insurance Comparison NZ editorial team
The excess is the amount you contribute towards a claim. It is one of the few parts of a policy you can often choose, and the choice changes both your premium and what you would receive if you claimed.
How an excess works
When a claim is accepted, the insurer works out the covered amount, applies any benefit limit, and deducts the excess. So a claim smaller than the excess pays nothing, and on a larger claim you receive the covered amount minus the excess. Your policy schedule shows the excess that applies to you.
Points that differ between policies:
- Per claim, per event or per person: whether one incident affecting several travellers attracts one excess or several.
- Benefits with no excess: some policies apply no excess to certain benefits.
- Separate or higher excesses: some policies set a different excess for particular items or situations, such as rental vehicle excess cover or specified activities.
Choosing your excess
Many insurers offer a choice of excess levels. A higher excess generally lowers the premium but means you pay more if you claim; a lower or nil excess generally costs more up front. Think about what you could comfortably pay at short notice while you are away, and how likely you are to make a small claim, such as for a lost item.
Excess on credit card travel insurance
If you are relying on travel insurance that comes with a credit card, SafeTravel suggests checking how the cover is activated, whether it comes with a higher excess, and whether it covers the length of your trip and your planned activities (SafeTravel (MFAT): Travel insurance).
Excess on rental vehicles
Rental vehicle excess is a different thing: it is the amount the rental company can charge you if the vehicle is damaged or stolen. Some travel policies include a benefit that reimburses it, with its own limit and conditions. Compare that benefit with the rental company's own excess reduction option before you pick up the car.
Frequently asked questions
What is a travel insurance excess?
The excess is the part of a claim you pay yourself. When a claim is accepted, the insurer deducts the excess from the amount it pays, up to the limit for that benefit. The excess amount is shown in your policy schedule.
Can I reduce or remove my excess?
Some insurers let you choose a lower or nil excess for a higher premium, or a higher excess for a lower premium. The options available, and what they cost, differ between insurers.
Does every claim have an excess?
Not always. Some policies apply no excess to certain benefits, and some apply the excess once per event rather than once per person. Check the excess section of your policy wording.
This page is general information, not financial advice, and does not take your personal circumstances into account. Cover, limits, excesses and exclusions differ between insurers and policies. The policy wording (and any policy schedule or endorsement) is what decides a claim, so read it — or ask the insurer — before you buy.
Sources
Official sources cited on this page, checked 30 September 2026.
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