What is a travel insurance excess?

An excess is the fixed amount you pay towards a travel insurance claim.

For example, if you have Budget Direct Comprehensive cover and your luggage is lost or stolen, we can pay you up to $7,500, minus your excess of $200.

On the other hand, if the amount you’re claiming is lower than your excess, you won’t get anything back.

Claims for some benefits attract no excess, for example ‘Travel delay expenses’ claims.

See all travel insurance excesses

How does travel insurance excess work?

Budget Direct travel insurance excesses apply to each insured event, each person claiming, and each benefit claimed.

For example, if your family’s luggage is stolen during your trip, you’ll each be required to pay an excess of $200.

If, later on during the same trip, you fall ill and are admitted to a hospital overseas, you’ll be asked to pay another, separate excess of $200. 

Note that claims for some benefits attract no excess, for example claims for ‘Travel delay expenses’.

See all travel insurance excesses

If I make a travel insurance claim, what will my excess be?

It depends on the Budget Direct travel insurance benefit you’re claiming: the excess will be $200 or $0.

Roughly half the benefits attract an excess, half don’t.

For example, you’ll have to pay the first $200 of a ‘Cancellation and amendment fees’ claim, but no excess for a ‘Delayed luggage allowance’ claim.

Claims arising from a handful of covered sports and activities attract higher excesses, ranging from $250 to $500.

For an additional premium, you can reduce or remove your excess.

See all travel insurance excesses

How do I pay an excess?

In most cases, we’ll deduct the excess from the benefit payable to you – you won’t need to do a thing.

For example, if you have Comprehensive cover with a standard $200 excess and you make a $5,000 claim for cancellation of your trip, we’ll pay you $4,800 ($5,000 minus the $200 excess).

Why do I have to pay a travel insurance excess?

Travel insurance excesses are designed to eliminate small claims that have a high administrative cost relative to the value of the claim.

This in turn helps keep your premium down.

Can I reduce my excess?

Yes – for an additional premium, Budget Direct policyholders can halve the standard excess to $100; or choose to have no excess.

You can add this optional extra to your policy when you get a quote and buy travel insurance (after purchasing your policy, you won’t be able to change your excess).

Note that, even if you opt to have your excess reduced or removed, the relevant excess will still apply to medical expenses stemming from covered pre-existing medical conditions or covered sports or leisure activities.

Can I get travel insurance without an excess?

Yes – for an additional premium, you choose to have no excess.

You can add this optional extra to your Budget Direct policy when you get a quote and buy travel insurance (after purchasing your policy, you won’t be able to change your excess).

Note that, even if you opt to have your excess reduced or removed, the relevant excess will still apply to medical expenses stemming from covered pre-existing medical conditions or covered sports or leisure activities.

Do I have to pay the excess if it's not my fault?

Yes – regardless of whether the loss or damage was caused by you or someone else, you’ll be required to pay any applicable excess.

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