Could switching to a nil excess travel insurance policy save you money in the long run?
When you compare travel insurance policies, you can choose from numerous policies to suit your circumstances, budget and destination and can help make an informed decision about what to do next. But what part of the policy do you look at first? Is it the cost, the emergency medical expenses cover or is it the excess you have to pay? If it is the latter, then you will probably know that this can vary from £50 up to £250 and the cheaper policies have higher excess costs. But, buying a policy with an excess, could make it more expensive in the long run, should you need to make a claim.
What is an excess?
Put simply, this means the amount of money which you must contribute before your insurance provider will pay anything towards your claim. For example, if you have a £100 excess and claim £250 for your lost baggage, your insurance provider will reimburse you £150.
Buying a policy with nil excess isn’t ideal for everyone so weighing up the pros and cons are important.
Benefits of nil excess
- The good part is that without an excess, you will receive 100% of the money you’re claiming, up to the policy limit.
- May only be a small increase to the premium to make the policy nil excess.
Drawbacks of nil excess
- The policies can cost more than standard travel insurance with the same benefits.
- Make sure you need the nil excess. There is no point in getting it unless you need the benefit.
If you need to make a claim while on holiday or when you return home, the benefit of having a nil excess policy means that you can concentrate on the claim at hand and not have to worry about forking out extra money at what can be a stressful time.
Try our travel insurance comparison tool online, it’s easy to use and you can quickly compare the cost of a policy with and without an excess. Alternatively, our friendly and knowledgeable Travel Insurance Consultants are on hand to answer any questions you may have.
