We get lots of questions about what an excess is. It’s included in almost all insurance policies and has a very silly unintuitive name.
An excess is a way for you to contribute to your claim, if the excess is higher, you pay more towards your claim, but your policy is cheaper. If your excess is lower, you pay less towards your claim, but your policy is more expensive.
The reason for an excess is to share the risk between you and us, and it also reduces the need for smaller claims.
To better understand how an excess works, take the following example:
All your baggage is stolen and was worth £1,000. So you make a claim for £1,000
Because you chose an excess of £100, you would receive £900 for your claim (£1,000 - £100 = £900)
You chose an excess of £0, you would receive £1,000 for your claim (£1,000 - £0 = £1,000)