It’s important to understand how the ‘excess’ works on your travel insurance policy, so that you don’t get caught out. The excess is the amount that the policyholder pays towards any claim. So, if you put in a claim for £500 and the policy excess is £100, the insurer would pay out £400. But some policies charge an excess per section, and the costs can quickly add up. For example, if you were mugged, you could be charged a £75 excess for medical costs, plus a £50 excess for loss of personal effects. Other policies charge just one excess per claim, which can work out much cheaper.