What an Excess Is
An excess is an amount shown in the policy documents or schedule that you may have to pay or that may be deducted from an accepted claim. It can apply per incident rather than per policy period. The circumstances in which an excess does not apply differ between insurers.
Types of Excess
The names and types of excess vary between insurers. Depending on the policy, they may include:
- Basic excess: the standard excess that may apply to a claim.
- Voluntary or chosen excess: an amount you may be able to select, sometimes in exchange for a different premium.
- Age or driver excess: an additional excess that may apply depending on who is towing the caravan.
- Event excess: an additional excess that may apply to a specified event, such as hail or cyclone.
- Special or imposed excess: an additional excess applied to a particular risk and shown in the policy documents.
Compare the Total That Could Apply
Do not compare only the basic excess. Check whether additional excesses can apply together, whether an excess applies to liability claims and what conditions must be met for an excess not to apply.
At Claim Time
If an excess applies, ask the insurer which excess has been applied and why. Keep the current schedule and policy wording. If you disagree, make a complaint to the insurer and, if the matter remains unresolved, you can lodge a complaint with the Australian Financial Complaints Authority.