Glossary · Financial Portfolio

What is an insurance excess?

An insurance excess is the amount you contribute towards a claim when it applies. A policy can have different excesses for different circumstances.

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Plain English. Australian context.

Insurance excess

Know what the term means, what it does not mean and where to go next.

Meaning & context

What it means for your records.

Plain-English information to help you organise your financial picture.

Financial Portfolio editorial team
Australian record-keeping context
Updated 7 October 2026

A simple example

For an illustrative accepted A$4,000 claim with a single A$750 excess deducted from the settlement, the payment would be A$3,250. Other policy conditions or excesses could change the actual result.

What to keep in your records

Record the basic excess and where any additional excesses are described. Keep the policy schedule and wording with the insurance record, rather than relying on a remembered amount.

A common mix-up

An excess is not a recurring premium. A policy may require you to pay it or deduct it from the settlement, depending on its terms. Read ASIC Moneysmart’s explanation.

Can more than one excess apply?

Yes, depending on the policy and claim circumstances. Read the schedule and policy wording, and ask the insurer which excesses apply.

Where can I check the meaning of insurance excess?

Use the ASIC Moneysmart source alongside the relevant statement or product documents. The examples here explain the term; they do not recommend a financial product.

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