New Zealand · Insurance guide
Understanding your insurance excess
An excess is the part of a covered claim you pay under the policy’s terms. The amount matters, but so does how and when it is applied.
Where to start
Premiums, excesses, benefit limits and uncovered costs are different. Compare them together, then use the policy schedule to see when and how the excess applies.
Key points
Excess is your claim contribution
The excess is the amount the policyholder contributes under the policy before or alongside insurer payment.
Higher excess may lower premiums
A higher excess can reduce premium cost, but that trade-off only helps if the claim-time amount is manageable.
Claim-time cost rises
Choosing a higher excess shifts more cost to the policyholder when a covered claim is made.
Check how it applies
Some policies use one excess for one event, while claims under separate policies can mean separate excesses. The current schedule and wording control.
The excess changes who pays first
If the policy covers the claim, the excess is the amount paid by the policyholder before or alongside insurer payment, depending on the policy wording.
Check whether one excess or several could apply
Some policies treat one event as one excess, while separate policies can mean separate excesses. Check the current schedule and wording to see how the excess applies to the actual claim.
Separate excesses from uncovered costs
An excess is different from a limit, exclusion or cost above the policy maximum. A claim can involve more than one kind of out-of-pocket cost.
What to check next
- The right excess level depends on personal circumstances and policy wording.
- Excess rules differ by policy.
- Check the policy schedule and wording.
A useful next step
Read the health-insurance trade-offs
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Sources and dates
Information was checked on 28 September 2026. Open the current official page before relying on a rate, threshold, eligibility setting or process that may have changed.
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