An insurance excess is the amount you agree to pay towards an approved claim before your insurer contributes the rest. Choosing a higher excess may reduce your premium, while a lower excess can increase the premium, but the available options and prices depend on the policy and insurer. Some policies have different excesses for particular events, such as storm damage, theft or inexperienced drivers. Check your product disclosure statement and ask the insurer how the excess would apply in your circumstances before choosing cover.