An insurance excess is the amount you agree to pay towards a covered claim before your insurer pays the rest. For example, if your claim is approved for $3,000 and your excess is $500, the insurer may contribute $2,500, subject to the policy terms. Some policies have different excesses, such as basic, age, unlisted-driver or catastrophe excesses, and these can apply together. Check your product disclosure statement to see when an excess applies and whether choosing a higher excess could affect your premium.