An insurance excess is the amount you agree to contribute towards a covered claim before your insurer pays the remaining approved costs. You may need to pay an excess for each claim, although some policies waive it in specific situations or apply different excesses for events such as storms, theft or inexperienced drivers. Choosing a higher excess can sometimes reduce your premium, but it means greater out-of-pocket costs if you claim. Check your product disclosure statement or ask your insurer to confirm which excesses apply.