An insurance excess is the amount you usually pay towards an approved claim before your insurer contributes the rest. Policies may have a basic excess, plus additional or special excesses depending on the circumstances, such as a young driver or certain types of damage. Choosing a higher excess can sometimes reduce your premium, but it means paying more if you claim, while a lower excess may cost more upfront. Check your product disclosure statement and ask your insurer how the excesses apply to your policy and claim.