An insurance excess is the amount you agree to contribute towards an approved claim before your insurer pays the remaining covered costs. For example, with a $600 excess, you would generally pay the first $600 of a claim, subject to your policy terms. Some policies have different excesses, such as standard, age, inexperienced-driver or storm excesses, and a higher excess can sometimes reduce the premium. Check your Product Disclosure Statement or ask your insurer how the excess applies, as the amount and payment rules depend on your individual policy.