A vet and insurance experts discuss how to choose the most suitable insurance policy for both your pet and your pocket.
Prices for animal veterinary care have increased massively over recent years, by nearly twice the rate of inflation.
And although the government stepped in earlier this year and veterinary practices will soon have to introduce a host of measures including capping the cost of prescriptions, publishing price lists online and providing itemised bills, prices still remain high.
And that’s why many pet owners believe insuring their furry friends is the only way to cope with potential vet bills that can sometimes run into tens of thousands of pounds.
“Veterinary treatment is perhaps one of the biggest considerations with pet ownership, as highly skilled medical care can be costly and often comes out of the blue,” Dr Rob Williams, president of the British Veterinary Association told the Press Association.
“Pet insurance is one way to help prepare for these unexpected bills, but it’s important to make sure you get the right policy for you and your pet, taking any pre-existing conditions into account, and to make sure you read the small print before committing.”
Jonathan Purvis, senior policy adviser for general insurance at the ABI (Association of British Insurers), explains that pet insurance primarily covers the cost of veterinary treatment when a pet is hurt or ill, including consultations, tests, medication, surgery and specialist treatment like physiotherapy.
Some policies may also offer additional services such as 24/7 vet helplines, online consultations, bereavement support and guidance on pet welfare.
“There’s no one-size-fits-all approach to pet insurance, with different policies offering different levels of cover, limits and benefits,” he says. “So whether they bark, purr, chirp or slither, it’s important to take the time to understand the options available and choose the protection that best suits you and your pet’s needs.”
And Hedda Baverud Olsson, CEO of pet insurers Lassie, stresses: “It’s super-important to compare what’s in the policy – sometimes it’s very easy to pick the cheapest, but the cheapest one might have exclusions, for example.
“We need to educate on how it works, because quite often people think they’ve got insurance so everything’s included, but that’s actually not the case. There’s very many different levels of coverage, and you pay accordingly.”
To help pet owners decide which pet insurance policy is right for them and their furry/scaly or even feathered friend, Olsson, whose mother is a vet, outlines some of the most important considerations before committing to a policy…
1. Think carefully about the type of policy you choose
The main types of pet insurance are:
Lifetime – the pet is covered up to a set limit each year, but if the limit is reached during the policy year, the pet won’t be covered for further treatment during that year, until the policy is renewed, when the full limit amount becomes available again.
The advantage of a lifetime policy is that the pet is covered for new illnesses and injuries, and Olsson says: “It’s very good to have lifetime cover. It’s a bit more expensive, but you’re choosing the coverage level you want, and then each year you renew the pot.
“So if your pet has a chronic disease, you’d be able to cover that every year. It means you’ll be able to get more help if something really big happens.”
Maximum benefit – the ABI explains that max benefit policies allow a set amount of money for each illness or injury your pet needs treatment for.
But Olsson points out: “If you, for example, have max benefit, then it might say the allergy maximum is £4,000, and after four years you might have already used all of that, and the insurance won’t cover anything more after that.”
Any illness or injury a pet had before the policy started isn’t covered.
Time-limited – time-limited policies cover pets for new illnesses and injuries, so any ailment from before the policy started won’t be covered, says the AIB.
A fixed sum covers the pet for the treatment of each new illness or injury, and there’s a set time period (often 12 months) for when treatment will be covered.
Accident-only – the cheapest policies are usually accident-only, which pay a fixed amount to help treat accidental injury to pets, but don’t cover illness. The AIB says some accident-only policies have a 12-month time limit.
2. Take out a policy when your pet is young
Olsson says that if you take out a lifetime policy, it makes sense to sign up early.
“Sign up your puppy or kitten for pet insurance straight away, and keep paying it yearly because if you choose the lifetime coverage you’ll never have the issue of having pre-existing conditions where you know your pet has something chronic but they’re not covered for it.
“It’s really good to have it straight away because then you know you’ll usually be covered. It’s the same with car insurance – you can’t sign up for car insurance after the car’s crashed.”
3. Be aware of waiting periods
There may be a waiting period (often between 14-60 days after the policy starts) before owners can claim, warns Olsson.
4. Check exclusions
Pet insurance policies may exclude certain conditions, which means if your pet gets that condition the policy isn’t going to pay for the veterinary treatment.
Olsson explains: “I have a Labrador, for example, and they might say Labradors quite often have problems with hips, so we’re excluding hips – that’s why it might be cheap.
“So you should really look at what’s included and the breed you’ve bought – what are some genetic issues the breed may have, or some common accidents to cover for, because you don’t want pet insurance with a lot of exclusions.”
5. Consider the excess
As with other insurance policies, there’s likely to be an excess payable by the owner when a claim’s made, and owners can often choose the excess amount when they choose the policy. In addition, there may also be a co-pay percentage amount, so the owner pays a fixed percentage towards the treatment cost.
Olsson says: “You can pick zero upfront excess and zero percentage excess, but then you’ll pay a higher monthly premium. And if you’re paying a 20% or 50% co-pay, the monthly cost will decrease, but if something happens, you’ll pay more yourself.
“Would you rather pay a bit more monthly and have higher coverage if something happens, or pay a cheaper price each month but then have to pay something out of your own pocket? You have to choose what fits your economy best.