Written by Florence Page, BVSc MRCVS. Head of Business Development at Vetsure Pet Insurance.
In our ever evolving and sometimes turbulent world it’s hard to retain readiness for any unexpected event that may occur. Whilst the Scouts among us may live by the motto of “always be prepared”, for many others the ability to tackle unforeseen issues is not within our wheelhouse. If someone had said 10 years ago that in the next decade there would be a global pandemic, war in Europe, and that a lettuce would last longer in office than a Prime Minister we might have laughed in their face. What may have come as less as a surprise is the fact that the costs of goods and services has increased dramatically, in part owing to these shocks. It is for this reason, and to channel the aforementioned Scout’s motto, that the importance of pet insurance has increased significantly in recent years and it’s no wonder that 64% of dogs and 45% of cats are insured.
We’ve all heard the stories of animals needing life-saving intervention, costing thousands of pounds in the face of a terrible accident or illness. Whilst insurance is, of course, designed to aid in these situations, we hear less frequently of the smaller, incremental claims (£200 here, £300 there) which continue for the life of the pet. Interestingly over 70% of pet insurance claims are for less than £1,000 and over 90% are for less than £2,000. It is for both these reasons, but perhaps particularly the latter, that insuring your pet for lifetime cover is a no brainer in today’s world.
When shopping around for pet insurance, it can be incredibly confusing. There are so many different companies out there offering a variety of products, deciding which is right for you can be almost impossible. In general, it is best to review three key elements when choosing the best policy for you and your pet – what type of policy it is, what the excess is and whether it is possible to do direct claims.
Policies will normally fall into one of the following three categories:
Time and benefit limited: Each condition is covered for 12 months from its onset up to a set financial limit. The condition will stop being covered after 12 months or when the financial limit is reached – whatever happens first.
Maximum benefit: These typically provide cover per condition but up to a maximum financial amount. Once the financial limit has been reached, no further claims for that condition will be paid.
Lifetime cover: These generally provide the most comprehensive level of cover. Veterinary fee benefits “re-charge” each year that the policy is renewed. Depending on the provider this may apply in one of two ways.
The benefit limit is applied to ALL conditions per year e.g. £5,000 in total per year.
The benefit limit is applied PER CONDITION per year e.g. £5,000 per unrelated condition per year.
If you’re not sure about which is right for you it’s worth speaking to different companies and asking them a few key questions such as “is the cover lifelong with vet fee limits
recharging each year, so my pet will continue to be covered for ongoing illnesses?” or “can you claim against an unlimited number of conditions or is there a maximum vet fee benefit amount for all conditions?”.
The next crucial thing to consider is everything regarding the excess. We all know how excess works with our car insurance but when it comes to a lifetime pet insurance policy, having a high excess that you have to pay every year can really impact what hits your pocket. For some companies, you will only have to pay the excess once per condition. This means if you had to claim, for example, for a skin condition of your dog this year and it was an ongoing problem you would only pay the excess this year and not in future years when claiming for their skin treatment. With other policies, you will have to pay the excess every year, so whilst the skin condition might be covered in the future, each time you come to claim you will need to pay the excess again. You may also be able to get a policy where the excess can be tailored thereby impacting your monthly premiums. Finally, a thing to consider is what, if any, co-payments there are. These are fairly normal for pet insurance policies and mean that if you have an older pet, when you come to claim for it, you may have to cover a % of the bill above the excess. It’s important to understand if there is a co-payment and at what point this kicks in – some can be earlier than expected! To help understand excesses and co-payments you can ask the provider “how many times do you need to pay your excess?”, “What is your excess? Are you able to tailor the amount?” and “What is the co-payment and when does it apply?”.
Last but not least, it’s important to think about direct claims. If a company doesn’t offer direct claims, this means you will have to pay the vet the full amount owed then will be paid by the insurance company the amount claimed for. If a direct claim is possible, the insurance company will pay the vet directly minus the excess if owed so you won’t be out of pocket!
With all these things to consider, it’s no wonder that shopping around for pet insurance can be mind boggling. If you can speak to someone who is friendly and can answer any questions you may have, then you can be sure what you’re getting is the right thing for you so you can be a little more Scout, and a little less lettuce!
References:
PDSA Paw Report, 2024. Available at: https://www.pdsa.org.uk/what-we-do/pdsa-animal-wellbeing-report/paw-report-2024
Vetsure Pet Insurance: https://www.vetsure.com/pet-insurance-policies/how-much-cover-do-you-need/