Pet Insurance Cost Cutting System
Think about how much your pets will cost you, the likely impact of vets' fees and how you'd react if they got ill (let's be clinical, this means will you pay medical fees or have them put down?)
Step 1. Is pet insurance necessary?
Vets' fees are rising, so be aware of the real potential costs. Fixing a cat's broken leg, for example, can cost $825. Surgery for a dog that has eaten something dangerous can cost $1,500.
As well as vet bills, pet insurance covers all sorts of weird and wonderful eventualities; for instance, if your cat is stolen, some providers stump up the cost of advertising and a reward, or even cover the cost of your holiday if you can't go because your pet's crook. Yet often these are added as hype to sell a policy and rarely claimed.
Consider self-insurance
Consider ‘self-insurance', where instead of paying premiums you put money in a 'doggie' fund; so that if your four legged friend gets poorly there's money ready to pay for it and meanwhile it's in the bank earning interest.
In practice, this means putting money aside in a savings account each month, to pay for any potential pet emergency, rather than getting an actual policy. And if there are no problems, you keep the cash. However, there are two main dangers to consider here: first, you’ll be stuck if an expensive problem arises before you’ve built much cash up, and second, your pet won’t be covered for public liability, so if it runs into the road and causes an accident, and the drivers sue, you’ll be liable for the cost (although it can sometimes be covered on your home insurance).
Exotic Pets
While this article concentrates on your regular cats and dogs, it's also relevant to those with more, ahem, exotic tastes. There are certain things to bear in mind: if you've koi carp worth $2,000 pay special attention to pay out on death or theft; if you have a tarantula (as I did aged 14) and like to show it off, perhaps consider third party insurance in case it takes a chomp out of one of your guests. Or then again, ensure the tank is very secure (my sister wishes I'd taken this advice!).
For this, head for specialist insurers (try out Exotic Direct, Golden Valley or Stoneways Insurance), yet you still need to watch out for the same old tricks (limits, excesses etc).
Step 2. Decide what kind of policy you want
Premiums vary according to a range of variables including pets age, pedigree and location (vets bills are higher in London and the South East). Policies differ in a number of ways so first consider what you want.
This is one product where the old adage ‘read the small print' really works. Buy the wrong policy and you could be faced with having to put your pet down, simple as that.
Warning! The truth pays
When applying for a policy be sure to disclose all your pet's medical history. This might push up premiums in the short term, but will save money in the long term, as providers won't pay up if they suspect that the problem already existed.
No going back
A dog is for life, not just for Christmas; and unfortunately this is often the case with pet insurance too. The reason? Most providers exclude pre-existing conditions, so if your pet develops a condition, you're stuck with that policy, as other plans won't cover it – not without a huge rise in cost anyway. So ensure you get the right policy from the off.
(P.S. Did you know "a dog is for life, not just for Christmas" is a registered trademark of the Dog's Trust charity?)
What to watch out for
* Pay out limits. Some insurers limit the amount they pay out each year. Others have a limit for each condition. Policies with a yearly limit are a safer bet; they will pay out for the lifetime of furry friend's condition, provided it does not exceed the limit each year. With per-condition limits, if your pet develops an ongoing illness, such as diabetes, they could quickly stop paying for treatment.
Also check whether there is a time limit on how long you can claim for one treatment (some policies only pay out for the first year of illness). The best offer a yearly limit for each condition, but no time limit on how long you can claim for one ailment; these include PetPlan*, Pinnacle and Marks & Spencer*.
* Life doesn't mean life. This one makes me barking mad (groan). Some insurers will try to flog you ‘lifetime cover'. However, don't fall for this – they can still increase premiums once your pet gets older or put in higher excesses and often still limit the claim for one ailment and can exclude prior conditions on renewal. True lifetime cover means the insurer promises not to increase the price with age and guarantees conditions are covered for life; some do it, but most don't.
* Excesses. If you are willing to fork out, changing the excess level (the amount you pay of any claim) cuts the cost. Though beware of policies where you must pay a share of any claim, usually about 10%, rather than a fixed limit e.g. $200. If your pet gets seriously ill this can be very costly.
To decide on your excess consider ‘how much would it cost before I claimed?' Getting a $50 excess if you wouldn't bother claiming for less than $200 is pointless.
* Hereditary Conditions. Watch this if you've a posh pooch, as certain pedigree breeds are more likely to develop hereditary conditions. Some policies specifically exclude treatment for hereditary conditions, so check to see whether this is the case. Many insurers also exclude conditions the animal was born with.
* Death. Some insurers will pay for your pet to be put down and a few cover the cost of cremation. If you've a pedigree chum, then consider insuring your investment in case the dog dies early.
* Dental. Policies that include dental treatment will usually demand that the pet has regular check-ups.
* And the rest … You know your situation better than the insurer, so think about which of the following you are likely to claim on: cost of advertising and reward if your pet is lost or stolen; third party injury; cost of a holiday if you have to cancel to care for your pet; kennelling costs if you are hospitalised.
Step 3. Get the shopping around done automatically
Once you've decided which cover suits you, price comparison site moneysupermarket.com has a pet insurance comparison service detailing different cover levels for cats* and dogs*. Unfortunately this only covers a limited number of providers but it’s still a good start as it produces a cheap benchmark price. Then once you’ve done this, get quotes directly from insurers not included, such as Marks and Spencer*, Pinnacle, PetPlan*, Sainsburys and Halifax* to give you a more comprehensive search.
Hidden cashback may be available too
As well as these official cashback schemes, a few insurers pay out cashback if you sign up to them via the specialist cashback shopping sites. This means you can sometimes sneak even more cash off. For more details on these sites read the Top Cashback Sites article.
Step 4. Haggle!
After that, armed with the right information, you are now in a position to ring up and haggle. Take the best quote to other insurers and brokers and haggle to see if a better price is available. You'd be surprised how often they'll reduce the price if they're about to lose a customer.
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