PET INSURANCE MADE SIMPLE

PET INSURANCE
MADE SIMPLE
Working with the profession to
simplify the language of insurance
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HOW TO CHOOSE THE RIGHT
PROTECTION FOR YOUR PET
– AND YOUR PURSE
We Brits are an animal-loving nation with
6.8m dogs and 9.6m cats in our homes
and almost half of households owning a pet.
Yet, just 15% of owners have pet insurance,
according to the Pet Council.
Unless you can afford to pay spiraling vets'
bills yourself if your cat gets run over, or foot
a liability claim if your dog bites the postman,
you need the protection of insurance.
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Almost half of Britain’s
households own a
dog or a cat
What is pet insurance?
Cover can vary a lot from one insurer to another – but most pet
insurance policies include cover for:
• Vets' bills for injury and illness.
• Third party liability if your dog injures someone or damages
someone else’s property.
REWARD
• Advertising costs to help find your pet if it is lost or stolen
– and the cost of a reward if someone finds or recovers your pet.
• The purchase price of your pet if it is lost, stolen, or dies
as a result of an injury or an illness.
Most insurers offer a range of policies from budget policies that
provide the basic cover listed above, to comprehensive packages
which automatically include extra cover for things such as taking
your pet abroad or kennel fees if you have to go into hospital.
Tip: Most policies won't cover routine vaccinations, neutering
and treatments like worming.
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Most insurance will
help cover advertising
or a reward if a pet is
lost or stolen
Does my pet need cover?
The great news for animal lovers is vets can now detect and treat
many more conditions than in the past. Veterinary medical science
has come on leaps and bounds in recent years, but all this comes
at a cost to pet owners' wallets.
In fact, the average bill is now over £300 with some complex
treatments such as hip dysplasia costing as much as £4,000.
It’s not unknown for fees to treat ongoing conditions to reach
£10,000.
For this reason, many people opt to take out insurance as – not
only does it provide valuable peace of mind against spiraling vet
fees – but it also allows you to explore available treatment options.
It is important to plan in advance and buy insurance as soon as you
get a new pet – you won’t be able to get cover for the cost of treating
an injury once it’s happened – and most policies won’t cover the cost
of treating pre-existing medical conditions. Unfortunately, a third
of owners will make at least one unexpected trip to the vet a year.
Cover can also help out with other unfortunate events, such as an
excitable dog knocking someone over (this is what’s referred to as
Third Party cover). Petplan recently paid damages of £40,000 to an
elderly lady who broke her wrist and hip following an incident – a sum
which few of us would be able to afford to pay ourselves.
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Third party damages
could reach a staggering
£40,000
What's available?
Pet insurance typically is offered in three tiers:
Lifetime cover
With this cover, as the name suggests,
provided you renew your policy every
12 months your pet will be covered for life.
This is useful if your pet has a long-term or
recurring illness, as insurers cannot refuse
to renew your policy because of this.
Maximum benefit policies
Cover is provided up to a maximum amount
for the cost of treatment for each illness and
injury your pet suffers. Each illness and injury
is covered until the maximum amount has
been spent, as long as the insurance policy
remains in force – there is no time limit on
reaching this amount. Once the policy limit
is reached, your pet will no longer be covered
for the treatment of that illness or injury.
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12 month policies
These policies cover the cost of treating a
particular illness or injury for 12 months from
the start of that illness or injury (as long as the
insurance policy remains in force). After the
set period has ended, or once the policy limit
is reached, your pet will no longer be covered
for the treatment of that illness or injury.
Accident-only policies
These only cover the treatment of accidents
and not illnesses or, at most, only provide
for emergency treatment of illnesses.
Lifetime cover is the most expensive and
accident-only cover the cheapest. Rather than
simply opting for the cheapest cover, you
need to make sure you find the right policy
for your particular pet. You don’t want to find
out you’re not covered, just when you need
it the most.
How to buy the best policy
• The age of your animal affects costs, so insure pets from an early
age. You may find it difficult to get cover when your pet gets older,
as some insurers will not offer new insurance for pets above a
certain age. However, if you take out insurance when your pet
is young the insurance can usually continue with the same
provider as your pet gets older.
• If you have more than one pet you can opt for a multi-pet policy,
which typically offers a 5% discount.
• If you're a senior citizen some insurers will offer you a discount
because of your age.
• If your pet is a pedigree breed it's likely you'll pay a higher
premium. This is because pedigrees have a reputation for
being more susceptible to illness than more hardy crossbreeds.
And some pedigree breeds are also more expensive than others
to treat. For instance, a Dachshund's average treatment cost
is £543 some 209% more expensive than a Whippet at £175,
according to Sainsbury's Pet Insurance data.
Not all insurers offer cover for pedigree animals – you may need
to shop around to find a specialist insurer.
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• Insurers generally won't insure so-called dangerous dogs and
working dogs. Insurers list any breeds of dogs that they do not
cover on their websites, so check before taking out a policy.
• Check the excess you pay. This is the amount you have to pay
in the event of a claim. Check how it is applied. Usually excesses
apply to the cost of treatment of each illness or injury, although
some only apply once and others apply to the treatment received
each year. If you can afford it, consider choosing a higher excess
to reduce the cost of insurance.
• Check for exclusions. Most policies won't pay out for bills for
medical conditions that existed before the policy was taken out.
So, in some instances, it may be worth staying with the same
insurer at renewal, if they're already covering the condition.
Who offers cover?
The good news is you have plenty of choice as pet insurance is sold
by charities, insurers, brokers, retailers and supermarkets so there
should be a policy for your budget.
Tip: Some retailers offer points and rewards for taking out insurance
with them, but don't be lured by the incentives alone – make sure
the cover is right for your needs.
How else can I save
• Vets fees increase yearly which in turn push up premiums, so it's
essential you shop around when your policy comes up for renewal.
• Comparison sites are useful starting points. But it's worth trying
insurers who aren't on these sites including the likes of Aviva
and Direct Line. You could also ask a broker or other insurance
intermediary to obtain alternative quotes for you.
Tip: To make your insurance cheaper, find a suitable policy then
check the various cashback sites to see if your chosen insurer is
offering money back so you can make a saving when protecting
your pets.
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There should be a policy
for every budget
large or small
Anything else I should know
• Your home insurance may also cover legal liability for damage
or injury caused by pets, so check your policy.
• You may find yourself out of pocket if your property is severely
damaged, says Defaqto. Nearly a third (27%) of home insurance
products do not include cover for cattery or kennel costs if your
home is uninhabitable as a result of, for example, a fire or flood.
So again, check your policy wording or ask your insurer if unsure.
Covering your pet abroad
• If you're planning on taking your pet overseas, you should check
if your policy covers vets fees abroad.
• Watch out for exclusions such as countries that aren't covered
or limits on how long you can spend abroad.
• Also check if you'll be compensated for disrupted travel plans
if your pet falls ill before – or during – your break.
• Your pet will need a pet passport issued by the vet costing around
£100 to £250, says insurer GoCompare. So check your insurance
covers a replacement passport if it's lost or stolen. Find out more
about pet passports via gov.uk/take-pet-abroad/overview.
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Travelling abroad?
Check your policy
covers vets fees
Pet insurance checklist
When comparing policies, make sure you check:
• The excess and how this applies
• The rules regarding pre-existing conditions
• The annual claim limit
• The maximum age limit
• If the policy pays out if your pet is lost, stolen or dies
• Whether it includes third party cover in case your pet
bites or injures someone
• If it covers your animal abroad?
• Renewal terms, ie. is renewal offered throughout the
pet’s lifetime or an annual basis
Help with vets fees
If you're struggling with vet bills, you may be able to use the
services of an animal charity centre such as the PDSA, the RSPCA
or Blue Cross for free or assisted treatment.
To qualify you must live within the centre's catchment area and be
receiving certain benefits such as Housing Benefit. Find out more
at pdsa.org.uk, rspca.org.uk or bluecross.org.uk.
Tip: Your local council Animal Welfare service may offer free or
discounted neutering or micro-chipping. Also check with animal
charities such as Cats Protection for reduced-cost neutering. Find
your local council's contact details via gov.uk/find-your-local-council.
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The annual cost of
dog ownership
Source: Co-op Insurance
Bizarre pet insurance claims
• An owner of a curious cat in Milton Keynes got more than they
bargained for when leaving a cup of coffee by their laptop.
The moggy’s investigation led to one soaked keyboard,
£470 worth of damage and a cat in the doghouse.
• An overly enthusiastic dog in Slough decided he fancied a swim
and dived in after seeing some crystal-clear ocean water.
Unfortunately, the water was on the TV screen in the living room
rather than on the beach and the dog’s leap led to over £250
worth of damage.
Source: RIAS.
Did you know: Almost three quarters of vets report a surge in
dogs requiring medical attention after eating harmful human food
like chocolate over Christmas. So only feed pets food specifically
designed for them!
Source: Direct Line.
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A curious cat,
a soaked keyboard,
£470 worth of damage
Remember if you have
any questions about
pet insurance, just
ask me, Ciindy at
askciindy.com
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@askciindy
/AskCiindy