Insurance or Save?

Understanding Dog Insurance

 

 

 

 

 

 When it comes to planning for your dog's health, you have two main options:

1. Taking out a pet insurance policy

2. Setting up a dedicated savings account with a regular monthly deposit

 

It's worth comparing the monthly cost of insurance with the amount you could save. In some cases, especially if your dog remains healthy, paying for vet bills directly from a savings account may be more cost-effective.

 

There are several types of pet insurance policies:

  • Lifetime policies – Cover ongoing conditions for the life of your pet (as long as you renew)
  •  Time-limited policies – Cover illnesses for a limited period (e.g. 12 months)
  • Maximum benefit policies – Offer a fixed financial limit per condition
  • Accident-only policies – Cover only injuries caused by accidents

 

Benefits of Pet Insurance

  • Peace of mind if your pet becomes ill or injured
  • Financial support to cover expensive veterinary bills
  • Helps you make decisions based on your pet's needs, not just cost
  • May allow you to seek medical help faster
  • Some policies offer additional benefits, such as:
    • Advertising and reward costs if your pet goes missing
    • Legal cover if your dog causes injury or damage

 

Downsides to Pet Insurance

  • Can be costly, especially with multiple dogs
  • Certain breeds, particularly brachycephalic (short-nosed) breeds, are more expensive to insure
  • Policy restrictions may apply:
    • You often cannot claim twice for the same condition
    • Claims may be limited to one per condition per year
    • Duplicate claims across multiple policies are not allowed
    • Pre-existing conditions are usually excluded
    • Your dog's age and breed can significantly impact the premium
  • Changing insurers can result in:
    • New waiting periods
    • Loss of cover for previously treated conditions
    • Insurance premiums typically increase after you make a claim, as insurers view claims as a sign of future risk

 

Before choosing a pet insurance policy, it's essential to understand exactly what is and isn't covered. Asking the right questions can help you avoid unexpected costs and disappointment when you need support most. Here are some key questions to ask:

1. Do you pay the vet directly?

  • Some insurers will settle the bill directly with the veterinary practice, while others require you to pay upfront and claim back later.

2. What is the claims process and expected timeline?

  • Ask how to submit a claim, how long it typically takes to process, and whether claims can be made online.

3. Do you provide cover for older pets?

  • Some policies limit cover as pets age or may not accept new policies for pets over a certain age.

4. Will premiums increase after a claim?

  • Understand how making a claim might impact your future premiums.

5. What is the policy excess, and does it change with age or per condition?

  • Check if the excess is a fixed amount, a percentage of the claim, or if it increases as your pet gets older.

6. Are congenital or hereditary conditions covered?

  • Important for purebred pets or breeds prone to specific health issues.

7. Is dental treatment included?

  • Dental issues can be costly and are often excluded unless related to an accident or injury.

8. Are behavioural treatments covered?

  • Some policies cover behavioural therapy or referrals to animal behaviourists, but many do not.

9. Are there any restrictions on medications or long-term conditions?

  • Check if there are limits on how long or how much they will pay for chronic conditions or recurring prescriptions.

10. Is there a time or monetary limit on how long the policy will cover an ongoing condition?

  • Lifetime policies usually offer the most comprehensive long-term cover, but others may stop paying after 12 months or once a financial cap is reached.

Real-World Example: The Importance of Reading the Fine Print

One dog owner recently discovered the importance of thoroughly checking what's included in their policy. Despite regularly worming their dog, the insurer denied a claim for a heart-related condition because the wormer used didn't protect against all types of worms. Unfortunately, some budget wormers only cover specific parasites like tapeworm, while broader-spectrum options are needed for full protection. This exclusion was buried in the policy's small print, leaving the owner emotionally and financially distressed.