Millions of us are begrudgingly shelling out as much as £50 a month for some types of pet insurance policies, thanks to a rise in veterinary bills which have had a knock-on effect for insurers.
In 2013,
Sainsbury's Bank, one of the providers of pet cover said vets' fees were
escalating at 12pc per year, more than six times the rate of inflation.
Vets claim this
inflation-busting rise is the result of the development of new drugs and
medical technologies – which have helped many pets recover and live with
conditions that would have proved fatal in the past.
With vets' fees
rising sharply, the average single pet insurance claim now costs more than
£600, with pet insurers paying out £1.3m in claims every day, according to
figures published by the Association of British Insurers.
"Accident
only": very basic cover
This insurance
covers a pet if they need veterinary treatment after an accident, but not if
they have an illness. Some policies may also have a time limit for the
treatment and there is a fixed sum of money for each accidental injury to pay
for the treatment.
"Per condition
with a time limit": basic cover
The cover is one of
the cheapest. It will pay vets' fees for accidents and illnesses, but only for
a maximum of 12 months after your pet has been diagnosed.
Insurers of this
type of cover will often impose a maximum payout, so, if the cost of a
treatment reaches the limit, you will have to foot the remainder of the bill.
An insurer may
provide a policy, for example, with a maximum veterinary fee of £2,000 and a
time limit of 12 months. So, if the bill is more than £2,000 or you go after 12
months, you will have to pay the extra.
"Per
condition, no time limit": mid-level cover
With ''per
condition'' cover, insurers provide cover for a set fee limit, but do not
impose a time limit for how long the treatment lasts. The cover will continue
for any treatment as long as you renew the policy after 12 months. Re-occurring
illness or injury will not be covered by this type of policy.
"Lifetime":
high-level cover
''Lifetime cover''
is the most comprehensive type of pet insurance, but also the most expensive.
Insurers will set a high maximum amount per year – say, £10,000 – but you will
still have to renew the policy each year, and some insurers can refuse to renew
it.
For all types of
cover, pet owners must pay the "excess", or first part of any claim
themselves. You can choose to lower your premium rate by increasing your
excess, or vice versa. Usually, there will be an initial flat-rate excess
charge of around £50.
Peter Jones,
president of the British Veterinary Association, said that all pet insurance
policies had some exclusions. "The most common being pre-existing
conditions, anything related to pregnancy or birth, and any routine, preventive
or planned treatments such as vaccinations and spaying."
How much does it
cost?
The price of pet
insurance varies depending on where you live and your pet's breed and age.
For example,
Rottweilers are one of the most expensive dogs to insure based on their breed's
history of medical complaints.
If your pet has
been neutered and microchipped, the premiums will often be reduced.
We asked Comparethemarket.com to
crunch some numbers for us to work out the cost of an insurance policy for a
four-year old Labrador, who has been spayed, with the owners living in
Manchester, and a two-year old cat, who has been neutered, with owners living
in Devon. Neither animals have a history of a previous illness.
These are currently
the cheapest insurers for both the cat and dog, across the four cover types.
Cheapest policy for
the labrador
Accident Only – Paws & Claws £49.92
Per condition with
a time limit – Animal Friends £71.16
Per condition, no
time limit – Helpucover £177.96
Lifetime – M&S Bank £188.64
Cheapest policy for
the cat
Accident Only – Animal Friends £35.76
Per condition with
a time limit – Animal Friends £37.56
Per condition, no
time limit – Healthy Pets £47.88
Lifetime – Homebase £48.12
Should I take out pet insurance,
or just take the risk? How do the prices compare?
It really is up to
you. There is no NHS for pets, so even basic treatment can cost hundreds of
pounds. For instance, the average cost of treating a dog injured in a road
traffic accident is £674, and £300 for a cat.
More serious
conditions such as hip dysplasia can cost more than £4,000. And bills can run
up to more than £10,000 if the animal has cancer.
On the other hand,
your pet could be lucky and only have to go to the vet a few times in its
lifetime. As a result, the total spent on veterinary bills would be quite low.
If you chose to
take out monthly insurance for your pet, for an animal's entire lifespan, say
12 years, at an average policy price of £50 a month, then you would end up
paying more than £7,000 over the 12 years.
If you are on a low
income you can take your pet to the animals charitiesPeople's Dispensary for Sick Animals and the Royal Society for the Prevention of Cruelty to Animals , which offer treatment on a
means-tested basis.
The
Blue Cross can also help. It states on its
website: "Our veterinary services are available to pets whose owners are
on certain means-tested benefits or low incomes. You’ll be requested to bring
proof of your benefit along with photo ID or a utility bill, as well as a wage
slip or bank statement for those on low incomes."
Pet owners in
Scotland or Ireland can seek advice from the Scottish Society for the Prevention of Cruelty to Animals and theUlster Society for the Prevention of Cruelty to Animals.
The tricks insurers
use to trap their customers
Premiums for older
pets rise rapidly year on year, leaving pet owners in an uneasy position. They
could pay extortionate prices to have their pet covered; take Greg Rowan, who
had to pay out £285 a month to insure his British bulldog Busby with M&S Bank,
because of the dog's age and history of claims due to dermatitis and eye
treatment. Or pet owners could leave their pet uninsured, and pay the vets'
bills themselves.
Trying to switch to
a cheaper insurer is not an option either, as most will not cover pre-existing
conditions, or older pets.
Three ways to
reduce insurance costs
• Get your animal neutered/spayed
as this will help to lower insurance costs
• Insure your pet
when it is young and healthy, as pet owners will have to disclose any existing
medical issues their pet may have, and this will hike up your premium
• Get your pet
microchipped, some insurers will charge
a little less if the animal has been chipped
How to get the cheapest deals
Because animal
cover depends on several factors, it's impossible to say what the overall best
deals are. However, pet owners should compare prices by using comparison sites like
Gocompare and Comparethemarket to find the best deals on offer. Remember Aviva
and Direct Line are not included in third party sites, so you might want to
check them out separately.
What about other pets, like
rabbits, guinea pigs, horses?
It is possible to
insure all of these animals, but cover is a little harder to find. For rabbits,
horses, small birds, guinea pigs and so on, Petplan is one of the biggest insurers to
provide cover. If you buy the cover online you will receive a 10pc discount.
There are a few
more choices when it comes to horses. Some insurers to consider include; The British Horse Society, Petplan Equine andAnimal Friends
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