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Comparing and reviewing pet insurance

Tips to help you decide which pet insurance plan is right for you

When comparing pet insurance from different providers, consider the following advice which has been adapted from Choice Magazine.

Is it for you?

If nothing is too good for your furry friend, then Pet Insurance can be a worthwhile investment. If your pet is accident prone or particularly active, then pet insurance can help cover the cost of the inevitable vet’s bills that will arise. Having pet insurance in place can mean the difference between life and death of your pet. A difficult choice, but one that many pet owners are forced to make each year, if they are faced with the possibility of a hefty vet’s bill that they simply cannot afford to pay.

How much does it cost?

Choice Magazine compared premiums and benefits from and range of providers, and reported that the premiums for cats average at about $200 per year for accident cover, and $410 for accident and illness cover. For dogs, the average cost is around $390 for common breeds, but more high risk breeds (eg bulldogs), accident and illness cover averages about $550 per year.

Premiums are generally based on the breed and age of your pet. Get a quote and compare to see how affordable pet insurance can be with Petsecure.

What are the alternatives to pet insurance?

If insurance is not for you, then you would be wise to compare it with the option of setting aside some cash each month to ensure you have the money on hand should an unexpected accident or illness strike. You need to be disciplined to ensure that you build up a fund with a few thousand dollars at least. Of course your credit card could also come in handy, but when you factor in the added cost of interest rates, this could be quite expensive. 

Choose wisely

Once you have your pet insurance in place, it’s difficult to move from one insurer to the other, as pre-existing conditions are excluded in new policies. This means that if you switch from one pet plan to another, anything that you have claimed for with your current insurer would not be covered by the new insurer. So do your homework, review the insurance, and compare the premiums and options available. Choose wisely, taking account of your budget and needs, as you need to think about being in it for the long haul, because as your pet ages, the more valuable the cover is likely to be for you.

How much are vet fees?

The following is a sample of pet insurance claims from The Hollard Insurance Company during 1 July 2010 to 30 June 2011. Includes the cost of medicines, vet fees and other associated expenses.
 

It’s worth noting that whilst the average claim in some cases is reasonably low, if the costs blow out, the numbers can run into a few thousand dollars. In addition, there has been significant claim cost increases in recent years, brought about through advances in technology, as well as normal inflationary factors. Remember there’s no Medicare for pets!

Choice recommends

Choice Magazine compared and reviewed Australian pet insurance policies on the market, comparing premiums, excesses payable, co-payments, benefits, exclusions and reviewing the pet insurance cover in a range of scenarios –for cats, dogs, various ages and breeds.

In 3 of the 4 plans (Accident only – cat and dog cover, Accident & Illness – dog cover), Petsecure was recommended by Choice Magazine. Important to note that Choice did not factor in discounts that are available – such as the Petsecure discount for seniors, assistance dogs and the multi pet discount. Choice Magazine also highlights that with some insurers (for example Pet Plan) benefits drop significantly after a certain age (7 years or 10 years), meaning that the overall value drops when you need to make a claim. Remember the older your pet, the more likely you are to need to make a claim!

Here are some things to look at when you are comparing pet insurance:

• The maximum annual benefit payable (Petsecure pays up to $12,000 per year for accident and illness cover, and $8,000 per year for accident only cover)
  
• Limits on benefits payable (with Petsecure there is no limit on individual claims, with the exception of tick paralysis where the benefit is limited to $500 per year)
  
• The percentage of the eligible vet’s bill that is payable (Petsecure offers 75% or 85% options)
  
• Excess payments (Petsecure has no excess payments)
  
• Double dipping - some pet insurance have an excess as well as limiting the percentage of vet's bill that is payable, for example Woolworths Pet Insurance.  Remember you get what you pay for!
• Discounts available, and the period to which they apply (Petsecure offers a maximum 10% discount off second and subsequent pets, assistance dogs and seniors. Petsecure discounts continue for as long as the policy is kept continuously in force).
  
• Is the policy guaranteed renewable (Petsecure guarantees lifetime cover)
  
• Is there an option to cover routine care benefits, such as vaccinations? (Petsecure offers optional Wellness Care with the Accident & Illness pet insurance plan)