Avoid rip-offs and claw back savings on pet insurance

Many owners are struggling in the face of soaring premiums and costly medical procedures, writes Lauren Shirreff

Owning a pet is becoming more expensive than ever before, and not just because inflation is pushing up the price of pet food, grooming services and kennels.

Independent vet surgeries up and down the country have been bought out by private equity-backed chains, with prices skyrocketing as a result. Many people have found they simply can’t afford to foot the bill for their pet’s illnesses and accidents.

This has in turn sent annual pet insurance premiums into three figure sums – and the price is only going up. According to the Association of British Insurers ( ABI), the average cost of insuring a dog or cat for accident and injury is about £10 a month, or £125 a year. A horse costs about £50 a month to insure, reports insurance company HelloSafe.

The cost can mount up to much more than this, however, and increases to your premium can come as a shock.

Pet insurance company Petplan put up the cost of some premiums on its Covered For Life plan by 20pc in May, leaving one pet owner with an extra £100 on their annual bill. Some pet insurance premiums from DirectLine increased by almost 50pc last year alone. Separate figures quoted by The Daily Telegraph recently showed that dogs and cats are now more expensive to insure than a house.

Given the dramatic increase in cost, many pet owners are seeking to make savings. So how can you make sure that your pet’s health is looked after, without breaking the bank?

Get familiar with your policy terms

There are lots of pet insurance policies to choose from, and you will need to make sure the one you pick suits not only your pet – an iguana will likely need quite different cover to a guinea pig – but also your budget.

“There’s no NHS if your pet needs medical treatment, and costs can be exorbitant – treatment for arthritis in a dog can be upwards of £ 2,000, for example,” said Hannah McEwen, money editor at MoneySavingExpert.

“Unless you have enough cash squirrelled away to comfortably cover unexpected costs, you could have some tough choices without pet insurance in place.

“Exactly how much it will cost to cover can vary enormously, and will depend on the type, breed and age. You’ll also need to factor in whether you want basic or comprehensive cover, and how much excess you’re willing to pay before your insurer steps in to pick up the bill.”

One common mistake made by pet owners is the assumption that their insurance policy will cover all health conditions, accidents and illnesses their beloved animal may face. Unfortunately this is far from the truth, said Saarrah Mussa, insurance expert at MoneySuperMarket.

“There are four common types of pet insurance to choose from, each with different levels of cover and cost,” Ms Mussa said. “A lifetime policy will cover your pet for their whole life for most of their medical needs, and this includes cover for any conditions that your pet may develop while you’re insured, making it a good investment for younger pets.”

There is also time-limited insurance, which offers a fixed sum for each illness or injury your pet gets. “Your pet will be covered for a limited term per condition, usually 12 months,” said Ms Mussa. “With this type of cover, the limit is reached either at the end of a year or when you reach the maximum benefit.”

It is also possible to get cover per condition, also known as “maximum benefit” cover.

“This means you will get a fixed amount that your pet will be covered for, and you can claim per condition. There is no time limit on how long you can claim,” she added.

When making a choice between these policies, you will need to weigh up the age of your pet and the likelihood of them developing health conditions as they get older. Certain animals and breeds are more susceptible to genetic health issues, whereas others may be fine with just basic cover.

“Basic cover carries a maximum payout per condition, which when reached means you’ll no longer be able to claim for the same condition in future,” said Ms McEwen. “Whereas comprehensive cover, or lifetime cover, has annual payout limits per condition – this could be better if your pet develops a recurring or chronic condition.”

Accident-only cover is often the most affordable option, but it doesn’t provide cover for hereditary health issues or any illnesses.

Shop around for cheaper deals

The most obvious way to save money on your pet insurance is to shop around for a good deal, said Ms McEwen.

“The price of pet insurance has been rising, so it’s important to compare as many quotes as possible across different comparison sites. Some big providers, such as Direct Line and Petplan, won’t appear on these, so you’ll have to go direct,” she said.

“Insurers might offer vouchers to entice you in, but it’s best to view these as a nice extra, rather than the deciding factor. Always make sure the cover’s right for you, and that you’re clear on what will and won’t be covered.” Shopping around has worked well for those purchasing insurance through Compare the Market, which is paying £120 a year on average for their pet insurance – the same price as in August last year, despite rises across the sector.

“The average pet insurance premium for people taking out a quote through our website is £120 a year,” said Anna McEntee, director at Compare the Market. “Dogs are generally more expensive to insure than cats, with the average premium for dogs standing at £138 a year.”

This figure can change depending on your dog’s health and age, however.

No one wants to pay more than they need to for pet insurance, but be wary of just going for the cheapest policy, as it could end up being more expensive in the long run if it doesn’t include the cover you need.

“While comparison sites are good for cats and dogs, for horses, rabbits, parrots and reptiles and other pets you’ll need to manually compare quotes directly with specialist insurers,” said Ms McEwen.

“Regardless of the type of animal, if you do decide pet insurance is right for you, beware of switching if your pet has an existing condition – most new policies won’t cover these, whether you’ve claimed for them or not.”

Consider increasing your excess – and pay annually

Increasing your excess – the amount you pay when you make an insurance claim – can reduce the cost of your premium, but you will need to make sure you can cover this higher cost. Such a move may prove expensive if you have to make multiple claims and pay the excess every time.

If you have the lump sum to hand, it can also work out significantly cheaper to pay for your insurance annually rather than monthly.

Take care of your pet’s health

Healthier pets will be easier and cheaper to insure than older pets or pets in ill health, so it really does pay to take as good care of your pet as possible.

A simple way to cut the cost of insuring your pet is to make sure that they are neutered or spayed, and microchipped.

Taking care of this may cost you in the short term, but doing so means that your pet is less likely to develop health conditions such as testicular or uterine cancers or uterus infections.

If your pet accidentally gets pregnant, a C-section will often cost about £800, and very few insurance policies will cover these costs.

It is also crucial to keep their jabs and vaccinations up to date, and take them for annual health checks. Failing on either count can invalidate your insurance policy if your pet develops a condition that would have been preventable.

Learn to haggle when you renew

A tip that works for all kinds of insurance, get comfortable with trying to negotiate a lower price with your insurer when it’s time to renew – often threatening to leave and get a policy elsewhere will be enough.

Check to see whether the insurer has raised your premium without a good reason, or is claiming your pet has a condition it doesn’t. In this case, you should make a complaint with the provider – and your vet may be able to help back you up.

How not to get ripped off by your vet

One reader, now retired after a 35-year career as a vet, has shared some expert advice on making sure that you are charged fairly for your pet’s care.

“Present day veterinary practice has thrown most of the standards out of the window that I was taught when I qualified so many years ago,” he said.

“Avoid city practices, and if possible find a large animal practice that treats farm animals. Farmers have a common sense attitude and will not be ripped off,” he said.

“Find out how many practices are linked with your chosen practice, as big chains have costs from things like large clinics and car parks, which inevitably get passed down to owners.

“Do not hand your pet over to the practice until you have an estimated cost of the treatment, in writing, or in an email sent to you.

“Unfortunately, if putting your pet to sleep is a possibility, you should prepare to be able to take your pet’s body home with you, as some vets today will withhold cremation until huge bills are paid – which I find absolutely disgraceful.”

‘Exactly how much it will cost to cover can vary enormously, and will depend on the type, breed and age’

Dogs are generally more expensive to insure than cats, according to Compare the Market