PET INSURANCE MADE SIMPLE

Transcription

1 PET INSURANCE MADE SIMPLE Working with the profession to simplify the language of insurance

2 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. Almost half of Britain s households own a dog or a cat

3 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. Most insurance will help cover advertising or a reward if a pet is lost or stolen

4 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. Third party damages could reach a staggering 40,000

5 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. 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.

6 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. 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.

7 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. There should be a policy for every budget large or small

8 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. Travelling abroad? Check your policy covers vets fees

9 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. The annual cost of dog ownership Source: Co-op Insurance

10 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. A curious cat, a soaked keyboard, 470 worth of damage

11 Remember if you have any questions about pet insurance, just ask me, Ciindy /AskCiindy