WHY PURCHASE PET INSURANCE?
Are you unsure about the benefits of purchasing pet insurance? While there are many benefits to insuring your pet, I’ll share the particular instance that convinced me to do so. “Do they never get sick during work hours?” I received a sour smirk from the emergency vet clinic’s receptionist as she handed my credit card back. The good news was that my pup will soon recover from an allergic reaction to an insect bite thanks to an antihistamine shot. The bad news was that my credit card’s balance had suddenly been significantly increased by $600.
How a Pet Insurance Advocate Became a Pet Owner
Hello, I’m Mitch. Together with my extremely fantastic Jack Russell, Lulu, I reside in Sydney, Australia.In case you were wondering, I never intended to establish a website with reviews of pet insurance. But as I began to research pet insurance to get coverage for Lulu, I discovered that there were more than 20 brands to pick from, each with a complex set of advantages and restrictions – as well as a wide variety of rates.
I quickly made a sizable spreadsheet outlining the essential components of practically every strategy because I prefer to extensively examine decisions like this. And with the help of this information, I was able to find Lulu the finest pet insurance.
From there, I shared the spreadsheet with a few friends, who encouraged me to put my findings online. That started the ball rolling, and before I knew it, I’d added write-ups on every pet insurance brand I could find – and heaps more info besides.
Here are some of the key things that I think you should know about pet insurance for your dog or cat:
Types of Coverage
Most pet insurance brands offer three levels of coverage:
Accident Only – Covers treatment for injuries, such as lacerations or a broken leg. This is usually the cheapest form of policy, has little or no waiting period, and no maximum age limit. However, these policies generally do not cover any treatment for illnesses or other medical conditions.
Accident and Illness – This is the most common coverage level, generally providing benefits for when your pet is sick or hurt.
Comprehensive – Accident and illness coverage, plus some benefits for routine care, such as vaccinations and wormings. Many comprehensive policies also include higher annual benefit caps and/or reimbursement rates.
You should also know that there are a growing number of products – offered by some very well-known brands – that may look like pet insurance, but don’t actually provide coverage for treatment. They often are marketed as “wellness plans” or add-on products for other insurance policies. Always make sure that you read the Product Disclosure Statement (PDS) before buying any insurance plan so that you understand what you are getting for your money!
Key Coverage Terms
While every plan is different (and again – read the PDS!) here are the main criteria I use to evaluate pet insurance policies:
Reimbursement Rate – This is how much your insurance plan will repay you for treatment costs. Most plans will reimburse you for between 70% – 85% of your eligible expenses.
Excess – The excess amount is excluded from the claim; it reduces the amount that you are reimbursed. For example, if you have a $200 excess and an 80% reimbursement rate, you would receive $80 on a $300 claim ($300 claim – $200 excess = $100 X 80% reimbursement rate = $80 payment). Some plans apply the excess only to the first time your pet is treated for an accident or illness (or the first time each policy year), while others apply the excess to every visit to the vet. Excess amounts usually range from zero to $200, with some plans allowing you to pick your excess amount.
Annual Benefit Limit – This is the most that you can be reimbursed in a year, for all claims. Caps range from $5,000 all the way up to $20,000.
Sub-limits – In certain situations, your total benefits will be capped at a much lower amount, such as for paralysis tick treatment or cruciate ligament surgery.
Pre-Existing Conditions – If your dog or cat was treated for an injury or medical condition before you purchased pet insurance, any further treatment is usually excluded from your coverage. Purchasing pet insurance when your pet is young can help keep this list of exclusions short, as older dogs and cats have generally made more visits to the vet for various ailments and injuries.
Waiting Period – When you buy a pet insurance policy, you are usually covered for accidents right away, but will have to wait several weeks before full coverage kicks in. Most plans require a 21 or 30 day waiting period before providing benefits for illnesses, and longer waiting periods may apply for cruciate ligament surgery.
Price – Pet insurance can cost less than $30 per month all the way up to $100 or more per month. There is a wide range of factors that impact price. These include the type of policy, coverage levels, your pet’s breed, age and sex, your age and location, and GST and stamp tax. Some brands operate on thin profit margins, while others charge higher markups.
It can definitely pay to shop around! Start with my chart on pet insurance prices and benefits. It summarises the accident and illness plan for every pet insurance brand in Australia that I know about!
Next, be sure to read my pet insurance reviews for an overview of each plan that you’re considering. Remember, only you can decide which is the best pet insurance plan for your needs and budget.
