I have pet insurance for my much loved 13-year-old dog and this year’s premium has risen to £85 a month.
To add insult to injury, the annual premium now exceeds the maximum the insurer will pay out.
Surely this is unfair?
A Which? Money member
‘You could become your own insurer’
Simon Dicey, Which? insurance experts, says:
This does seem very steep, particularly as you would also have to pay an excess if you made a claim for your dog, plus a percentage of the claim itself.
Insurers are allowed to set their own prices and given your dog’s age, your provider presumably believes there is a higher risk of a claim being made.
Other insurers will also likely charge high premiums, though their claims limit may differ (our pet insurance reviews include insurers’ claims limits).
If you had a large claim in the early stages of this process, you would have to make up the shortfall yourself
An alternative is self-insuring. This involves you setting up a regular payment – which could be equivalent to your current premium – into an easy- access savings account.
This fund could be used to pay for future treatment.
The risk is that if you had a large claim in the early stages of this process, you would have to make up the shortfall yourself.
The Association of British Insurers found the average pet insurance claim was £685. However, claims for some conditions, such as elbow dysplasia for dogs, could top £50,000.
An interest-free purchase credit card could be a way to spread costs, though you’ll need to make a note to replace if it the interest-free period comes to an end and you haven’t needed it.
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