It’s a sobering thought for every pet parent: something goes horribly wrong one day and you’re faced with the choice between vet bills you can’t afford or having to put down your pet. It’s something many have lurking in the back of their mind because it can and does happen.

For pet owners, there are three ways of handling the possibility of this scenario becoming reality. The first is hoping it won’t happen. The second is creating and contributing to a ‘rainy day’ fund for Fido or Fluffy. And the third, more recently popular, is taking out pet insurance.

A savings plan is a good idea, but…

Disregarding the first strategy as too risky, PD Insurance Chief Operating Officer Michelle Le Long says it comes down to the pros and cons of saving or insuring.

“It’s financially savvy to create a savings regime to look after your pet when they might need serious attention from a medical professional. However, it has some glaring shortcomings along with its potential longer-term benefits,” she explains.

“The major issue is if you have just a few months’ worth of putting aside, say, $100 or $200 and there’s an accident or illness scare, you likely won’t have enough to cover the cost of treatment. You may even be thousands of dollars away from the total cost.”

Recent claims seen by PD Insurance illustrate the point:

• DOG: Skin allergy – $3,503 treatment bill
• DOG: Injuries from being hit by a car – $23,387 treatment bill
• DOG: Ingestion of tennis balls – $7,006 treatment bill
• CAT: Infection caused by a dog bite – $6,606 treatment bill
• CAT: Broken hip caused by fall – $8,996 treatment bill
• CAT: Respiratory tract infection – $3,338 treatment bill

“Then there’s the risk of another health issue occurring soon after, before you’ve recovered financially from the first hit. It’s in no way uncommon for PD to see pet owners make multiple significant claims within months.”

There is, therefore, a substantial but diminishing aspect of risk in a savings plan. The major benefit comes with time, but still involves a hefty element of luck.

“If you’re 10 years or more in, you might have a tidy lump sum stashed away for your pet,” says Le Long. “But the chances of going that long, or longer, without a major incident are slim.”

Is insurance a better idea?

The emerging option is taking out insurance. ‘Emerging’, as Le Long says many pet parents haven’t yet seriously considered the option – or if they have, there’s a belief it’s too expensive.

According to Moneyhub, while pet insurance is growing in popularity, just 1 in 10 cat parents and 1 in 5 dog parents have cover.

Veterinary surgeon Dr. Cath Watson explains why many vets are firmly behind the idea, saying, “Pet insurance helps make it about not what you can afford, but what is best for your pet.”

That, in turn, helps practices. “Pet insurance gives vets the security to invest in new technology and services as practice income increases. That means better facilities, better training, and better incomes for vets and vet nurses, who will stay in the profession.”

“Not to mention better outcomes for pets thanks to more advanced treatment.”

And perhaps most importantly, Dr. Cath says pet insurance can mean avoiding the greatest fear of pet parents and vets: “It also means we don’t have to euthanise animals purely because of cost and can instead help them.”

The pros of a pet policy include immediate cover for many of the costliest of catastrophes (or dogostrophes) and even wider cover after waiting periods pass.

“The earlier you start insurance, the more value you’ll potentially extract from it as you’re much more likely to have cover before medical conditions emerge. Pre-existing conditions aren’t covered by pet insurance in New Zealand, so starting early on means you’ll probably have broader cover over your dog’s or cat’s lifetime,” adds Le Long.

Pros and cons

Depending on the level of cover selected, there will be annual limits to how much you can claim, with typical caps including $5,000, $10,000 and $20,000. Cover types range from accident only through to comprehensive plans covering diseases, allergies and other health ailments, emergency and other injuries, potentially third party liability and/or even dental issues.

The cons are costs (the premium plus excess and/or co-payments your insurer charges), limits you could encounter for certain conditions annually, and that pre-existing condition clause.

“Getting the benefit of insurance depends on continuing to pay your policy fee every month but doing so means you’ll get cover throughout the lifetime of your pet,” Le Long confirms. “That’s serious peace of mind at any stage of your pet’s aging process.”

“For some pet parents an ongoing payment can seem restrictive – but remember, when you take on a pet you always have other fixed monthly costs for things like food and grooming. It’s the big, unexpected costs that really hurt. Think about a $10,000 bolt from the blue and that every pet will need medical attention throughout their life.”

The last word goes to Dr. Bronwen MacRae, Royal Canin Chief Health Officer, who says for her personally, pet insurance is a non-negotiable.

She says, “As a veterinarian, I see pet insurance as an important part of a pet’s healthcare. Often a pet’s treatment options are restricted by the owner’s financial constraints. I’ve had my dog insured from the very first day I adopted her, because I want the peace of mind that if she needed any medical care, I would not have to worry about the cost of treatment.”

Media contact 

Leandri Smith – The Mail Room 
027 365 9003 | [email protected]