Pet insurance excess is an important topic for pet owners to understand. In simple terms, excess is the amount that you agree to pay towards the cost of any claim made on your pet insurance policy. The higher the excess you agree to, the lower your monthly premiums will be. However, it is important to understand how excess works and how it can impact your coverage and costs when making a claim. In this article, we will explore the ins and outs of pet insurance excess and how it can affect your pet’s healthcare.
What is Pet Insurance Excess?
Pet insurance excess is the amount that you pay towards your pet’s medical bills before your insurance policy kicks in. This amount is agreed upon when you sign up for the policy, and it can vary depending on the type of policy you choose. Essentially, the excess is a way for insurance companies to share the cost of pet care with their customers.
How does it work?
Let’s say your pet needs a medical procedure that costs $1,500, and your insurance policy has an excess of $500. In this case, you would be responsible for paying the first $500 of the cost, and your insurance company would cover the remaining $1,000. If your pet requires multiple visits to the vet, you may need to pay the excess more than once.
Why is it important?
Pet insurance excess is an important factor to consider when choosing a policy. A higher excess generally means lower monthly premiums, while a lower excess means higher monthly premiums. It’s important to find a balance that works for your budget and your pet’s needs. Keep in mind that if you have a high excess, you’ll need to be prepared to pay more out of pocket if your pet requires medical care.
Types of Pet Insurance Excess
There are two types of pet insurance excess: fixed and percentage-based.
Fixed Excess
A fixed excess is a set amount that you agree to pay towards your pet’s medical bills before your insurance policy starts covering the cost. This type of excess is common in pet insurance policies, and it’s usually between $50 and $500.
Percentage-based Excess
A percentage-based excess is calculated as a percentage of the total cost of your pet’s medical bills. This means that the amount you pay towards the excess will vary depending on how much the treatment costs. For example, if your pet needs a $1,000 procedure and your excess is 10%, you would need to pay $100 towards the cost.
Choosing the Right Excess for Your Pet
Choosing the right excess for your pet can be tricky. It’s important to consider your budget and your pet’s medical needs when making this decision. Here are some things to keep in mind:
Budget
If you’re on a tight budget, a higher excess may be the right choice for you. This will lower your monthly premiums and make pet insurance more affordable. However, keep in mind that you’ll need to be prepared to pay more out of pocket if your pet requires medical care.
Medical Needs
If your pet has pre-existing medical conditions or is prone to certain health issues, it may be worth choosing a lower excess. This will ensure that you’re covered if your pet needs medical care related to their condition.
Age of Your Pet
The age of your pet can also impact your excess. Older pets are more prone to health issues, so it may be worth choosing a lower excess to ensure that you’re covered if your pet requires medical care.
FAQs for How Does Pet Insurance Excess Work
What is pet insurance excess?
Pet insurance excess refers to the amount of money that you will pay towards vet bills when making a claim. It is a predetermined amount that you agree to pay when you sign up for pet insurance. The excess amount can vary depending on the pet insurance policy you choose.
How does pet insurance excess work?
If you make a claim, you will need to pay the excess amount before your pet insurance company pays the remaining balance of your claim. For example, if your pet insurance excess is $200 and your vet bill comes to $500, you will need to pay $200 and your insurance company will pay the remaining $300. If you have a higher excess, it means that you will need to pay more towards the cost of treatment.
What is the purpose of pet insurance excess?
Pet insurance excess is designed to reduce the cost of monthly premiums. By choosing a higher excess, it can help reduce the cost of your monthly pet insurance payments as you will be taking on more of the risk yourself. Having an excess in place also helps to prevent pet owners from making small claims for minor injuries or illnesses, as it is only financially worthwhile to claim for more significant vet bills.
Can I choose my pet insurance excess amount?
Yes, most pet insurance companies will allow you to choose the excess amount that you feel most comfortable with. It is important to remember that choosing a higher excess than you can afford to pay if an emergency happens means you will be caught short when you least expect it.
Can I change my pet insurance excess once I have signed up for a policy?
You should be able to change your excess amount after you sign up for your policy. However, there may be an administration fee charged by your pet insurance company to make this change. If you are unsure about which excess amount to choose, speak to your insurance provider for advice.
