1300 489 873With so many providers, choices to make, and sneaky fine prints to look out for, pet insurance can get a little bit of a headache, to say the least. If you’re trying to navigate through the jungle of endless information, don’t worry; we’ve all been there, too. We get just how overwhelming and puzzling it can be to grasp pet insurance.
But fear not!
We’ve broken down all the essential bits and bobs to help you become a pet insurance guru. From outlining the different policy structures to sharing tips for switching providers, everything you need to know about pet insurance is right here. Jump into this guide to learn exactly how pet insurance works.
Understanding the Basics of Pet Insurance
Pet insurance is overloaded with jargon that leaves so many fellow pet parents confused and lost. However, once you get to know what all the key terms mean, it really isn’t all that complicated.
Here are some terms you’ll often hear getting thrown about in the world of pet insurance:
Premiums
An insurance premium is the price you pay for a policy. They can be cheaper or more expensive depending on a few factors, like the type of pet you have, how many claims you make, your pet’s health history, and the level of coverage you choose.
In most cases, you can actually knock a few dollars off your premiums if you pay annually rather than monthly. For example, PetsOnMe treats customers to a 5% discount when they pay annually.
Annual Limits
Your annual limit is the maximum amount of money that your insurer will cover in a policy year, sort of like a fixed budget. Once you hit the limit, you’ll be left to cover any onward bills with your own pockets until the policy year resets. If you go for a higher annual limit, you’ll likely pay a bigger premium. But, you will be much more financially protected.
Benefit Percentage
The benefit percentage is the amount of eligible vet bills that your insurer covers. For example, if you’ve got a benefit percentage of 80%, you’ll be left to pay the remaining 20% of the vet bill yourself. So, the higher the benefit percentage, the less you pay out of pocket. But be cautious that a higher benefit percentage might come with a pricey premium.
Excess/Deductible
The excess, also known as the deductible, is the fixed amount you’ve got to pay before your insurer takes care of the rest. They can be paid per claim or paid once every policy year. We’ll let you in on a secret: if you go for a higher excess, your premium will be cheaper. But be wary that you’ll have to pay more from your own pockets with every claim you make.
Sub Limits
Sub-limits are like spending caps. They stop you from going overboard on claims for specific treatments, like cruciate ligament surgery. This helps insurers keep tabs on high expense treatments and control costs.
Waiting Periods
When you start a new policy, it’s pretty unlikely you’ll get covered the very second you apply. Usually, you’ll have to wait a period of time before your coverage kicks in. This can be anywhere between 48 hours to 180 days.
If you pick our Accidental Plan at PetsOnMe, you can actually get instant cover. We also waive our waiting periods if you’ve held a policy for a year or more with no interruptions.
Different Types of Pet Insurance Coverage
Every pet insurance provider has their own fancy name for their coverage options. But, when you take a closer peek, they actually aren’t all that different at all. When it really comes down to it, pet insurance policies tend to follow the same three structures: accident-only, accident and illness, and comprehensive coverage.
Let’s check out these three options:
Accident-Only Coverage
Accident-only policies are the most basic level of coverage you can get. They only cover vet bills for select accidental injuries that your dog or cat runs into. Because you only get the basic stuff included, you get to pay the least for this type of policy, making it a great choice for all the pet parents out there on a budget.
Accident and Illness Coverage
Accident and illness pet insurance covers accidental injuries and illnesses, giving you the best of both worlds. Whether you need to treat your fur baby’s chronic conditions or fix a clumsy injury, this policy type will keep your pockets safe from related vet expenses while ensuring your four-legged family gets the exact medical care they need.
Comprehensive Coverage
Comprehensive policies give you the most eligible coverage, making them a perfect fit for VIPs (very important pooches). If you’ve got a senior pup or a high-risk feline, comprehensive coverage is a must-have. While this kind of policy might have the biggest price tag, it will definitely save you the most money on out-of-pocket vet expenses, making it well worth it!
Claims and Eligibility
The types of eligible treatments that you get to claim are down to the insurer you choose, the type of coverage you get, and the terms detailed in your product disclosure statement (PDS).
Your eligibility to make a claim is down to factors like your pet’s breed, age, and health history. It’s also dependent on waiting periods, exclusions, and your insurer’s conditions in the fine print.
Most policies will cover a bunch of pedigree breeds and mixed breeds, puppies and kittens over a certain age (typically 8 weeks old), and senior pooches and felines. You’ll only be allowed to submit a claim after your waiting period is up, so patience is definitely needed.
These days, it’s pretty easy to make a claim. All you really need is your policy number, supporting documents (like vet invoices), and, occasionally, medical history. Some insurers will pay your vet directly, while others will reimburse you after you’ve covered the cost.
Common Exclusions
As much as we’d all love to claim every vet bill we get, we can’t. Thankfully, the most costly stuff does tend to get covered by insurance policies, so you only really need to worry about the cheaper bills. Here’s what most insurers don’t include in their policies:
- Pre-existing Conditions: Any health problems your pet needed before your policy started is a pre-existing condition. This means any related treatment your pet needs for that condition won’t be covered by your new policy.
- Routine and Preventative Care: Regular check-ups, vaccinations, flea treatments, and deworming aren’t covered by most policies. But you can sometimes pay a little extra and get them added to your policy.
- Breeding Costs: Any expenses related to breeding, like pregnancy check-ups and birth support, won’t be included in your insurance plan.
- Behavioural Therapy: If you’ve got a naughty pooch or a feisty feline that needs some behavioural training, you’ll most likely have to pay for that yourself.
- Alternative Treatments: Niche alternative treatments, like acupuncture and chiropractic care, are rarely included in policies.
Switching Providers: Pawsome Tips
If you’re moving over to a new policy, but not sure how to go about it, we’ve got some handy advice worth using — we are the experts after all!
First things first, before signing up for a new policy, always browse and compare your different options because you might get a better deal for the same amount of coverage somewhere else.
Once you’ve chosen a new policy, you should always check for coverage gaps before signing up, to make sure you’re prepared to be out of a policy for a certain amount of time. It’s also worth looking for no cost transfers, meaning you won’t be charged for cancelling your policy early.
You also need to transfer your pets medical history, to make sure you’ve got all the essential documents ready when the time comes to switch providers.
Enjoy Fuss-Free Pet Insurance with PetsOnMe
We’ve made pet insurance a walk in the park at PetsOnMe. Our policies are designed for cats, kittens, dogs, and pups of all breeds. You get to pick from a selection of fully transparent, multi-award-winning policies that have no lock-in fees, sneaky little fine prints, or outrageous premiums.
Find a paw-fect policy for your fur baby today at PetsOnMe!
