Ditching Pet Insurance To Save Money Could Prove Costly

By Alison Steed

PET OWNERS looking to make some cutbacks in the credit crunch should be careful about choosing their pet insurance as a policy they can lose without too many problems, according to financial statisticians Defaqto.

Pet insurance is not compulsory, but it can be a significant benefit if and when your favourite pooch or moggie gets itself into some trouble, or just falls ill.

Mike Powell, principal consultant for General Insurance at Defaqto, said: “Cancelling your pet insurance policy to save a few pounds could end up being an expensive decision. Consider the prospect of taking a beloved pet to get treatment only to find that the vet bill is far higher than expected. Without pet insurance the consumer may be faced with trying to find alternative ways of paying for the treatment.

"For those with inadequate savings, credit could be the only option, but is becoming more difficult to obtain. Getting a loan or credit card is not as easy as it used to be, and even if this was available, the costs involved in treating your pet could be significantly higher than the amount of credit that could be obtained."

Around a third of us admitted that we would consider giving a pet as a Christmas present, according to research from the Association of British Insurers (ABI) and there are going to be plenty of pets who will need to be taken care of long after the festivities finish. The ABI is concerned that people do not realise just how expensive vets’ bills can be if their furry friends need treatment.

Nick Starling, director of General Insurance and Health at the ABI said: "Owning a pet can be very rewarding.  Pets often become part of the family. However, if they need veterinary treatment, bills can run into hundreds or even thousands of pounds. Having pet insurance in place means that pet owners can have the confidence that their pets will get the best treatment without having to find money to cover large bills. This is even more important during hard economic times when household finances are already stretched."

However, despite the warnings, some pet owners are still not thinking carefully enough about how they would fund the treatment of their pet should the worst happen. Some owners, according to figures from PetPlan, are self-insuring by putting the price of a pet insurance policy into their bank account.

This would work if nothing happened before you have built up a sufficient fund, but given that could amount to around £10 a month being salted away, when a traffic accident involving a cat could result in a vet’s bill for treatment of around £576 on average, it would take you more than four years to save to pay that bill.

A spokesman for PetPlan said: “Interestingly, you are more likely to claim on your pet insurance than your car or household policies. Good insurance cover not only gives peace of mind, it gives opportunities, and with veterinary treatments constantly advancing, this means pet owners can enjoy a healthier, longer life with their four-legged friends.”

If you have not got the right cover, or sufficient savings in place, then you may have to face the worst option of all. Mr Powell said: "Unless consumers have significant savings or have purchased adequate insurance cover, the only possible option left might be to put their pet to sleep.

"The clear message is, if you can't afford to pay for insurance cover how can you realistically afford to pay a vet bill? If you are considering buying a pet or if you have one already, pet insurance should be seen as a part of the overall care for your pet."