CHEAP PET INSURANCE
What is cheap pet insurance?
Here we will define cheap pet insurance and at the bottom
keep reading below so we can show you how you may make pet insurance cheaper.
Look out for the 💸 for tips on how to lower the cost of a pet insurance premium
If you are like us, you probably love a deal.
But our experiences have led us to understand the age-old saying”
“In life, usually you get what you pay for.”
Years ago, we did offer lower-priced products with less coverage. But we found that this led to tears in the instances when people thought that they were covered for an accident and actually they were not.
The main problem we saw was that cheaper insurance products had limited coverage and features.
But first, let’s see definition of cheap
Before we get into what cheap or low price pet insurance is, let’s take a look at the definition of cheap.
According to a quick google search (definition from oxford languages^), cheap is defined as:
Low in price, especially in relation to similar items or services
Of little worth because achieved in a discreditable way requiring little effort
In general, the term “cheap” refers to something that is priced lower than average or of lower cost or value when compared to other products or services available to consumers.
When we talk about products, “cheap” usually refers to items that are inexpensive, affordable, or budget-friendly. These products may be made with less costly, lower-quality materials or may lack some of the features or benefits of more expensive alternatives. In other cases, a similar product may not be priced as high if the brand name is not well known. An example of this may be a cheap knockoff of one of your favourite brands.
If we refer to services, “cheap” typically refers to services that are priced lower than average or considered a bargain. However, it’s important to note that “cheap” services may not always offer the same level of quality, care, attention to detail, expertise, or reliability as more expensive options. That is very much what we found out when it comes to what we have offered in the past compared to our offerings today.
The low-priced pet insurance options we offered before were not of the same level of quality or reliability. That’s why we don’t offer them anymore.
Now, we do understand that some people may have their own concept of what is cheap, so, let us use the term “low in price” or “low priced” in relation to other similar pet insurance offerings, instead of the word “cheap.”
We no longer have very “low in price” pet insurance offerings.
Why? Because to lower the price, we would have to compromise on the coverage or service we deliver. Remember we do not send calls or customers service offshore. You will only ever communicate with an Australia Pet lover, just like you.
Again, we have done that in the past and found that it didn’t work, as our members were thinking they were covered for conditions that they were not covered for, which led to tears.
So we decided to only offer quality pet insurance with no sub limits, serviced by only Australian staff. We allow our members and policy holders to customise the cover to make it more affordable.
An example of low-priced pet insurance – accident only cover
In the pet insurance world, accident only cover is considered one of the lowest-priced insurance options.
There are still some low-priced pet insurance products available in the market, and they usually fall into the category of “accident only cover” or “accident only pet insurance”. This can start from as low as around $20-$30 a month for dogs and potentially even less for cats.
In the past, when we did offer accident only covers, we found the problem was the shorter list of the conditions it covered. Which was okay at the point of purchasing but when faced with an unexpected incident and you are in the emergency vet, it’s hard to remember exactly what conditions are covered, and what options you did and didn’t choose.
When it comes to Pet Insurance, what is an accident?
It may sound like an accident to you, but is it? When asked about conditions such as ingestion of a foreign object (if a dog or cat has swallowed something they shouldn’t), some people would think that this is an accident, but it may not be for pet insurance.
In many pet insurance policies, you will find that ingestion of a foreign object is considered to be a cause for an illness and is therefore not claimable under accident only covers.
This has proven to be a shock to policyholders who may have purchased an accident only cover, believing they are protected for the “accident when my dog ate something it shouldn’t.”
What’s the difference between Accident only cover and Accident and Illness cover? To the general public, we found accident only cover may sound like it covers vet costs if your pet is in an accident, such as being hit by a car or injuries from dog fights or snake bites. Accident and illness cover may sound like it covers accidents as well as sickness such as diabetes or cancer, provided it isn’t a pre-existing condition (link to what is a pre-existing condition).
It’s very important to note that what sounds like an accident to general public and what is actually covered as an accident under a pet insurance policy may be different. The only way to be sure is to contact the insurance provider and confirm.
Accident only covers led to tears, so that is why we no longer offer it.
We no longer offer low-priced or, in our eyes, “cheap pet insurance” that limits the coverage too much.
Our current pet insurance covers both accidents and illnesses and has one list of conditions covered under the policy.
This means, even if you chose an annual benefit limit of $5,000 instead of $25,000, the list of conditions covered is exactly the same. It just means the total amount claimable in the 12-month annual period is $5k, not $25k.
As mentioned before, we do not and probably will never again offer another product that limits the conditions covered under the policy, just to make it an cheaper option compared to other products in the market.
How much can Pet Insurance cost?
If you were looking for cheap pet insurance (according to the definition of cheap we looked at before), we would agree that there are cheaper options out there for pet insurance.
Pet insurance for a cat can range from $15 per month to $200+ a month.
Pet insurance for a dog can range from $20 per month to over $200+ a month.
But why is there such a difference in pet insurance premiums?
It’s simply because not all pet insurance products are equal. If you were to make the same claim under different pet insurance covers, what you may get back can vary greatly. There are also multiple factors that can influence pet insurance premiums as they are determined based on your pet, as well as your situation,, such as your pet’s breed and where you live.
With so many options out there, it can be really confusing and hard to tell the difference between pet insurance offerings. Which makes it even harder to decide which is right for you and your pet.
If you want to know more about pet insurance, please see our ultimate guide on how to compare pet insurance policies.
MAKE PET INSURANCE CHEAPER
How can I lower the cost of pet insurance, or reduce the insurance premium?
The amount you pay for pet insurance each month or year, otherwise known as the insurance premium can be reduced by changing the options, such as annual limit, benefit percentage and annual excess. In general, the more coverage you select, the more expensive your premium will be.
We will quickly break down the main mechanisms that affect the pet insurance premiums. When we mention the term “cheap” or “cheaper” below, we refer to the ability to make the premium less than a more expensive alternative.
Look out for the 💸 for tips on how to lower the cost of a pet insurance premium
In the market, the total amount you may be reimbursed during a 12 month period can range from $3,000 to over $20,000.
💸 The higher the annual limit, the higher the premium, and the lower the annual limit, the cheaper pet insurance premiums will be.
Petsy offers some of the lowest and, conversely, highest annual limits in the market with no sub-limits. Remember, $10k with sub-limits is not the same as $10k without sub-limits.
Our coverage options are entirely up to you to choose from, and we have $5k, $10k, and $25k options available.
In the market, the total amount you can select to be reimbursed on vet bills will usually range from 70% to 100% (just check the caveats on 100%).
💸 The higher the benefit percentage, the higher the premium, and the lower the benefit percentage, the cheaper pet insurance premiums will be.
We offer two options, 80% and 90%.
In the market, the available excess ranges from $0 to over $500.
💸 The lower the annual excess, the higher the premium, and the higher the annual excess, the cheaper pet insurance premiums will be.
It is important to note that not all excess available in the market are the same. The three main types are per claim excess, per condition excess and annual excess and they are very different.
A per claim excess would be applied (ie. you need to pay this amount out of your own pocket) for every claim you submit.
A per condition excess would be applied for every different condition that your furry friend develops and you make a claim.
An annual excess is only applied once for the year, regardless of how many claims you made, or how many conditions you furry friend had.
Optional Extra Benefits
Many insurance providers offer the opportunity to add-on extra benefits, such as behavioural problems, physiotherapy or emergency boarding. Each insurance provider will offer different extra benefits, so make sure to consider what extended cover you would like your pet to have.
💸 The more optional extras you choose, the more expensive your pet insurance premium will be, and the less optional extras, the cheaper you can make your pet insurance premium.
💸 Adding dental coverage will increase the amount you pay for pet insurance. Choosing to not include dental coverage will reduce the pet insurance premiums.
Not many providers have dental coverage as an option. If they do there are usually sub-limits.
Petsy is proud to be one of the few providers that offer dental coverage and as always there are no sub-limits.
Not many pet insurance providers will allow you to remove vet consultations from your coverage. In fact, when it comes to vet consultations, many have the caveat of a sub-limit on vet consultations.
💸 If you decide to remove vet consultations, this will make your pet insurance cheaper.
We chose to allow our members to remove the vet consultations, which can pair well with a wellness plan, or simply reduce the premiums.
So, whilst cheap pet insurance can be a tempting option, it’s important to understand what it really means. While some may define “cheap” as a lower-priced option, it’s essential to remember that not all pet insurance products are created equal. Before purchasing a pet insurance policy, it’s crucial to evaluate the level of coverage offered and assess whether it meets your individual needs and is right for you and your furry friend.
It’s also important to note that certain pet insurance providers may have different definitions of what constitutes an accident or an illness. Thus, it’s essential to contact the insurance provider and confirm what is covered under the policy.
To reduce the cost of pet insurance premiums, pet owners can consider adjusting the options, such as the annual limit, annual excess, and reimbursement percentage. However, it’s vital to remember that lower-priced options may come with limitations or exclusions that could lead to unexpected out-of-pocket costs.
Ultimately, the goal of pet insurance is to provide financial protection for unexpected vet bills. At Petsy, we offer one customisable product with no sub-limits and flexible annual limits that provide coverage at what we see as reasonable price, backed with a high level of customer service (it’s currently one of the highest rated, if not the highest rated!).
We recently introduced a $500 annual excess option that can reduce the premium by more than 40% in some cases.
We hope that by understanding what “cheap” pet insurance really means and evaluating the coverage options available, pet owners can make informed decisions and select a pet insurance policy that is right for them and their furry companions.
you can call us anytime on 1300 952 790.