Cost of Cat Insurance - Understanding the Cost of Cat Insurance

Cost of Cat Insurance

Understanding the Cost of Cat Insurance

When you cover your kitty, you will save on vet fees and possibly on other costs related to your pet. However, this does not mean that you should not consider the cost of cat insurance. Your primary task as a buyer is to get the utmost benefit for the lowest sum. In order to complete this task successfully, you have to have full understanding of the cost of this type of insurance.

What is Premium and Excess?

Most commonly, people refer to the premium as the cost of cat insurance. Indeed, this is the price which you pay for having the policy. Usually, the premium is calculated annually. Basically, you pay a set price for each year during which the policy is valid. Most companies provide the opportunity to pay the premium in monthly instalments for the purpose of flexibility. This is typically offered at no extra cost. Still, if you decide to pay the annual premium fully at one time, you may be eligible for a discount.

The excess is also part of the cost of cat insurance. This is the contribution which you make when the insurer pays the amount of money which you have claimed. Usually, it is referred to as excess fee. Basically, this is the fee which you pay whenever you make a claim and it is accepted by the company.

The excess is a fixed sum in most cases. However, it may also be a percentage of the claimed amount. It all depends on the insurer which you have got a policy from. In any case, the fixed fee or the percentage which you have to pay will be clearly stated on your insurance certificate. You will have a precise idea of how much you will have to pay when you make a claim.

The Individual Cost of Cat Insurance

You have certainly seen attractive offers saying that you can get the ideal insurance for your feline pet for just 5 pounds a month. However, most people miss to read the full part of the text which usually says that policies start from 5 pounds a month. Basically, this is the lowest premium amount which you can pay. The reality is that the cost of cat insurance is determined on an individual basis.

The insurer takes into account a variety of factors in order to determine this cost. Usually, both the premium and the excess are calculated on the basis of these factors. In rare cases, the excess fees are fixed for all policy holders. It is worth looking at the factors which will determine how much you will pay.

The level of insurance is the most important factor determining the cost of cat insurance. As vet fees cover is the main type of cover in every policy it determines the level of insurance. Based on this factor, there are plans offering lifetime, per-condition and time-limited insurance. Lifetime plans offer the highest level of cover and the most flexibility while time-limited plans are the most restrictive. Hence the former are the most expensive while the latter are the least expensive.

The amount of cover that you buy will also affect the individual cost of cat insurance. In general, the more cover you get the more expensive your policy will be. At the same time, the more cover you have the more you will be able to save on your pet's veterinary treatment. You can easily see the trade-off here.

Your cat's age and health are other major factors that will determine the individual cost of cat insurance. Most companies will set higher premium and excess for older pets. Similarly, if your pet has or has had a major illness or injury, you can expect to pay more. This is particularly applicable if the cat is chronically ill or injured.

The vet fees in your area are another factor which the insurer will take into account in order to set the premium and the excess of your policy. The higher the fees are the more expensive the policy will be and vice versa.

The number and amounts of extra covers that you buy will affect the cost of cat insurance as well. Most companies provide not only vet fees cover, but also covers for boarding fees, holiday cancellation, advertising and reward, theft and straying of the pet and death of the pet. Third party liability cover and pet travel insurance cover may also be available. Any of these can be included optionally in your insurance package. It is up to you to decide whether they are worth it, how many you need and how many you can afford to get.

Lowering the Cost of Cat Insurance

There are different ways in which you can pay less for your policy. The main option is to buy a lower level of insurance and/or a smaller amount of cover. In general, you can go for a policy without additional types of cover in order to save.

Most companies allow you to lower the premium by raising the excess on your policy. This is an effective way to save provided that you will not make many claims. Of course, you have to be able to afford to pay the higher excess.

Now you know the most important things about the cost of cat insurance so you can readily make savvy buying decisions.