Cost of Dog Insurance Explained

Understanding the Cost of Dog Insurance

There is no doubt that having the medical treatments of your pet covered is beneficial. However, you have to take into account the cost of dog insurance as well. You would certainly like to know how much a policy will cost you so that you can figure out whether you will get the best value for the money that you pay. Learn what costs you will have to incur and how they are determined to get a better idea of how much you can expect to spend.

What is the full cost of dog insurance

When you buy dog insurance, you pay a set price. This price is called premium. Typically, the premium is annual or monthly. You will pay it for as long as you use the policy. If your policy comes with an annual premium, the insurer may provide the option of paying it in monthly instalments. Usually, this opportunity is available at no extra cost.

Every time you make a claim on your policy, you will have to pay an excess, which is also part of the cost of dog insurance. Basically, it is a fee which you pay for using the policy. It can also be seen as the contribution which you make towards the respective cost which the insurer covers. The excess is typically automatically deducted from the claimed amount which you receive. It should be pointed out that typically the excess fees for the different types of cover benefits included in a single policy package vary.

While the premium is the fixed cost of dog insurance, the excess is the variable one. You should consider both when comparing different types of policies. You have to make sure that you can afford to pay the excess in the case of an emergency. The insurer will not typically charge other fees. However, if they do, these have to be outlined in the agreement which you sign. Read it carefully before placing your signature.

How is the cost of dog insurance determined

Sometimes, the insurance company sets a fixed premium and fixed excess fees for all of the policies which they sell to canine pet owners. However, this is not typically the case. Both types of costs are determined on the basis of a set of factors which are different for every owner. This is done because the risk the company assumes with each policy varies. When the risk is higher for them, they will charge more and vice versa.

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The factors determining the cost of dog insurance are:

(a) Level of insurance - Since the medical or vet fees cover is the major one present in virtually every policy it determines the level (type) of insurance. The main types of pet insurance are lifetime, per-condition and time-limited. The lifetime policies typically have the highest premiums while the premiums of time-limited plans are generally the most affordable.

(b) Amount of insurance - The more coverage you purchase, the higher the cost of dog insurance will be and vice versa. Keep in mind that the amount of coverage which you buy typically affects only the premium and not the excess.

(c) Pet's breed - Some dogs are more likely to develop certain medical conditions than others. Similarly, some breeds are known for their predisposal to injuries. The insurance companies use various techniques to determine the risk associated with each breed. They charge higher premiums and/or higher medical cover excess fees for breeds with higher risk of illnesses and/or injuries.

(d) Pet's age - Older pets typically cost more to ensure as they are more likely to fall ill and to get seriously injured. You will most certainly end up paying a greater premium and/or vet fees cover excess if your pet is 8 or older.

(e) Pet's overall health - The owners of healthier canines will enjoy a lower cost of dog insurance. Animals that have a chronic illness or injury require more expensive and more frequent treatments so the insurer will mostly charge a higher premium and/or excess.

Your location - The issuer of the policy will consider the average vet fees in your area when determining the cost of dog insurance for you. They will also take into account how hazardous the area is for the pet's health by looking at statistical data on canine injuries, illnesses and epidemics in your area. The higher the vet fees the higher the cost of dog insurance will be. The same applies if the risk of injuries and diseases is higher.

How can you save on the cost of dog insurance

Lowering your premium by increasing the excess fees is one of the most popular options for saving among pet owners. It is a risky one, however. It is usually recommended only to individuals with healthy pets who can afford to pay the higher excess in case of an emergency.

Dropping some of the additional cover benefits or buying smaller amounts of cover should work to lower the cost of dog insurance considerable. You just have to make sure that you will not need the respective benefit in the future.

Find and use discounts to save on the cost of dog insurance. Online purchase discounts and multiple pet insurance discounts are readily available.