For The Pet Who Has Everyting ... Insurance
The Age
Monday October 9, 2000
You insure your car, your house, your health, your holiday - and now you can insure your pet. If you're an enthusiastic animal lover, pet cover is an added security. It helps you sleep at night, takes the sting out of veterinary bills and provides protection against worrying accidents.
But is this insurance a luxury for the eccentric pet lover or a smart way to avoid forking out unexpected amounts of money?
Australia has a relatively small population. While pet insurance has grown quickly in countries such as Britain and the United States, their large populations make it easier for insurance companies to survive. The experience of Australian pet insurers has been more troubled.
About 64 per cent of the 6.8 million households in Australia own pets - the highest ownership of pets in the world. We have about 3.6 million dogs and cats. And some 70 per cent of pet owners visited a vet in the past 12 months.
Louise Petschler, of the Australian Consumers Association, says that if you have a high-maintenance breed or you expect to run into expensive veterinary care, it might be worth insuring your cat or dog.
"For most pet owners, the bulk of reasons for going to the vet may not be covered," Ms Petschler says. "We recommend consumers check the fine print and are aware of what the policy will deliver."
She warns preventative veterinary medicine, pre-existing conditions and pregnancy are excluded from most policies. "It can be hard to tell at what point your pet had a pre-existing condition," she says.
Dr Barbara Wellington of the RSPCA is in favor of people insuring their pets with reputable companies. "Without a vet trying, you can run up a bill of a $1000 very easily," she says.
A cat hit by a car could need hospitalisation for several days, surgery and a pathology check, she explains.
"Each procedure can add a couple of hundred dollars to the account," she says. "The actual surgery is often the least of the charges."
The longest-standing insurer is Pet Protection Plan, which started in 1995. Underwritten by ACE Insurance, it is endorsed by the Australian Veterinary Association. It gives $3 from each policy to the Guide Dog Association of Australia.
Cover is available for animals between eight weeks and 10 years. The monthly cost for a cat is $17.39 for standard cover and $21.75 for deluxe cover. A dog costs $21.26 for standard and $26.71 for deluxe cover.
Standard cover for a cat offers among its benefits: $1200 a year for veterinary fees, $30 a day hospitalisation, $200 a year for broken bones and up to $450 if you have to cancel your holiday. For a dog on a deluxe policy, you can claim up to $2550 a year for vet fees, $50 a day for hospitalisation, $200 for broken bones and up to $750 for holiday cancellation. And you can claim up to $1 million for personal liablity.
Exclusions include vaccinations, de-sexing, pregnancy, non-essential hospitalisation and housecalls, euthanasia, teeth and pre-existing conditions. There is a 10 per cent reduction for two or more animals and a 60-day waiting period. An excess of $75 or 20 per cent applies to each claim.
Petsecure, which was launched in 1998, is underwritten by HIH Insurance. It is endorsed by the RSPCA. It covers pets from eight weeks to 12 years old and covers you 14 days after joining. There are discounts for up to four pets. Monthly policies cost from $12.75 for an accident-only standard policy with excess of $75, ranging up to $26.95 for an excess-free accident and illness policy. A one-off $13.75 charge applies on your first payment. There is a maximum payment of up to $5000 a year. Petsecure pays 80 per cent of veterinary fees.
Exclusions include worming, vaccination, pregnancy, desexing, infestations, pre-existing conditions and teeth cleaning.
Since August last year, GIO has offered pet cover as an add-on to home-and-contents insurance. For an extra $50 a year, your pet (eight weeks to 10 years) is covered for up to $500 for each incident. There is no maximum amount you can claim each year and there is no waiting period. A second pet costs $25. If your home is unfit to live in, you can claim accommodation for yourself and your pets. If you have an excess on your home policy, it also applies to this.
Exclusions include costs relating to death, elective surgery or preventative treatment such as vaccinations, de-sexing, heartworm testing and pre-existing conditions. Vaccinations must be up-to-date when you take out a policy.
Shaun Leveton, of AFS-PetMed, which is a new product from AFS Financial Services and South Africa's PetSure, says less than 1 per cent of pets are covered in Australia in comparison with 66 per cent of British pets.
"We aim to promote more responsible pet ownership," Mr Leveton says. "We want to reward the owner for going to the vet more often."
He says the biggest killer of pets is economic euthanasia, when a pet owner must decide on a pet's well-being based on a financial decision.
"The secret is to get the healthy pets to subsidise the unhealthy pets," he says.
PetMed says it is the first to offer lifetime cover. Routine care, another unique feature, can be added to existing policies. PetMed accidental injury cover costs $15 a month, comprehensive cover is $26 and routine care an extra $8 a month. If your pet joins before it is eight years old, it gets lifetime cover. Under accidental injury, you can claim a maximum of $4000. Under comprehensive cover you can claim $7000 a year, $4000 for accidents, $3000 for unexpected illness, $300 for drugs, $300 for hospitalisation, $500 for radiology, $1000 for skin conditions and $100 for boarding. Routine care cover has a choice of capped benefits such as desexing, teeth cleaning, vaccinations and prescriptions.
Exclusions include pre-existing, hereditary or congenital conditions and pregnancy. There is a one-month qualifying period. It pays an 80 per cent refund and there is a
10 per cent discount for subsequent pets.
Pet insurance is best suited to the accident-prone. If your cat is a streetfighter who ends up with regular abcesses, or your dog has a habit of chasing cars, it's likely you will have high vet bills.
Shop around and choose a reputable insurance company. Make sure you can understand the policies on offer, costs and exclusions. Read the fine print. And don't sign up unless you can really afford the cover.
Pet contacts
Petsecure
www.petsecure.com.au or phone 1800 621 672.
Pet Protection Plan
www.petinsurance or phone 1800 815 675
GIO
www.gio.com.au or phone 131 010
AFS-PetMed
www.afsfinancial.com.au or phone 1300 363 552
© 2000 The Age