YQA: Is pet insurance worth it?

What price do you put on never having to worry about about your pets health for as long as you have the insurance policy? On the other hand some pet parents prefer to self insure as the low-risk and high-reward for their situations. Lastly there is a small minority who don’t insure due to affordability challenges and also are unable to save for any unforeseen circumstances. 

Why is pet insurance so expensive?

For some, pet insurance in NZ pay seem expensive, for others it may seem very cost effective. Basically the cost of insurance is the average of all claims then the providers operational costs nd profit margins added on top. This will be influenced by all parties involved including your pet’s needs and the costs specific to the insurance provider. Lastly, it could potentially be skewed with pet owners. The ones that take out insurance may  have increased costs vs self-insure pet owners to maximize the value they receive out of the policy. This in turn puts upwards pressure on premiums in the long term.

Should I buy pet insurance or self-insure?

We saw this discussed a lot during our research phase and it’s definitely a popular method amongst some pet parents who don’t mind the risk. After an internal discussion in relation to self-insurance we decided it’s an option for many kiwis. We believe self insurance is a catch-22 as the pet parents who can afford to self-insure and are looking for costs saving are highly likely the ones who can afford a medium to high level of cover from an insurance provider. If you’re not sure if self-insuring your pet is right for you, or you’re questioning why you should go with a pet insurance provider in New Zealand ask your self the following questions. 

• Are you happy with having the risk of a large bill for something your emotionally attached to?
• Are you good at saving for a rainy day for specific costs?
• Are you someone who stresses over the unknown cost of your pet’s future
• Do you believe your pet has a lower risk profile when compared to the average pet environment?
• Can you afford to not insure your pet?

If you answered more ‘No’s that ‘Yes’s then self insurance is probably not for you.

Our recommendations

• Balance costs with co-payments
• Only cover for large accidents
• Check for special promotions or multi policy discounts
• Check to see if you’re covered for scenarios that are more likely to occur for your situation.