8 Nasty Pitfalls to Avoid When Comparing Pet Insurance

A great way to do a pet insurance comparison is by getting quotes from several insurance companies.  Naturally, you want the best deal – one that’s financially manageable AND gives your pet protection in case of an accident or emergency.

But did you know there are some common mistakes people make when doing a pet insurance comparison?

Have no fear. We’ve rounded up eight pitfalls to avoid so that you can make the best possible decision for your pet and your pocket. Let’s pounce right in.

#1 Not reading the PDS when making a pet insurance comparison

A PDS is an insurance company’s Product Disclosure Statement – a document that explains the details of how their policies work. It tells you what’s covered by your policy, (e.g. accidents, illnesses), what’s not covered (e.g. pre-existing conditions, routine care), how claims work and how much you can claim, your policy limits, waiting periods, and excesses as well as the terms and conditions you agree to when you buy the policy.

Without reading the PDS, you’re essentially doing a pet insurance comparison in the dark. You might only find out after a vet bill that it’s not eligible for a claim. Or try to make a claim while still in your policy waiting period. Or expect full cover because you’re not aware of your claims limit or excess.

The PDS is there to inform and educate you so that you’re not surprised when it comes to claim time. Not reading it is like signing a contract without knowing what you’re agreeing to.

#2 Getting pet insurance comparison without matching it to your needs

One common mistake people make is choosing the plan with the lowest premium. Often, this means opting for an accident cover rather than comprehensive cover. Accident cover have its place, as long as you understand the limits of your cover.

PD Insurance’s Accident Plans – for instance – have third party liability cover (so you’re covered if your pet causes damage or injury to someone else or their property). It also covers the cost of treating your pet for injuries they got in an accident, including for things like choking, being hit by a car, and other unforeseeable incidents.

However, it doesn’t cover illnesses. Instead, you would need to opt for our Classic Plan or Deluxe Plan. These have a higher monthly premium, but you’ll be covered for everything that the Accident Plan covers, plus treatment for illnesses that are covered by your policy. Our Deluxe plan also offers pet dental insurance.

If you’re concerned about covering vet bills for illnesses or tooth troubles, an Accident Plan might not be the best choice. Additionally, if your pet gets an illness that’s chronic while on the Accident Plan it’ll be too late to upgrade for that condition. A higher level of cover won’t cover pre-existing conditions that started before you take out that plan (or during waiting periods). In short, when doing a pet insurance comparison, don’t opt for the cheapest plan without understanding what cover you’ll be getting (or won’t be getting).

#3 Overlooking your pet’s breed or age in a pet insurance comparison 

Not taking your pet’s age into account when buying pet insurance is a pitfall because age plays a huge role in what kind of cover you can get and what’s excluded. This is also a great reason to get pet insurance sooner than later, while your pet is at their youngest.

When choosing your pet’s cover, do some research on what type of health issues they’re predisposed to. Is your cat breed prone to allergies, for example? Do you have a large dog breed that’s prone to musculoskeletal issues? Are these covered by the pet insurance plan you’re doing a comparison on?

Breed specific health conditions are a known aspect of pedigree health care. Not only can you keep this in mind when doing a pet insurance comparison but for those still looking to become a pet parent, it’s good reason to buy from an ethical dog breeder.  

Keep in mind that dogs and cats are also more likely to need a higher level of vet care as they age. They’re likely to start needing it more often too – which is something worth keeping in mind when getting different pet insurance quotes.

Just like humans, pets’ healthcare needs change as they get older and senior pets might require more attention for emerging conditions.

#4 Ignoring the claims process in your pet insurance comparison

Another pitfall to avoid is getting a plan with an unclear claims process or with an insurer that takes weeks or longer to reimburse you. While your pet is in hospital or recovering, you don’t want to have to worry about how and when your pet insurance claim is going to be paid back.

PD Insurance is its own underwriter via Pacific International Insurance, which means we turn claims around fast. For us, once you’ve submitted a valid claim, the idea is to get your money back as quickly as we possibly can. We aim to do so within two business days of receiving required documents.

#5 Choosing a policy with a not-so-suitable excess

The excess is the amount of money you pay towards a valid claim, while your insurance company pays the rest (up to the policy limits). It generally works like a see-saw, if you choose a lower monthly premium then your excess will be higher. If you choose a higher monthly premium your excess will be lower.

When doing a pet insurance comparison on quotes, don’t make the mistake of choosing a lower monthly premium without being prepared for a higher excess when claiming. If you know you can afford that little bit extra each month for a larger payout when you need it most, then it may be worth weighing up your options.

Also be aware that some insurance providers charge a fixed excess and others charge a percentage of the vet bill. Importantly, understand that some providers charge that excess per vet bill and others (like PD Insurance) charge it once for a claimable event, regardless of how many vet bills were involved. You can imagine the financial difference that can make.

Here are other reasons why it’s crucial:

Emergency situations

In an emergency, you probably don’t want to be worrying about covering a hefty excess. Choosing an amount that fits your budget can provide peace of mind when your pet needs urgent care.

Claim frequency

Consider how often you might need to use your insurance. Pet mishaps don’t just happen once a year, they happen anytime. If you anticipate frequent vet visit for various health issues, a plan with a lower excess might be a better fit.

Lifetime costs

Over the life of your pet, the excess can add up. Make sure you’re comfortable with the potential long-term financial commitment.

#6 Overlooking co-payments in your pet insurance comparison

Another pitfall to avoid in your comparison of pet insurance quotes is ignoring the reimbursement rate. The reimbursement rate is what portion of your vet bills the insurance will cover, while you cover a co-payment. A co-payment is separate to an excess payment.

To explain… an excess is the fixed amount you pay upfront, before your insurance covers the vet bill. On the other hand, co-payments are the percentage that you’d pay on the rest of the bill after the excess is applied.

If you choose a plan with a lower reimbursement rate, you’ll end up paying more out of your own pocket each time your pet needs medical care.

Plans with higher reimbursement rates may come with higher monthly premiums – or they may not; it depends on the insurer, so do your research well by getting several pet insurance quotes from your select insurers. If your preferred plans all require co-payments, you’ll want to strike a balance between one payment that fits your budget and one where you’re not paying too much.

Different insurance companies have varying reimbursement processes. Some may reimburse based on the actual vet bill, while others have set fee schedules. Understanding how your plan handles reimbursements can prevent confusion when it’s time to make a claim.

PS: Here’s everything you need to know about pet insurance reimbursements.

#7 Pet insurance comparison pitfall – Contract lock-ins

Before signing up for a pet insurance policy, make sure you understand the terms of your contract. You may be locked into a 6 or 12-month contract where you won’t be able to cancel it before the term is up without paying cancellation fees.

Plus, if your pet develops a health condition while you’re waiting out your current contract, switching insurers later could mean that condition is excluded as pre-existing. That’s why it’s worth doing a pet insurance comparison upfront. Opting for a payment plan that works for you, without lock-in periods – like what PD Insurance offers – can help you avoid these issues and keep control over your pet’s healthcare.

PS: Since you’re shopping around for pet insurance quotes, we know you know pet insurance is important. But here’s why a vet thinks it’s worth it, too:

#8 Pet insurance comparison pitfall: Not exploring discounts

When getting pet insurance quotes, remember that some insurers offer discounts – so inquire about potential savings. For instance, if you have more than one furry friend, PD offers a multi-pet discount provided your pets are on a single policy.

We also pay up to a certain dollar amount per pet (at the time of writing) towards any switching fees your current insurer charges and waive any waiting periods if your pet’s been insured for 12 months or more. Nothing to lose, plenty to gain …

Hassle-free pet insurance

Now that you know more about the pitfalls to avoid, why not look into PD’s pet insurance?

We offer different payment options, plus no lock-in contracts or cancellation fees. With us, you’ll have the peace of mind knowing that your fur kid can receive quality vet care and you can have fewer financial worries. It’s all part of our philosophy to provide soft landings for our customers when things get tough. 

PLUS, you can get 1 MONTH FREE pet insurance (for cats and dogs) when you sign up. Click below to get a quote.