A lot of Australians are looking for ways to save money due to the rising cost of everyday living. This impact is felt not just by ordinary households, but by pet owners as well. They have to shell out additional expenses to care for their furry friend, aside from their personal matters.
And yes, these expenses include pet insurance. Truth be told, pet insurance can get pricey, especially for dogs. Insuring a dog is more expensive than a cat because they are said to be more prone to health risks and accidents.
But dog insurance is definitely a worthy investment and can save you thousands of dollars on your hospital bill. That’s why it’s also risky to cancel your pet’s insurance plan. In this blog, we will give you tips to reduce the cost of dog insurance to help you save money further.
Tip #1: Insure your pet while they are young
It’s best to avail of pet insurance when your dog is still young or even a puppy. This is when they are very much healthy and not prone to health risks. That explains why younger pets have cheaper insurance premiums.
As your dog ages, their premium also increases because adult or senior dogs have higher health risks. And this may mean that the chances of claiming are also high. The added benefit of insuring your dog at a young age is that you already have peace of mind that their health is secured over their lifetime.
Tip #2: Choose your pet insurance package wisely
There are usually three types of pet insurance: accident only, accident and illness, and comprehensive with routine care. The highest level of cover with also the most expensive premium is the comprehensive package.
If you already have a plan, evaluate it and check whether it is indeed the plan you are looking for. You might have a comprehensive one, yet you only need coverage for accidents. Downgrading is also a good help.
Meanwhile, if you haven’t taken out a plan yet, decide carefully on which type you want your pet to access. Think twice before availing of a plan as you might think you need an extensive plan when you really just need the basic one.
This tip does not mean to discourage those who have or are looking to get a comprehensive one. We aim to raise awareness about reading and understanding your policy for your own benefit as well.
Tip #3: Increase your excess or self-insurance deposit
Choosing a larger excess helps reduce your dog insurance premium. That’s because you agree to cover a higher amount of your pet’s hospital bill and therefore lessens the amount your insurer has to pay. In a way, you are rewarded with a lower premium.
If you haven’t come across this term yet, excess is the amount you pay on your hospital bill before your insurer steps in and pays for the remaining bill. It usually applies to the first claim. At ExtrasJar, we call it a self-insurance deposit.
Be wary in choosing your excess or self-insurance deposit, though. Select the amount you know you can easily take out when claiming. Most pet insurance works through a reimbursement model. Meaning, you pay first and then submit your claim to your insurer to get back the percentage they owe you. You don’t want to agree to a larger excess only to fork out a hefty sum.
Tip #4: Lower your benefit percentage
Some insurers allow you to tailor your cover, and that includes choosing your benefit percentage or the amount your insurer pays, which is around 70% to 90%. Practical advice to cut down the cost of your insurance premium is to choose a low benefit percentage. However, this technically means your insurer pays a lesser portion of your bill resulting in more out-of-pocket expenses.
This is a good option if you think you won’t claim that much. First, you can save from your monthly premium and second, prepare your piggy bank for a once-in-a-blue-moon out-of-pocket expense.
Tip #5: Look for an insurer that makes your insurance plan work for you
Above all, your insurer plays a big role towards your savings. Choose a financial institution with the utmost commitment to caring for your pet AND empowering you to save further.
Just like ExtrasJar! We strive to give your pet’s healthiest future while helping you achieve financial security and independence. We have been in your shoes before, so we know how it feels to want more security and control over your investment. It’s our money anyways, right?
Invest while keeping your furry friend healthy with ExtrasJar
We have an innovative approach towards pet insurance that will not only allow you to reduce the cost of premiums but expand your savings as well!
Our self-insurance deposit feature gives you the opportunity to lower your premiums in the long run. If unused, it rolls over to the following year and stays invested in our pioneering managed investment scheme model. This way, it gains the potential to increase and put more cash in your back pocket for future pet care use.
What customers also love about our pet insurance model is that there are no sub-limits per treatment. Claim up to your annual limit with no caps!
We also allow you to tailor your cover according to your liking. Choose your annual limit, benefit percentage, and self-insurance deposit.
At ExtrasJar, it’s all about you and your pet. We give you all things you love about insurance with none of the bits you don’t. This is a revolution, join us at the forefront.
