Why pet insurance pays off

Taking out an insurance policy for your pet is the prudent thing to do. Photo / Thinkstock

Owning a pet is a two-way relationship. They give people pleasure during the good times, but you have to take care of them when they fall ill.

This year alone, pet insurance claims in New Zealand have covered things such as animals eating a pen, a plastic bolt with a steel washer, cigarettes as well as the packet, chocolate Easter eggs (including the foil), five protein bars, and painkillers. One vet even removed a peach stone, beer bottle lid, a stone, and random items of plastic from one dog's stomach.

In 2013 Southern Cross Pet Insurance received more than 9000 claims, with the largest one being $12,000 for spinal surgery on a dog that had been hit by a car.

Taking your pet for medical treatment normally comes out of the blue, an unexpected expense that can put a serious hole in the family budget.

People without medical insurance for their animals frequently face the agonising choice between going without to pay the vet's bill, getting a loan, or opting for the cheaper option of having their animal put down.

Pete Bradley was out walking with his dog Jack Daniels on when it decided to run across a road. Hit by a car, the wild haired Jack Russell Terrier was rolled under the vehicle and suffered multiple fractures to his pelvis.

"Had it not been for the pet insurance it would have been a very expensive time for me," says Pete, who works as a call centre operator at Christchurch City council.

"I was really grateful to have the insurance, it is something I took out as soon as I got Jack when he was a puppy."

When Pete arrived at the vets with Jack he was told the dog's injuries were serious.

"The first question they asked me was how he got injured, the second question was to see if I had any insurance for him," he says.

"Having the insurance opened so many more doors for the treatment of Jack. It was the one and only time I had to use the policy in almost six years, and the bill came to around $1700 by the time we were finished.

"Obviously I had to pay the vet's bill upfront, but it was good to know I'd get most of it back as there was an excess to pay of about $300 - so I got back about $1400 from Southern Cross."

Unfortunately, a blood clot killed Jack within 48 hours of the accident, so while Pete had the stress of losing his pet, he didn't face the added stress of a big bill.

"As the swelling started to go down Jack started having strokes, cardiac arrests...so we let him go," says Pete. "But it was certainly a big relief to know the bills would be covered."

Pete's pet insurance policy cost him $13 a week and covered him for up to $10,000 for his dog and Jim Beam, his cat. He's now paying premiums of around $4 a week to insure his cat.

"I'm a big advocate of pet insurance because you know the maximum you'll have to pay, and the rest is covered by the policy. My thought was that I never wanted to have the conversation with a vet about what's good for me financially and what's good for my pets. I never wanted to be put in a position to have to make that choice."

Pete is planning a holiday at the end of the year, but when he returns he will start looking to buy another dog.

"And I'll be signing him up for pet insurance straight away," he says.

Pet problems

Southern Cross Pet Insurance says the most unusual claims usually involve dogs eating things such as razor blades, light bulbs, batteries, socks and chocolate.

Some of the more eye-watering claims made to the insurer include:

• A dog eating a polyurethane adhesive glue that turned into a 10cm x 15cm mass that had to be surgically removed at a cost of more than $1,400.
• A dog had a suspicious item in its stomach and intestine. Exploratory work led to surgery that found three socks inside the animal. The vet bill came to $3,700.
• A baby's bottle was removed from another dog's stomach. Including multiple x-rays, and an exploratory work, the cost was $2,900.
Source / Southern Cross Pet Insurance

Steve Hart is a freelance journalist at SteveHart.co.nz