What Is Excess in Pet Insurance?
If you're wondering what is excess in pet insurance, think of it as your contribution towards an eligible claim.
For example, imagine your pet receives veterinary treatment costing $2,000. If all $2,000 is eligible under the policy and a $250 excess applies, the calculation could look like this:
Eligible veterinary expenses: $2,000
Applicable excess: $250
Remaining eligible amount: $1,750
The insurer's contribution would then be calculated from that remaining eligible amount according to the other terms and conditions of the policy.
This is a simplified example only. Actual claim payments can also be affected by policy limits, exclusions, co-payments and other policy terms.
How Does Pet Insurance Excess Work?
The answer to how does pet insurance excess work depends on the policy you choose.
Different insurers may structure their excesses differently. An excess could potentially apply in different ways depending on factors such as the type of cover, claim or condition.
That's why you shouldn't assume that every pet insurance excess NZ policy works the same way.
Before buying cover, check the relevant policy wording and look for:
- How much the excess is
- When the excess applies
- How often it can apply
- Whether different excesses apply in different situations
- Whether other contributions, such as co-payments, also apply
For Pet-n-Sur's current policy wording, visit:
https://www.petnsur.co.nz/pet-policies/
You can also find answers to common pet insurance questions here.
When Do You Pay the Excess?
This is another important question because there isn't one universal answer.
Depending on the insurer and policy, the excess may be deducted when an eligible claim is settled rather than being a separate bill that you physically pay to the insurer. Other claims processes may operate differently.
More importantly, don't assume an excess automatically applies once per claim, once per year or once per condition. These structures vary between policies.
Always check the wording of the particular policy you're considering.
If you're preparing to make a claim with Pet-n-Sur, you can find current information about the process here.
For a broader step-by-step guide, read this guide.
Is a Pet Insurance Excess the Same as a Deductible?
The term pet insurance deductible is commonly used overseas, particularly in North America.
In New Zealand, you're more likely to see the term "excess".
Both generally describe an amount the policyholder contributes before the insurer's portion of an eligible claim is calculated. However, terminology and how that contribution is applied can vary between providers.
Rather than relying on the name alone, check the policy wording to understand exactly how it works.
For explanations of other common insurance terminology, visit here.
Excess vs Co-Payment: What's the Difference?
A pet insurance excess fee and a pet insurance co pay can both affect how much you contribute towards veterinary expenses, but they aren't the same thing.
An excess is generally a specified amount deducted according to the policy's excess rules.
A co-payment is generally a percentage or proportion of eligible costs that remains payable by the policyholder.
Here's a simplified example showing both:
Eligible veterinary expenses: $2,000
Applicable excess: $250
Amount remaining: $1,750
If the policy then required a 20% co-payment on that remaining eligible amount:
20% co-payment: $350
Insurer contribution: $1,400
Owner contribution: $250 excess + $350 co-payment = $600
This example is for explanation only and does not represent a specific Pet-n-Sur policy. The order and method of calculations can vary, so always check current policy wording.
Does a Higher Excess Mean a Lower Premium?
Sometimes an insurance policy with a different excess structure may also have a different premium.
However, this isn't something you should assume across every insurer or policy. Providers may structure their cover, premiums and excess options differently.
When comparing pet insurance, look beyond the monthly or annual premium.
A cheaper premium doesn't necessarily tell you how much you could need to contribute if your pet requires treatment.
Similarly, a higher premium doesn't automatically mean you'll have a lower excess or receive broader cover.
It's better to compare the complete policy.
For more tips, read this.
Can You Get Pet Insurance With No Excess?
Some people specifically look for pet insurance with no excess.
Whether this is available depends on the provider and policy. Some products may offer different excess arrangements, while others may have a set excess structure.
A "no excess" feature should also be considered alongside the rest of the cover rather than in isolation.
The premium, co-payment, annual limits, exclusions, waiting periods and covered treatments can all affect the overall value and suitability of a policy.
Look Beyond the Headline Premium
When comparing pet insurance, it's easy to focus on one number — usually the premium.
But understanding what you might pay at claim time is just as important.
Consider the policy's:
- Excess
- Co-payment, if applicable
- Annual or other benefit limits
- Exclusions
- Waiting periods
- Eligible treatments and conditions
- Claims process
You can learn more about what pet insurance may and may not cover here.
Waiting periods are explained here.
It's also worth reviewing your cover periodically as your pet and circumstances change.
Understanding Your Excess Helps You Plan Ahead
A pet insurance excess is ultimately one part of the overall policy structure. Understanding how it works can help you estimate what you may need to contribute if your pet requires veterinary treatment and compare policies more confidently.
Before choosing cover, read the policy wording carefully and consider the excess alongside co-payments, limits, exclusions, waiting periods and premiums.
You can explore Pet-n-Sur's current cover options here.
And if you're deciding between different levels of protection, this guide may also help.
Important: Any Pet-n-Sur-specific excess amounts, structures or claim calculations should always be checked against the current policy wording before publication.
