Understanding Pet Insurance Costs

Wondering what affects your pet insurance premium? Let’s break it down together, so you can make the best choice for your furry friend’s coverage.

Pet insurance can be a lifesaver, literally. It helps New Zealand pet owners manage vet costs and ensure their furry friends receive the care they need. However, just like insurance for your health, car or home, pet insurance premiums or costs can vary widely. As a pet owner, it's important to understand the factors that influence the cost of your pet insurance premium. In this post, we'll discuss these factors to help you make informed decisions about insuring your pet.

1. Type of pet

The breed of your pet can significantly impact insurance premiums. Typically, dogs are more expensive to insure than cats due to their tendency to need more medical care. Within the dog world, certain breeds can also have higher insurance premiums due to specific genetic predispositions to health issues. Great Danes, for example, may have relatively higher insurance costs compared to Labradors due to genetic predispositions such as bloat, hip dysplasia and hypothyroidism.

2. Age of the pet

Age is another crucial factor. The older your pet, the more likely they are to need medical care, which increases the insurance premium. As per our previous post, it's a great strategy to consider insuring your pet while they're young to lock in lower rates and ensure coverage for chronic conditions that might develop later in life.

3. Payouts

The payout or reimbursement rate, which is the amount of the vet bill your insurance agrees, also plays a role. Pet insurance plans with higher reimbursement rates may have higher insurance premiums. Choosing a lower reimbursement rate can reduce your monthly costs but may increase your share of any vet bills.

4. Limits

Some insurance plans set annual or lifetime limits on how much they will pay for your pet’s medical expenses. Plans with higher or no limits will generally have higher premiums. For example, under our Titanium plan, which has $18,000 annual cover limit, the monthly cost for insuring a Shih Tzu is $131. In contrast, under our silver plan, which a $4000 limit, the monthly cost is $75.92. So, what does this mean in plain English? It’s very simple. It's important to consider how much coverage you might need, based on your pet's health, breed and your financial situation.

5. Add-ons and Special Coverage

Additional coverage for dental care or special treatments like acupuncture or chiropractic services can also influence premiums. While these add-ons can increase costs, they can be beneficial for overall pet health and reduce long-term out-of-pocket expenses.

6. Multi-pet policies

Finally, many insurance providers offer discounts for insuring multiple pets. These discounts can help mitigate the overall cost of premiums.

Choosing the right pet insurance plan requires balancing coverage needs with what you can afford. By understanding the factors that affect insurance costs, you can better understand your options and find a policy that suits both your budget and your pet’s needs. Remember, the goal of pet insurance is to provide peace of mind and financial protection against the unexpected. Make sure to review your policy details carefully and consider these factors to ensure you're getting the best possible deal for your precious pet.

Looking for the Best Way to Protect Your Furry Friend?

Contact our experts today and discover how you can protect your beloved companion. Alternatively, you can visit our plans page to find out more about the details of the plans we offer.