Pet Insurance or Savings: Who Wins?

Boost partner PD Insurance weighs in pet insurance vs savings and the what you should consider when deciding whats best for your furry friend.

New Zealand is a pet loving nation with close to as many pets as there are people. To be precise, there are almost five million pets here and our human population weighs in at just over that. However, while the number of pet owners is high it far surpasses the number of pet insurance policy holders, meaning many rely on savings when pets are injured or ill.

Pets are our close friends and family, so how do we cope when faced with unexpected significant pet medical treatment costs? Is it enough of a safeguard to rely on savings? Can you ever save enough? If not, how does this affect your pet’s wellbeing?

Let’s take a closer look at choosing between pet insurance and savings – and which is best.

How much is pet insurance in NZ?

According to online search data, the most common pet insurance question in NZ is how much is pet insurance?’ This shows pet parents are researching costs with growing interest. It also potentially indicates some concern over pet insurance costs; understandable given the rising cost of pretty much everything else these days.

Pet insurance is still a relatively young and growing industry in our country, which means some people won’t risk buying a policy until it’s tried and tested by people they know. But another consideration is that pet owners often don’t realise the value of return on investment from pet insurance until something happens to their pets… when often it’s too late.

A plan for every pet and every pocket

With PD Insurance a pet plan that covers accidents and third party liability can cost as little as around $1 a day for a $5,000 annual benefit limit.

The premium rises from there if you want cover for illnesses as well as accidents and a $10,000 annual benefit limit, or a $15,000 annual benefit limit that includes some dental treatments.

PD Insurance have priced pet insurance to be within reach so Kiwi pets can be well cared for with basic essential cover or more.

Can you afford to use savings to get quality medical care for your pet?

Having savings is always a savvy financial strategy, but is it good enough for pet health costs? We humans tend to avoid relying solely on savings for our own health care. Regardless of whether it’s for broken bones or chronic illness, many of us feel safer having private health insurance. And that’s even when we know public hospitals will provide us with a certain amount of care for free.

But there’s no public health system for pets. Medical treatment costs are all out of pocket – your pocket, as the pet’s owner.

So why is pet insurance take-up still only hovering at around 1 in 5 pet owners? Perhaps it’s because we don’t know how much pet care costs until we’re faced with the unexpected. A single accident can require a range of tests, medication, overnight vet clinic stays, surgery, other treatments and more. Costs can quickly reach thousands of dollars.

While savings are oh so valuable in times of need, a pet insurance plan can pay 100% of eligible vet bills less your excess, up to the claim limit. For example, Milo the dog had an accident and the vet bill came to $4,725. PD Insurance paid $4,600 and Milo’s owner only paid the excess of $125.

Proof is in the numbers

Let’s take a look at a simple example; something our claims team sees all the time.

You’re billed $3,000 to treat your dog’s broken leg or some kind of serious infection; something you couldn’t have anticipated. You’d need to have diligently saved $50 each month for five years (60 months) to have enough for that one situation alone.

Once paid, those accumulated savings would be depleted. If for any reason your pet has another medical mishap in that period you might have nothing left to pay their vet care, so your credit card takes a big hit instead.

You don’t expect the unexpected, let alone multiple health issues happening one after the other, but this can happen. Harvey the Schnauzer is a great example. This little pooch had three hair raising moments in quick succession – but thankfully his owners had PD Pet Insurance to protect him.

Quality pet insurance comes with extra $$ benefits

In addition to providing the financial benefits that come from being able to afford big vet bills out of the blue, some pet insurance also comes with built-in savings. For example, depending on your member profile, with PD Insurance you get the following rewards:

  • Multiple pet discount. The more furkids you cover, the less you pay on your base insurance premium*
  • Free puppy and kitten insurance. Three months free pet insurance for pets under one year old*
  • Free dog and cat insurance. One month free pet insurance for older pets*
  • Switching fee cover. Up to $150 per pet for fees you pay to another insurer when leaving them to join PD*
  • No waiting periods. When you join PD from another insurer you’ve been with for 12 months or more*

PLUS, because you’re a Boost member you’ll receive an extra 10% off your first year’s premium!

PD Insurance was recently named New Zealand’s favourite and best pet insurance provider by pet owners. Why not save yourself the agony of financial crises by getting an affordable pet insurance plan today? We all know healthy pets make happy people and communities.

*At time of writing

This article was written and provided by PD Insurance.