The cost of pet insurance varies depending on a number of factors. Firstly, the characteristics of the pet you wish to insure will alter your premium. The premium is simply the amount you pay in return for cover. Most insurers will only cover your pet if it is between a certain age range; if it is younger than eight weeks, or older than seven, eight or nine years old, an insurer may refuse to insure it. In some cases, you may be able to insure your pet even if it does not fall within this age range, but your premium may be much larger as a result.
As your pet ages, it is more and more susceptible to injury, illness and death, and the likelihood of you making a claim increases. Therefore, the older your pet is, the larger your premium. The type of pet also determines your premium; the more exotic and rare your pet is, the more expensive it is to insure. The breed and gender of your pet also affects the cost of your insurance, as statistically, some breeds are more likely to develop certain conditions or to be stolen than others. Most insurers will also ask for your pet's medical history, such as previous illnesses and pre-existing medical conditions. In addition, you are likely to receive a discount if you have had your pet micro-chipped, so that it can be identified and returned more easily if it is lost or stolen.
Where you live also has an effect on your premium. This is because veterinary costs vary depending on where your pet is treated in Australia: unsurprisingly, London is one of the most expensive areas. Some insurers may also increase your premium based on your age, gender and marital status, as statistically, these factors affect the likelihood of you making a claim. Lastly, the level of cover, type of cover and the amount of excess you agree to pay all affect your premium, because the less your insurer has to pay out in the event of a claim, the lower your premium will be.
Excess
The 'excess' is the first part of a claim that you pay yourself. The amount you pay depends on your insurer; some may charge a flat-fee of $50 for example, whilst others may charge nothing or charge a small percentage of the payout amount instead. Many insurers increase the excess as your pet ages. Ensure that you compare the excess between policies, so that you are aware of the true cost of making a claim. In addition, if you agree to pay a voluntary excess, your premium should be reduced; you may wish to ask your insurer if this is possible.
Unlike many other insurances, your premium does not increase if you make a claim. As a result, pet insurance does not have a 'no claims discount' scheme.
