Pet cover – can I get by on self-insurance?
If you have recently become a pet owner, you will probably find that everyone is giving you different advice. Some people may be telling you that you absolutely must get pet insurance. Others may suggest that you would be better off with self-insurance.
What is self-insurance? If you self-insure, instead of paying into a pet insurance policy, you put aside a regular sum of money each month into your “cat fund” or “dog fund”. The idea is that if an emergency arises, the money is there to pay for it. If it doesn’t, you’ve got the money to use for something else – whereas if you had paid it into a pet insurance policy, it’s gone for good.
So is this a good idea?
Well, the general view is that it’s better than nothing, if you really can’t afford pet insurance. But there are at least three major arguments against it.
You only get out what you put in. Suppose a major emergency happened when you had only been saving for a few months. You would only have a small amount in the kitty. If you had been paying into a pet insurance policy they would pay out even after a short time (most policies set a minimum payout time, to ensure that you don’t take out the policy after you’ve realised your pet is ill, but it’s usually only a few weeks.)
You have to be very strong-minded to leave the money alone. If you have another call on your funds – major repairs needed for your house, for example – the temptation to use it would be almost overwhelming.
The third reason is the big one. Self-insurance really wouldn’t be any use for a pet that could possibly cause an accident, or any injury or damage that could result in legal action. Recently there was a case of an alsatian that ran into the road and caused a car accident – the resulting medical claim came to £40,000! You couldn’t possibly save up enough on your own to cover this sort of claim.
If in doubt, play safe and get pet insurance. For the cost of a couple of meals out a month, it could save your house!
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