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How a $900 veterinary bill left me barking mad over insurance

Pet insurance has grown in popularity in the past decade amid rising vet costs, but many policy owners find themselves forking out for expenses they thought were covered.

It was a $900 doggie dental bill that caused me to crack.

Our seven-year-old pooch recently required surgery for multiple tooth extractions and other procedures, and the local vet had warned us it would cost up to $1000.

But I was prepared. I’d been paying pet insurance premiums for several years, had never made a claim, and the Woolworths Pet Insurance website said surgery was covered.

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Now it was payback time, and after the surgery we waited for the insurance money to arrive.

It never came. All we received a letter from the insurer saying none of the several surgical procedures were covered under our policy.

So I politely rang the insurance company and told them to stick their policy where the sun doesn’t shine.

They were very nice and quickly went into customer retention mode, offering me a cheaper policy. But the catch was that this cheaper policy covered even less than my original policy! No thanks.

Your furry friend might feel better after a vet visit but you won’t if your insurance won’t pay.
Your furry friend might feel better after a vet visit but you won’t if your insurance won’t pay.

It’s no wonder that consumer group Choice recently reviewed more than 80 pet insurance policies and could not recommend even one of them, “due to their many restrictions and the lack of competition in the market”.

Aussies spend half a billion bucks each year on pet insurance products, and many of us don’t realise just how much stuff isn’t covered.

We faithfully pay hundreds — sometimes thousands — of dollars each year to pet insurers and only realise it was a waste of money when it’s time to claim.

“There are lots of tricky exclusions and variations between policies that mean you really need to read the fine print to avoid your claim being rejected,” Choice says.

People do anything for their pets — even waste money on insurance.
People do anything for their pets — even waste money on insurance.

It says factors making pet insurance more confusing include:

• Premiums increase as a pet gets older (and more likely to need vet care).

• The breed of pet often affects the price, and policies can have exclusions for conditions and illnesses common to that breed.

• There can be low limits to how much the insurer will pay per claim.

“Pet insurance providers currently have no legal obligation to maintain the competitiveness of your policy and can make any changes they like when you renew annually,” Choice says. These changes can include premium increases, reduction in coverage percentages, added exclusions, and reduced payment limits and sub-limits.

My dog’s poor dental hygiene habits left my wallet $900 lighter, but for many pet owners the price is much more painful.

Pet insurance can be valuable if your pet is unlucky enough to suffer a major issue that is luckily covered by your policy. But it’s a gamble.

Many people will be better off self-insuring — setting aside money in an emergency fund, or simply having a redraw facility on a home loan to help out in an emergency.

Many types of insurance are essential to protect yourself and your family. Don’t go without car insurance, home and contents cover and life insurance.

But others are a rip-off. Think accidental death cover and credit card insurance.

Pet insurance fits right into that rip-off category. It’s pretty ruff.

@keanemoney

Originally published as How a $900 veterinary bill left me barking mad over insurance

Original URL: https://www.adelaidenow.com.au/moneysaverhq/how-a-900-veterinary-bill-left-me-barking-mad-over-insurance/news-story/7f9ac46050dc779487bb69e5908541c8