Mandatory co-insurance aka vet fees contribution

In pet insurance, the excess can take different forms: it can be numerical amount, expressed in pounds – £70, a percentage of the claim – 15%, or even both – £70 + 15% of the claim once the fixed excess has been deducted from the original amount.

The percentage excess, commonly known as mandatory co-insurance or vet fees contribution, is often applied to older pet policies. As they get older, they become more likely to claim and for bigger amounts. Therefore, some companies insist you pay part of the claim yourself.

 

Example

Your pet, which just turned 8 years old, broke its leg and the bill mounted up to £3000. Luckily, you’re covered up to £5,000 a year and your excess is as follows:

Option 1: your excess is £70

Vet bill: £3,000
Excess: £70
Reimbursed money: £3,000 – £70 = £2,930

Option 2: your excess is £70 or 15% whichever is the greater

Vet bill: £3,000
Excess: 15% of £3,000 = 450
Reimbursed money: £3,000 – £450 = £2,550

Option 3: your excess is £70 + 15% of the remaining claim

Vet bill: £3,000
Deduct the fixed excess £3,000 – £70 = £2,930.
Apply the co-insurance: 15% of £2,390 = £439.50
Reimbursed money: £3,000 – £70 – £439.50 = £2,490.50

 

Obviously, having co-insurance can be pretty expensive, so always ask the insurer how the excess is structured over time, if they impose a percentage excess, how much and from what age. Some insurers may offer a more competitive premium knowing that in the case of a claim, you would have to cover some of the costs yourself. Consider whether that’s acceptable and best for you before making a decision.