What is pet insurance excess?

Key takeaways

• Pet insurance excess is the amount you pay towards a claim before your insurer covers the eligible remaining costs

• You may have to pay a compulsory excess, a voluntary excess or an additional percentage of the claim, known as a co-payment

• Choosing a higher excess can reduce your premium, but it means you'll need to pay more towards treatment if your pet becomes ill or injured

What is pet insurance excess?

Pet insurance excess is the amount you agree to pay towards an eligible claim before your insurer covers the remaining costs, up to your policy limit.

There are two main types of excess: compulsory excess and voluntary excess:

• Compulsory excess: the fixed amount your insurer requires you to pay towards a claim. You can't usually choose or remove this amount

• Voluntary excess: an additional amount you agree to pay on top of your compulsory excess. Choosing a higher voluntary excess could reduce your insurance premium, but you'll pay more if you make a claim

For example, if your policy has a £100 compulsory excess and a £100 voluntary excess, you'll usually pay £200 towards an eligible claim, subject to your policy terms.

Your policy documents will explain how much excess applies and whether you need to pay it per claim, per condition or per policy year.

Some policies also include a percentage-based co-payment, which means you'll contribute a proportion of the remaining eligible treatment costs.

Why do I need to pay excess on my pet insurance? 

Most types of insurance have an excess, and pet insurance is no exception. It helps insurers share the cost of claims with policyholders and can help keep premiums lower.

There are many reasons for having an excess, including:

• Sharing the cost: you contribute towards eligible treatment, while your insurer covers the remaining amount within your policy limits.

• Reducing smaller claims: an excess can make it less worthwhile to claim for minor vet bills.

• Keeping premiums affordable: choosing a higher excess may reduce the price of your insurance.

You should still make sure you can afford your excess. If you can't pay the amount required, you may struggle to benefit from your policy when your pet needs treatment.

How does pet insurance excess work?

Many pet insurance policies reimburse you after you've paid your vet bill. Your insurer assesses your claim and pays the eligible amount, minus your excess and any other applicable deductions.

Here's an example of how it works:

Step 1: Take your pet for treatment

Your dog needs surgery at a veterinary hospital, and the eligible treatment costs £1,000.

Step 2: Pay your vet bill

You pay the £1,000 bill directly to your vet, unless you've arranged for your insurer to pay them directly.

Step 3: Make a claim

Contact your insurer online or by phone. You'll usually need your policy details, information about your pet's treatment and the relevant veterinary invoices.

Step 4: Your insurer assesses your claim

Your insurer checks what's covered under your policy and calculates the amount it's able to pay. With a £200 excess and no other deductions, the payout would be £800.

Step 5: Receive your payout

Once your claim is approved, your insurer pays the eligible amount according to its claims process.

This is a simplified example. Your actual payout could differ if your policy includes a percentage-based co-payment, exclusions, a claim limit or other deductions.

What are direct vet payments?

Some insurers offer direct vet payments, which allow them to pay your vet directly for an approved claim.

If your vet agrees to this arrangement, you may not need to pay the full treatment bill upfront. Instead, you may only need to pay your excess and any other costs not covered by your policy.

Direct payments aren't available for every policy or veterinary practice, so check with your insurer and vet before arranging treatment.

What are the different types of pet insurance excess?

There are three main types of excess to understand when comparing pet insurance policies: compulsory excess, voluntary excess and percentage-based excess.

Compulsory excess

A compulsory excess is the amount your insurer requires you to contribute towards a claim. It's set by the insurer and generally can't be changed by the policyholder.

The amount can vary depending on your insurer, policy and pet's circumstances.

Voluntary excess

A voluntary excess is an additional amount you agree to pay on top of your compulsory excess.

You may be able to choose the amount when you buy your policy. Increasing your voluntary excess could reduce your premium, but it also means you'll pay more towards a claim.

For example, if your policy has a £100 compulsory excess and a £100 voluntary excess, your total fixed excess would be £200.

Changing your voluntary excess can affect the price of your pet insurance policy, so compare the potential savings against the amount you'd have to pay if your pet needed treatment.

Percentage excess or co-payment

Some policies require you to pay a percentage of eligible treatment costs as well as a fixed excess. This is often called a co-payment or percentage excess.

For example, if your eligible vet bill is £1,000, your fixed excess is £100 and your co-payment is 10%, the calculation could look like this:

• Fixed excess: £100

• Remaining eligible bill: £900

• 10% co-payment: £90

• Your total contribution: £190

• Your insurer's contribution: £810

The exact calculation depends on your policy. Some insurers introduce co-payments when a pet reaches a certain age, while others apply them from the start of the policy.

How often do I have to pay my pet insurance excess?

This depends on your policy. Some insurers apply an excess to each claim, while others charge it per condition or per condition per policy year.

For example, if your pet needs several treatments for the same ongoing illness, you might only have to pay the fixed excess once during the policy year if your policy applies it per condition per year.

However, a percentage-based co-payment may still apply to subsequent eligible bills.

Always check your policy wording to understand when the excess resets and whether separate conditions have separate excesses.

Should I choose a higher or lower pet insurance excess?

The right excess depends on your budget, your pet's needs and how much you're comfortable paying towards unexpected vet bills.

Before choosing an excess, consider whether you could afford it alongside any co-payment, excluded treatment costs or expenses above your policy limit.

A higher excess isn't necessarily the best choice if it could make it difficult to pay for your pet's treatment.

Can I get pet insurance with no excess?

Some insurers offer policies with a low or no fixed excess. However, availability depends on the provider, policy and your pet's circumstances.

A policy advertised as having no excess may still include a percentage-based co-payment or other limits, so check the terms carefully.

No excess policies may also have higher premiums than comparable policies with an excess. Compare the overall cost of cover against how much you could save if you needed to make a claim.

Is pet insurance excess higher for pets with pre-existing conditions?

No, the fixed compulsory excess itself is not usually higher just because a pet has a pre-existing condition, though insurers often charge higher overall premiums or add mandatory co-payments and tighter claim limits for older or chronically ill pets.

When do I not need to pay my pet insurance excess? 

You don’t normally need to pay excess when you claim additional benefits provided by your pet insurance policy outside of vet bills. These excess-free benefits can include: 

• Benefits to cover pet funerals and cremations 

• Benefits to recover lost or stolen pets, including advertising costs, rewards, or reimbursement for the value of your pet 

• Benefits to cover boarding fees for kennels or catteries if you or a family member are hospitalised  

• Certain benefits for travelling with your pet, such as cover for emergency trip cancellations and lost pet documents  

Not all pet insurance policies are the same. The benefits you get and the excess you need to pay will depend on your chosen provider and policy, so you should always check your policy documents to confirm your cover. 

If you have any questions about when you do or don’t need to cover your policy’s excess, it may be worthwhile to speak to your chosen insurance provider.  

How can I get cheaper pet insurance?

Choosing a higher excess is one way to reduce your premium, but it isn't the only option. You could also:

• Compare quotes from different insurers. Premiums, excesses, exclusions and vet fee limits can vary. Comparing policies can help you find a balance between price and cover

• Review your level of cover. A different policy or lower vet fee limit may reduce your premium, but you could have to pay more yourself if your pet needs expensive treatment. Make sure you understand what's covered before changing your policy

• Consider paying annually. Paying for your policy upfront may cost less overall than monthly instalments, which can include interest or administration charges

• Choose an affordable excess. A higher excess might lower your premium, but make sure you could comfortably pay it if your pet needed treatment

Why compare pet insurance with MoneySuperMarket?

Why compare pet insurance with MoneySuperMarket?

Adjusting your excess isn't the only way to find affordable pet insurance. Comparing quotes from different providers can help you find a policy that suits your pet and your budget.

With MoneySuperMarket, you can compare pet insurance quotes and review important details such as premiums, excesses and cover limits before deciding which policy is right for you.

Remember to compare the excess alongside the overall cover, including exclusions, co-payments and claim limits. The cheapest policy isn't necessarily the best value if it leaves you paying more towards treatment.