Vet fees pushing pet owners into debt – will insurance help?

Vet bills are pushing pet owners into debt, with more than a third turning to credit cards to cover the cost of treatment.

Investec’s research found some owners are taking years to clear their debts and, because of interest, could end up paying far more than what was originally borrowed.

Pet insurance can help to soften the blow of unexpected vet bills, but cover can be expensive. Here, we explain what pet insurance covers and how to cut the cost of your premiums.

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Should you put a vet bill on a credit card?

When a pet falls ill or has an accident, owners have no other choice but to turn to vets. The cost of helping a beloved dog or cat get better can be eye-watering, with treatment for a serious condition running into thousands of pounds. 

Paying with a credit card is one way to avoid a large upfront bill. It means you can repay the full amount in manageable chunks over the course of several months. An interest-free credit card could help you avoid interest if you clear the balance before the interest-free period ends.

Investec's latest survey of 1,000 adult pet owners found that 36% of pet owners are settling vet bills this way. While most clear their debt within months, 13% took between one and three months to fully settle the costs, 6% took three to six months, and 2% took between one and two years. 

If you don't pay off the balance in full, you could accumulate interest on what you still owe and end up paying significantly more than the original vet bill. 

Credit cards also have borrowing limits and if your vet bill ends up in the thousands, you may find yourself unable to cover the full amount.

• Find out more: how to get cheap pet insurance

How pet insurance can help

Pet insurance is one of the most common ways to avoid being stung by vet costs. It involves paying a monthly premium but if your pet falls ill or is injured, the insurance company will usually foot the bill. 

Remember, it may not cover all the costs. Routine pet healthcare, for example, usually won’t be covered – so that's check-ups, vaccinations, and flea and worm treatments. You will also typically need to pay an excess if you make a claim. 

If you have a co-payment policy, where you pay a percentage of each claim, you'll need to pay this on top of the excess. Many providers also exclude pre-existing conditions, such as diabetes.

Our expert reviews of pet insurers detail the highlights and lowlights of their policies.

• Find out more: best dog insurance policies and best cat insurance policies

5 ways to cut cover costs

While pet insurance can give you peace of mind if your animal needs expensive treatment, the price of an annual policy may still put some owners off.

The average pet insurance premium is £23.63 a month, according to MoneySuperMarket. But it could be higher or lower, depending on your pet's individual circumstances – such as age and breed – as well as the type of policy you buy.

If you're feeling the squeeze, there are a few ways you can keep the costs of pet cover down.

1. Look at the excess

One simple way to reduce the cost of a policy is to adjust the excess you pay. This is the amount you immediately contribute towards any claim. 

The higher the excess you are willing to pay, the lower the premium may be, but think carefully about how much you can realistically afford if your cat or dog needs expensive treatment.

• Find out more: pet insurance explained 

2. Third-party liability cover

If you are a dog owner, one option is getting third-party liability cover only – this will cover your costs if someone decides to make a claim against you because of an injury or damage caused by your dog, so long as your pooch doesn’t have a history of aggression. 

Most insurers offer it as standard or as an add-on.

Cats are considered 'free spirits' by the law, and owners are not responsible for their actions.

3. Free or subsidised vet treatment

If you are on a low income, you may be entitled to help from charities such as the PDSA, Blue Cross and the RSPCA.

Pet owners on certain means-tested benefits can get free or subsidised veterinary care, although the charities may ask you to donate something towards the costs. Get in touch with the charities directly to find out if you meet the eligibility criteria.

4. Multi-pet policies

Own more than one pet? It might work out cheaper to get a multi-pet policy rather than insuring each individual animal separately.

You're usually allowed to add up to six pets on one policy, and there's often a discount for doing so. Each pet can still get the same amount of cover offered under a standard single-pet policy.

But there are a couple of snags to watch out for. Changing the cover level at renewal will mean it changes for all the animals included on the policy. This could be a problem if you need different cover for each individual pet.

Also, insurers sometimes describe the policy as ‘multi-pet’ when in reality it is just individual policies linked together. And finally, make sure you compare the price of individual and multi-pet policies – just in case it doesn't work out any cheaper.

5. Shop around and always read the small print

Whether you are renewing or buying a new policy, it's always worth shopping around.

Price comparison sites, which allow you to view multiple pet insurance quotes at a glance, are a good place to start.  

Once you're on the insurer's website, check the policy details again, just to be sure the insurer has received all the correct information about your pet and is providing an accurate quote.

And remember – no matter what your policy, it's important to check the small print for any caveats that may come back to bite you in the wallet when it's time to claim.

Before you buy, check our Which? Best Buys and customer ratings to find insurers that offer good value and service. We highlight the providers with the strongest cover and highest satisfaction scores.