Pet Insurance Excess Explained

The excess on your pet insurance policy is the amount you pay out of your own pocket before the insurer covers the rest. Understanding how excess works is crucial, because it directly affects both your premium and how much you pay when you claim.

What Is a Fixed Excess?

A fixed excess (also called a voluntary or compulsory excess) is a set amount you pay per claim or per condition. For example, if your policy has a £100 fixed excess and your vet bill is £800, you pay £100 and the insurer pays £700.

Most policies have a compulsory excess set by the insurer (typically £60-£150), and some allow you to add a voluntary excess on top. Choosing a higher voluntary excess reduces your monthly premium, but means you pay more when you claim. This can be a smart strategy if you want to keep premiums low and are comfortable covering smaller bills yourself.

What Is a Percentage Co-Payment?

Many policies introduce a percentage co-payment (also called co-insurance) once your pet reaches a certain age — usually 8-10 years for dogs and 10-12 years for cats. This means that after you have paid the fixed excess, you also pay a percentage of the remaining bill, typically 20%.

Using the same example: if your vet bill is £800 with a £100 excess and 20% co-payment, you pay £100 + 20% of £700 = £100 + £140 = £240. The insurer pays £560. This is a significant difference and catches many pet owners off guard when they first claim on an older pet's policy.

Per-Claim vs Per-Condition Excess

Some policies charge the excess per claim (every time you visit the vet and submit a claim), while others charge per condition per year. The per-condition model is generally better value if your pet needs multiple visits for the same issue, as you only pay the excess once for that condition in each policy year.

Check your policy carefully. A per-claim excess can add up quickly if your pet needs regular treatment for a chronic condition — for example, monthly check-ups for diabetes could mean paying the excess 12 times a year on a per-claim policy.

How Excess Affects Your Premium

There is a direct relationship between excess and premium. A lower excess means higher premiums; a higher excess means lower premiums. For most pet owners, a moderate excess of £100-£150 strikes the right balance. Very low excesses (£50 or less) can inflate premiums significantly, while very high excesses (£250+) mean you are unlikely to claim for anything other than major treatment.

Tips for Managing Excess Costs

Set aside a small emergency fund to cover your excess and any co-payments. Compare the total annual cost (premium + likely excess payments) rather than just the premium alone. If you have an older pet with a co-payment clause, factor this into your budgeting. Some providers offer fixed-excess-for-life policies with no co-payment, which can be more cost-effective for senior pets in the long run — these are worth seeking out if you are insuring a pet that is approaching the co-payment age threshold.