Pet insurance local arrangement?

joey2307

I was chatting to my parents the other day about pet insurance, I've always advised them to stick some money in their own savings account rather than give their money to an insurance company, who have more tricks than Paul Daniels, as someone we all know would say!

We then got talking about energy costs and this "big switch", "huge switch" thing.

Which made me wonder if there could be something in that idea that could be applied to pet insurance.

A load of local doggie owners all chip in a few quid per month that gives a reasonable sized pot that could be dipped into if necessary.
I think there would have to be some kind of legal thing that everyone involved would have to sign up to.

Of course problem is if what happens if someone's pet needs treatment very early on in the scheme or if a couple of owner's need to dip into the pot at the same time which could drain a lot of money very quickly. Then there's the problem of repeated treatment/medication and on going problems.

In light of recent problems with pet insurers withdrawing despite promising life cover, wondered if there was a way round it.

Could lead to a lot of trouble really couldn't it?

krlyr

This was recently discussed on a dog forum I'm on. Sounded far more trouble than it's worth. Who decides which claims are paid and which aren't - if there's no limitations then the "pot" will get emptied pretty quickly. What happens if there's not enough money left in the pot - will people who've put their £5/10 a month in each and every month be stung and not be able to claim a penny for their vet bills? What if a dog needed £1000 of treatment within two months of the scheme starting - when 20 people have only put in a tenner, you'd fall well short of that £1000. What about on-going claims - what if someone is only contributing £10 a month but claiming £50 in lifetime medications - will they be dropped from the scheme due to being an ongoing drain of finances? If so, they'll be left totally stuffed because no formal insurance company will cover a pre-existing condition.
What happens when personal feelings get involved? Joe Bloggs is seen giving his dog a whack for running off in the local park - and now the community begrudge paying out any money to him because of his cruel behaviour. Or Jane Doe's Labrador waistline slowly disappears due to her killing him with kindness in the form of food - will people feel reluctant to pay out for his hip replacement ops when they'd been trying to tell her all along to cut down on his consumption?

I personally would rather spend twice as much for my dogs' insurance to have the safety of an established insurance company behind me. They have laws to follow, an ombudsman to take complaints up with, and a reputation to uphold nationwide if they want more custom. They may well have several tricks up their sleeve to try to get out of some claims but I would rather take my chances with them than a community-run group with the dozens of pitfalls and potential dramas it could incur.

Wellyboots6

Could a different approach be to gather together a group of people to approach insurance companies to get quotes, and request a group discount for a group of people all signing up at the same time?

I know what I mean but can't explain it very well!

Dollardog

I think the last line of your post says it all really - "Could lead to a lot of trouble really couldn't it?"

Yes it could, for the reasons krlry has mentioned.
My friend used to put money away in a savings account for her old dog, but when it got ill, she got very close to running out of money in there, she wouldn't have had the money to spend on a lot of treatment had it have run out, the dog died before it did run out. When she got a pup, she decided to go for the insurance instead.
I had never had insurance on any animal until I had my last one, its a good job I had got it though when he got cancer in his eye and had to have the eye removed. I doubt if I could have found the money.
Personally, although my current dog has had a couple of claims now, is getting on a bit and the monthly premium has shot up to £65 per month, I am still glad to know it is there should he need it. I wouldn't join a 'self help' type group to save a few pounds as the legal implications could be enormous. It would be just my luck for the pot to have run dry when I needed it most, who provides the backing then? I wouldn't feel at all comfortable that the money I had been paying in had gone to help someone else's animal and there was none left for mine. Also, if an animal was on long term medication, it could just have to be cut off at a time when no other insurance company would take it on due to it being an existing condition.
I would steer well clear if I were you, not worth the hassle to save money.