Pet insurance 800% hike!!!

k-hkr

Hi, we took pet insurance for our dog 2 years ago as he was getting on a bit. I researched the best type of cover and took out a 'lifetime' (this means that any illness is covered on an ongoing basis and not excluded after the year as pre existing condition) top policy with 'Protect Your Bubble' for £22/month.

Within the year he had been diagnosed with arthritis and not long after cushings syndrome. These are chronic illnesses and require daily drugs. The cost of these drugs is around £130/month from the vets. On top of this is periodic blood tests etc.

We have never had a problem with the insurers. We do have to pay 15% of the costs as he was an older dog when we took it out. I must admit I was dreading the first year renewal but it only went up pennies. I was recommending them to friends etc.

I have just got the renewal through for 12th May (that was a lot of notice - not!!) at £135/month (don't forget we also pay 15% of costs). We are basically paying for his claims ourselves!!

They say on the letter that they are using a new underwriter, which they seem to think is an excuse to rip you off or try to get rid of anyone who is costing them money.

The trouble is we now cannot get the dog's conditions insured elsewhere as it is a pre existing condition and requiring regular drugs (who is going to knowingly 'insure' that?) but when we were given the original quote they should have had their risks and premiums correct in my opinion. They are potentially consigning a dog to be put down as they do not know if we are in a position to afford a 600% hike in costs.

Is there any action I can take? I am going to write a formal complaint to the company and then go to the Financial ombudsman if/when they tell me to get lost. What offical grounds do I make the complaint on though? I have heard the term 'treated unfairly' in association with FSA complaints. Any advice would be greatly appreciated.

dacouch

They are using a new underwriter as the other underwriter will have decided to pull out as they were not making money / enough money. The new underwriter will have agreed to take on the business but at premiums they feel they can make money.

An "Official Complaint" will cost you nothing and might result in a reduction in premiums.

What age is your dog?

Errata

You're not being treated unfairly. The insurance company has made you an offer of insurance for your pet, which you can accept or decline as you choose.
I would suggest you talk to your vet and discover the cost of the monthly medication for the dog's arthritis and Cushings. Both conditions are common in dogs and because of this you may discover the cost of the meds is less than your monthly insurance payment has been.

rs65

Errata wrote: »

Both conditions are common in dogs and because of this you may discover the cost of the meds is less than your monthly insurance payment has been.

I would just add that you may still want insurance, excluding these conditions, for anything else that may happen in the future.

kloana

Is there anywhere else you can buy these drugs from, for cheaper than the insurance cost? I mean with the advice of the vet, obviously! There's lots of (legitimate and safe) sites out there that you can purchase directly from, with a vet's prescription. As with human drugs, there's also lots of sites that one shouldn't touch with a bargepole...

Then, as implied above, the pure insurance side of things (always a good idea to keep even a very basic policy) could work out cheaper.

k-hkr

Do you think it is 'fair' for a 600% increase? The way I thought insurance worked was that they made a profit 'overall' as most people pay their premiums but do not claim. For those who do claim to be made to pay for the cost of the claims is hardly what I thought insurance was all about. The fact that I took out a supposed top policy, insuring him for 'life' but now meaning I am effectively tied to that company and their premiums or left paying for all the meds is not imo fair.

I have checked the online price for his meds and they are coming in at £107/month but then we need vets prescription charges/3 monthly check up/bloods on top so around £150/month I reckon. It is still going to work out cheaper to insure him and have ongoing cover for anything else as well.

Sparky is now around 13-14 (he adopted us in 2002 aand the vet reckoned he was around 2-3 years old then.)

Just_Some_Guy

Pet insurance used to be cheap to the point where noone was making any money selling it and even selling at a loss just to maintain market share. So some companies stopped writing it and with less competition prices go up (and up). Your dog being of advanced years was always going to see hefty hikes in premiums even before the new underwriter.

Wait five years and they'll start cutting prices again.

k-hkr

I can hardly wait 5 years when we need insurance now. They have us by the short and curlies here and they know it, hence the premium being pitched at just under what we would be paying each month. Yeah, they are still 'losing' money on us - just, but they cannot expect everyones premium to be pure profit.
You win on some, you lose on others, but premiums overall mean they make profits. As I say, if they made 5% profit margins overall then they are up there with the big energy companies and look how much bad press they get!

Chomerly

Have you considered trying a different vet?

I know that your vet knows your dog but in some instances, medication can vary depending on the vet you choose to go to.
Vet mark ups can be quite extortionate at some practices.

It may also be worth talking to your vet and asking them if there is a better deal to be had or if there are cheaper alternatives to the current medication used.
If you can show your vet that you have found other veterinary practices that can do the job cheaper then he/she may be inclined to discount your treatments. Especially as it is an ongoing procedure.

It may also be worth looking into the medication being prescribed to your dog.
There are a lot of treatments out there that are for human use but because these medicines are being prescribed by vets, the mark up is ramped up considerably. Effectively, they are nothing more than relabelled over the counter medicines.

I have a dog who last year had an eye infection.
The vet prescribed a treatment that cost £28 and i was asked to go back in a week to see who she was doing.
After i got home and i read the label, i found that the treatment given had an ingredient in it called Chloramphenicol.
Its an over the counter eye treatment that is used to treat conjunctivitis and other eye ailments in humans.
Best thing is, it costs about £5 depending on where you shop.

I'm not saying all vets are like that which i have described. Its just sometimes, they themselves use suppliers who are more unscrupulous.
Sometimes its best to look around for other products that contain the ingredients that an over the counter medicine has and use those instead.

_Andy_

A company can charge what they like for products and services.

The price hike is frustrating but isn't a matter of 'unfair' or not.

Buzby

When the premiums become a bigger burden than the treatment, it is time to re-evaluate. Insurers want to make a profit, and you are not helping their bottom line hence their review.

We started to self-insure with our last 2 dogs and regularly put away £30pm in a contingency fund. (Average what you need and do the same). You then have no premiums to worry about, or the excess on each claim.

We've consistently come out ahead.