Choosing the Right Pet Insurance Excess for Young Pets

Bringing home a new pet is one of life’s greatest joys. However, amongst all the excitement, there is a time when you have to get serious and think about things like pet insurance. Listen, we’re not here to rain on your parade; we’re just here to get real. And getting real means taking the time to learn what comes with your insurance policy and what your limits are.

Part of the pet insurance journey is choosing an excess that's right for your pet. It can be tempting to think that because they’re young, you should pick the cheapest policy possible, but this can be dangerous as it results in high excesses, which can be hard to pay when veterinary treatment is needed.

In this article, we’re here to explain why choosing the right pet insurance excess for your young pet can make all the difference, the different levels you can choose and the things you should consider before purchasing a policy.

An excess is the amount that you, the policyholder, are willing to contribute towards claims for your pet. If you’re new to the world of pet insurance, you might assume that this is the amount you’re paying each month or year, but it’s not! Here’s an example to break it down:

Let’s say you had a vet bill that was £800 and your chosen excess is £100; this means your insurer would pay £700 of the vet bill (subject to your policy terms, exclusions and remaining annual limit cover).

Not all insurers have the same arrangements when it comes to excesses, so we always recommend reading the policy wording rather than relying solely on the headline price you might first spot. If you’re considering Waggel but need some help, why not speak to our Customer Service Team, who are more than happy to help answer any questions.

Our pet insurance dictionary is also a great resource for cutting through the jargon.

Here’s a rundown of the different types of pet insurance excess.

Compulsory

This is a very common type of excess in the insurance world, and it is set by the insurer themselves. It’s a fixed amount from when you purchase your policy and is the amount you’ll pay out of pocket whenever you claim, regardless of the cost of treatment.

There is no specific number when it comes to compulsory excesses; insurers all differ, and the amount of excess you may be expected to pay may depend on the age of your pet and their breed.

Voluntary

This kind of excess is one that you have the option to choose when you sign up for a pet insurance policy. To put it simply, the higher the voluntary excess you choose, the lower your monthly or annual premiums will be.

Choosing lower monthly payments often means you’ll end up with a higher excess and therefore have to pay more when claiming back vet fees. Before choosing your voluntary excess amount, you should make sure you can afford to pay the excess.

Co-payment

As well as an excess, some pet insurance policies include something called co-payment. This means that once you’ve paid your excess, there may be an extra percentage of the treatment costs left to pay. It’s another out-of-pocket cost that’s paid on top of your excess.

An example of co-payment looks like:

Mr. Green’s policy: £4,000 annual limit, £100 excess, 20% co-payment.

First vet visit – £1,000 vet bill (new condition)

• The £100 excess is deducted first

• 20% co-payment is applied to the remaining £900 = £180

• Mr. Green pays: £100 (excess) + £180 (co-payment) = £280

• Waggel pays: £720

• Remaining cover: £3,280

Some insurers add a co-payment as a mandatory additional payment once your pet reaches a certain age. At Waggel, we don’t do that. We offer a 20% co-payment as an optional choice to reduce your monthly premiums. 

Pet insurers apply excesses differently. Depending on the policy you choose, the excess might be payable once per condition, once per policy year for each condition, or every time a claim is submitted. As mentioned above, some policies require a percentage contribution, called a co-payment, as an additional out-of-pocket cost on top of the excess.

As an example of how different excesses are charged, imagine a dog develops pancreatitis and needs treatment for a number of years. Under one type of policy, the owner might pay the excess once, when the condition is first claimed for. With another type of policy, the excess could be payable again each time the policy renews, even though the treatment is related to the same condition. A co-payment contribution may also apply to every veterinary bill.

This is why it’s important to remember that lifetime cover doesn’t necessarily mean just paying one excess for your pet's life! Lifetime cover refers to how eligible cover continues when the policy is renewed. Don’t forget to always compare excesses, co-payments and renewal terms carefully.

At Waggel, your excess is charged once for each unique condition per policy year. If your pet needs continuing treatment or appointments for the same condition during that policy year, you will not need to pay your excess again. However, if your pet develops a separate condition, another excess will apply. 

When your policy renews, so will your excess and annual limit. Our excesses are also voluntary. You can choose from £0 to £500 and also opt into a 20% co-payment charge to reduce your monthly premiums. With Waggel, we want our customers to have flexibility and allow you to change your annual limit each year at renewal, giving you even more control over your finances.

Many people believe that because their pet is young, they don’t need to worry about claiming. However, young pets (below the age of 1) are some of the most accident-prone! And trust us, we see our fair share of swallowed objects, stomach upsets, infections and breed-related conditions in young pets.

Vet bills can also increase for young pets because there are lots of investigations needed before a diagnosis is confirmed. Choosing a super low excess will likely mean that your monthly premiums are higher and are likely to increase as your pet gets older. On the other hand, choosing a high excess can mean that smaller claims are less worthwhile claiming for. As an owner, it’s worth considering your pet’s current age and looking into how the policy operates as they get older.

When it comes to choosing the right excess, ask yourself the following questions:

1. How much could you pay at short notice?
Choose an excess that would remain manageable alongside other costs.

2. Would a higher excess make the premium meaningfully cheaper?
Compare the total annual saving rather than focusing only on the monthly figure.

3. How would the excess apply to ongoing treatment?
Check whether it becomes payable again at renewal.

4. Is there a percentage contribution?
Calculate what this could mean on a £1,000, £3,000 or £5,000 claim.

5. Are you likely to claim for lower-cost treatment?
A high excess may mean you end up paying most or all of a smaller bill.

6. Could the excess change as the pet ages?
Look beyond the first year of cover.

The following table shows illustrative figures only and provides examples of the first claim for a condition in a policy year with no co-payment applied. Actual premiums depend on the pet and policy details.

Note: These premiums are hypothetical, not actual Waggel prices. Real premiums require a personalised quote because they depend on the pet, postcode and selected cover. For a quote, visit waggel.co.uk/quote. 

As mentioned earlier, the biggest mistake we often see is people choosing a policy based only on the cheapest premium offered. Though this can feel like a bargain in the moment, you could be setting yourself up for financial insecurity through larger vet bills to pay throughout your pet’s life. 

Another mistake is not doing enough research and assuming every insurer charges excess in the same way. Some insurers also include compulsory excesses alongside their voluntary ones (not us!).

The best way to think of it is to choose an excess that would not be difficult to afford during an emergency. The most comfortable option is what you should then choose. And finally, don’t forget to check whether the excess you’ve chosen applies again after renewal.

When it comes to finding the right excess for your young pet, only you can decide what’s best for you both. It should keep both your premiums and contributions towards vet bills manageable and realistic, so always choose cover that feels comfortable.

Always compare the full policy, including cover limits, any exclusions and carefully read the excess structure and renewal terms so you know what you’re signing up for.

At Waggel, we offer a variety of excess and annual limit options to make pet insurance personalised to you. Your policy also comes with 24/7 online vet care so you can get the help you need, night or day, as well as access to free behaviour and nutrition advice so you can figure out what's going on with your pet throughout every stage of their life.