Comparing Annual and Monthly Pet Insurance Premiums: Your Guide

People are presented with one of two options for funding dog, cat and rabbit insurance from Pets at Home: monthly and annual payments. There are pros and cons for individuals using both methods, though they are presented to give different approaches to caring for your beloved cat, dog, rabbit or any other animal you keep in and around the home.

The traditional method to pay for pet insurance is through annual payments. This way, you can simply invest in a policy once for the 12-month period through one single lump-sum payment, either with a credit or debit card. Payments cover the entire insurance term and can be renewed at the end of the first period.

The benefits of this system are great in number. First, the simplicity of making the payment is favoured by many. You receive the documentation and then you can be safe in the knowledge that your pet is covered. There is also no interest; paying annually is generally cheaper, as many companies see monthly policies as a means of extending credit. Obviously, it also guarantees cover; you do not need to worry about financial circumstances changing, or even falling behind on payments due to a banking error or accidental overspending.

Meanwhile, annual coverage has its drawbacks. You’re committed to the policy whatever happens; even if your pet dies, the policy usually remains in place. Meanwhile, the immediate cost of the insurance coverage is often costly.

Monthly payments, meanwhile, are set up with direct debit and go out 12 times a year. They are great for those who could struggle to pay the policy up front, allowing them to spread the cost of cover over the entire course of the policy. The right to cancel is also there; while most have a one-month notice cancellation period, pet insurance can change or be cancelled with one phone call.

However, this option is more expensive overall; it often costs an additional low percentage of the annual policy. Meanwhile, if you forget to make a payment, there is an administrative processing error and cover could be compromised – the last thing you need if a vet bill lands on your plate.

While it is an open and shut case for annual payments, affording this investment can obviously be tricky.