Is pet insurance worth it?

It depends on the premium versus the risk. Insurance covers a large unexpected vet bill, including early on before you have saved much. Self-insuring keeps the premiums but leaves you exposed to a big bill before your fund grows.

What is self-insuring a pet?

Self-insuring means saving the amount you would have paid in premiums into your own fund for vet bills. Over time it can build a useful buffer, but a major bill early on could exceed it.

Which is better, insurance or savings?

Insurance suits those who could not absorb a large vet bill and want certainty. Self-insuring can suit disciplined savers who can cover a big bill from other means while the fund grows. The calculator compares the totals.

Pet Insurance vs Savings Calculator

This New Zealand calculator compares paying pet insurance premiums against self-insuring by saving the same amount for vet bills. You enter the premium and likely vet costs, and it shows which approach is likely to leave you better off, helping pet owners decide how to cover the risk of a big vet bill.

Annual premium

Years of cover

Expected routine vet costs (per year)

Likely major bills over the period

likely better value over the period

Total premiums$0

Self-insure fund built$0

Expected vet costs$0

Insurance often does not cover routine costs and has excesses and exclusions, while self-insuring leaves you exposed to a big early bill before the fund grows. This compares totals only; certainty and the timing of a large bill also matter. Estimate only, not financial advice.

How it works

The calculator totals the premiums over the period, and separately the fund you would build by saving the same amount each year if you self-insured. It compares these against the vet costs you expect, both routine and major. If your expected major bills are larger than the self-insure fund could cover, insurance looks better; if the fund comfortably covers them, self-insuring keeps more in your pocket. The risk with self-insuring is a large bill arriving before the fund has grown.

Worked example

A $700 premium over 10 years is $7,000. Saving the same builds a $7,000 fund (more with interest). If major bills over that time are around $4,000 plus routine costs insurance may not cover, self-insuring could leave you ahead, provided you can cover a big bill early before the fund is large.

Related calculators

Pet Insurance Calculator: pet cover.
Pet Ownership Cost Calculator: lifetime pet cost.
Emergency Fund Calculator: build a buffer.
Savings Calculator: savings growth.

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