Powered by MOMENTUM MEDIA
Powered by momentum media
Powered by momentum media
nestegg logo

Invest

No such thing as good pet insurance

  • October 10 2019
  • Share

Invest

No such thing as good pet insurance

By Grace Ormsby
October 10 2019

The entire pet insurance industry has been shamed by a consumer advocate group in its annual awards which identifies the “worst of the worst” products and services on sale to the general public.

No such thing as good pet insurance

author image
  • October 10 2019
  • Share

The entire pet insurance industry has been shamed by a consumer advocate group in its annual awards which identifies the “worst of the worst” products and services on sale to the general public.

Pet insurance

As part of its annual Shonky Awards, CHOICE has awarded the sector a Shonky for “bad insurance riddled with insurance”.

The consumer group said it had reviewed 86 policies over the year and was unable to recommend any of them.

CHOICE CEO Alan Kirkland said “pet insurance is the insurance a business sells when it wants to make money without providing any service at all”.

Advertisement
Advertisement

“Riddled with exclusions and technicalities, pet insurance is one of this country’s worst-value insurance products,” he said.

Pet insurance

It relies on “emotionally manipulating” your love of your pet to sell you worthless insurance, Mr Kirkland continued.

“This year CHOICE found this industry so bad we refused to recommend any policy.

“There was not a single policy that we could in good conscience suggest that pet owners consider buying.”

CHOICE noted that most Australian contracts are covered by “unfair contract terms” laws that protect consumers from big businesses attempting to use tricky contracts to rip people off.

Insurers – inclusive of pet insurance providers – received a carve-out when such laws were introduced.

“This also highlights why insurance companies shouldn’t be exempt from laws against unfair contract terms – it’s vital this special loophole for insurers gets closed,” Mr Kirkland continued.

CHOICE also shamed pet insurers for leaving Australians “stuck” in expensive contracts because of pre-existing conditions” clauses.

As a pet gets older, it is near impossible to swap companies and keep the same coverage, which can leave individuals with huge increases to their premiums each year.

Confusing clauses can also leave consumers without coverage, with some policies covering pets for diseases if they are vaccinated, while some won’t at all.

Forward this article to a friend. Follow us on Linkedin. Join us on Facebook. Find us on X for the latest updates
Rate the article

About the author

author image

Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

About the author

author image
Grace Ormsby

Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

more on this topic

more on this topic

More articles