Insurance is an essential part of responsible horse ownership. It allows owners to transfer a financial risk to the company in exchange for a fee.
Insurance is costly. However, it can be cost-effective if the right policy is purchased. Here are some tips on how to save money on horse insurance without compromising your coverage.
Look for a Discount
Shopping around and finding the best price is essential when buying horse insurance. Many different things go into the cost of an equine policy, so it is vital to have a knowledgeable agent who can offer their clients various options. Some policies are more expensive than others, and the reason for this is that they provide more protection.
Some horses may not qualify for significant medical, or you may have to skip it due to budget constraints. In these instances, a surgical-only policy can be a good option. These policies cover lifesaving surgeries and usually come with yearly limits of up to $10,000. This type of policy can be found with most equine insurance companies.
Reduce Your Excess
Considering the cost of board, feed, hay, and veterinary bills, competition entry fees, and training, it is easy to see why horse owners can have little left in the bank when it comes time to pay for insurance. But that doesn’t mean you should skip it because opting not to insure can be costly, whether that’s paying for colic surgery out of pocket or having to absorb your horse’s value in the event of death.
Many equine insurers offer the option to pay your premium over 12 months rather than in one lump sum. This can reduce your cost, but it’s essential to check precisely what coverage you are getting, such as the annual limit on vets’ fees, whether it includes diagnostic work, and what the excess is – this can vary significantly between providers. Also, determine if your policy has an aggregate or per-incident limit, which could affect how much you can claim in a year.
Look for a Company with a Good Reputation
It’s no secret that horses can be expensive, significantly, when they’re injured or sick. That’s one reason horse owners often buy insurance to cover their expenses in an emergency.
The type of policy you buy will depend on your horse’s needs and budget. For example, if your horse is older and no longer competing at the top of its breed or discipline, you may want to remove loss-of-use coverage from your policy to lower your premium.
It would help to look for a company with a good industry reputation. An insurance agent specializing in equine insurance will better understand your horse’s unique needs and assist you with selecting the right policy.
A reputable company will also offer different policies to meet your requirements. For example, some companies offer primary medical and surgical-only policies. These policies only cover the cost of lifesaving surgeries and usually have annual limits of up to $10,000.
Review Your Policy
Insurance is a dynamic contract, and you should review it throughout the year to ensure your policy remains compliant. It would help if you also worked with an agent who can adjust it to reflect changes in your horse’s use or value, address changes, and coverage changes like adding or deleting loss of use cover.
When reviewing your policy, you should consider your level of risk tolerance. A lower excess will reduce your premium as it transfers more risk to Underwriters. However, you need to be aware that it will limit your coverage.
To save money, you should look at a limited mortality policy offering less comprehensive coverage than a complete mortality policy but with much cheaper premiums. Many companies also offer primary medical/surgical policies, which cost a flat fee based on the coverage limit and the deductible. These policies can be added to a full mortality policy or purchased separately.