Insure or self insure?

[CarolineJ]

Dilemma time. Merlin's insurance renewal is through and has gone up to £33 a month from £29 - he turned 16 this year (according to his passport, which I'm not convinced is right).

He has an exclusion on his right hind hock and now they've excluded his right front fetlock as well, because I emailed them last month to report a potential claim - I'm hoping that doesn't mean they're going to turn down the claim if/when it goes in (not sure we'll reach the excess, still trying to get scans of the tendon arranged) because it goes over into a new policy year.

If he was going to be prone to laminitis I think we'd have seen signs this year, because he's barefoot, but he hasn't been the least bit footy, and at a previous owner's yard he managed to eat half a bin of unsoaked beet shreds with no ill effects, so his digestive system seems pretty robust - I'm wondering if now is the time to cancel the insurance and start putting £30 a month into a savings account for him? He's got at least another 8 months off for the tendon injury and he's kept at home, so I don't need 3rd party for the moment. Anyone here self-insure?

 

[Lippyx]

I don't have a horse but have done in the past. It's a risk as if you cancel and start putting money away, whose to say that after the first month something happens and obviously one months saving is not going to cover it. Have you shopped around for a better price. Also, check about the exclusion on the leg you haven't claimed for. Surely they can't exclude if you haven't claimed?

 

[The Fuzzy Furry]

If you have at least £500 in savings and £2k+ you can use on a credit card till you have saved up, then go for the 'not insured'.

 

[Honey08]

I would always go for the not insured option if you have some money put aside. We used to do that - we had £5k that we could use if we needed it. About two weeks after we cancelled the insurance, one horse got kicked and needed a fair amount of treatment, and all our tack was stolen! That was a bad year though. TBF, I think the vets were better with us when the horses weren't insured.

 

[CarolineJ]

Thanks - will keep paying until I know if the current issue is going to reach a claimable level and then cancel. Our vets are so reasonable that in all probability it won't - call out, 45 minute examination and 10 sachets of anti-inflammatories = £53 and the excess is £500 on the policy.

 

[jeeve]

Your insurance policies are good in the UK, over here, very pricey.

The only horse I insured the insurance company went broke within the 1st 12 months, after that self insured. I have had to pay for 2 x operations of about $2 500 each and some vet bills for up to $1 000 on other occasions. But if I took premiums, the number of horses and the total in vet bills I am well ahead, being self insured.

A friend had a $15 000 vet bill. They were uninsured (most people are in Australia) they paid it, and figured if they averaged out their vet bills they were still in front as well.

 

[Elbie]

They can exclude on the new policy year - it's irrelevant whether you claim or not. Insurance is all about assessing risk. Therefore, if you have notified them that your horse had an injury/illness, they will exclude on the new policy year as there is a 'risk' your horse may suffer from it again. However, as it happened under your old policy year, you can still claim for it under that. Basically, anything that happens prior to your renewal is all good. Plus, exclusions are not normally permanent. I think there is a major failing with insurance companies not explaining these. Generally, chronic conditions like arthritis etc are permanent exclusions, but thinks like the lameness - ask if/when this can be removed. Normally, if your vet can confirm your horse has been free from the lameness for a year they will remove it.

As for self-insurance - seeing as your excess is fairly high anyway it may be worth setting up a "just in case" fund. However, be careful as (from working in equine insurance) I've seen some fairly pricey claims, i.e. colic surgery for £7k. You need to think, if you were in the situation where you had a potentially expensive surgery/treatment, would you have your horse PTS if you could not afford the treatment?

Also, with Third Party - may be worth getting if you go out to shows or hack out.

 

[canteron]

I do the self insured route, but I also have a religious 'do not touch' fund of several thousand and also put £50 per horse away in a fund every month. When (and if??) this reaches a level I may release the original 'do not touch' fund!!

I think if you can be financially disciplined then the Self-Insure route is good, but if you are a 'spend every penny and be dammed' type then its not going to work for you?

I agree, that by the time you have a high excess and several things excluded, you do have to weigh it up carefully.

 

[brucea]

I self insure now

I have 3rd party, death, theft straying and rider for £146 for my 4 boys.

Last month was the last of paying full whack for all of them - it was costing me £1600+ for the year. So I'm putting the money away in an acount and it's being kept for emergencies

In the end of the day the risk is mine. The insurance policies were little use anyway with exclusions and excesses.

We've only ever had 2 claims where we have used insurance over the last 10 years - and they came to £300 each once the excess had been paid! So having forked out around £14-16,000 in the last 10 years, who is the fool?

Goose - golden egg - killed.

TBF, I think the vets were better with us when the horses weren't insured.

So do I.

And I would never put my horse through invasive colic surgery anyway. It's not overwhelmingly successful, horses I have known have collapsed after a few weeks home. It's not fair to do this, I would PTS. It would demolish me to do so, but that's what I would do.