When choosing pet insurance, you may come across the term “co-payment”, sometimes shortened to “co-pay”.
A co-payment means that if you make an eligible claim, you agree to pay a percentage of the claim costs, with your insurer contributing the remainder, subject to your excess and any other policy limits or deductions.
Understanding how a co-payment works is important because it can affect both the price of your insurance and how much you’ll need to contribute if you make a claim.
How does a pet insurance co-payment work?
Unlike an excess, which is usually a fixed £ amount, a co-payment is calculated as a percentage of the eligible claim.
For example, imagine you have an eligible veterinary claim of £1,000 and a 20% co-payment applies.
Before considering any excess or other deductions, a 20% co-payment would mean you contribute £200 towards the eligible costs, with your insurer contributing towards the remaining amount.
In practice, an excess may also apply, so it’s important to consider the two together.
Is a co-payment the same as an excess?
No. An excess and co-payment are two separate contributions you may need to make towards a claim.
Your excess is a set amount deducted from eligible claim costs. A co-payment is a percentage contribution towards the remaining eligible amount.
For example, if you made an eligible claim for £1,000, with a £125 excess and 20% co-payment:
£1,000 claim – £125 excess = £875
A 20% co-payment on the remaining £875 would be £175.
You would therefore contribute £300 in total (£125 excess + £175 co-payment), while your insurer would contribute £700, assuming there were no other applicable limits, exclusions or deductions.
Related guide: What is an excess in pet insurance?
Why do pet insurance policies have co-payments?
A co-payment shares some of the cost of eligible veterinary treatment between the pet owner and insurer.
Depending on the insurer and policy, agreeing to contribute towards future claims can help make the insurance premium more affordable.
The trade-off is important to understand: you may pay less for your insurance, but you’ll need to contribute more yourself if your pet requires treatment and you make a claim.
Does Scratch & Patch offer co-payment options?
Scratch & Patch offers policies with either a 0% or 20% co-payment option.
With a 0% co-payment option, you don’t make an additional percentage contribution towards an eligible claim, although your applicable excess and any other policy limits or deductions still apply.
With a 20% co-payment option, you contribute 20% towards the relevant eligible claim costs in addition to your applicable excess.
Your Policy Schedule will show the co-payment that applies to your individual policy.
Can choosing a co-payment make pet insurance cheaper?
It can. By agreeing to contribute a percentage towards future claims, a policy with a co-payment may have a lower premium than an equivalent option without a co-payment, although pricing will depend on your pet, chosen cover and other rating factors.
This means it’s useful to consider more than the monthly or annual premium when comparing options.
A lower premium may be attractive, but think about whether you’d be comfortable paying your percentage contribution if your pet required significant veterinary treatment.
Related guide: How much does pet insurance cost?
What happens with a large claim?
Because a co-payment is percentage-based, your contribution can become more significant as veterinary costs increase.
Imagine your pet required treatment resulting in several thousand pounds of eligible costs. With a 20% co-payment, you’d need to contribute your percentage share in addition to your applicable excess.
This is why it’s important to consider what you could comfortably afford if you needed to claim, rather than choosing your insurance based solely on the premium.
Should I choose a policy with a co-payment?
There’s no single option that’s right for every pet owner.
A policy with a co-payment could suit you if you’re comfortable sharing a greater proportion of future veterinary costs in return for a potentially lower insurance premium.
Alternatively, you may prefer an option without a percentage co-payment if you’d rather reduce the amount you’d need to contribute towards an eligible claim, even if the premium is higher.
When comparing your options, consider the premium, excess, co-payment, vet fee limit and overall level of cover together.
Understanding your contribution before you claim
Pet insurance can help protect you against unexpected veterinary costs, but it doesn’t necessarily mean you won’t have anything to pay yourself.
Your excess and co-payment determine how much you contribute towards eligible claims, while your policy’s limits, exclusions and other terms determine what’s covered.
Understanding these before you buy can help you choose a policy that balances the amount you pay for your insurance with the amount you could afford to contribute if your pet needs treatment.
Co-payments with Scratch & Patch
Scratch & Patch offers a choice of 0% and 20% co-payment options on all our cover levels, giving you greater flexibility when choosing your cover.
Whichever option you choose, check your Policy Schedule and policy documents so you understand your excess, co-payment and other applicable terms before you need to make a claim.
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