WHEN Daisy May Peberdy brought home puppy Dasher, little did she know the mischief he would get in to – or the eye-watering costs of fixing it.
From scoffing chocolate cake to surgery complications, the now four-year-old golden labrador, has racked up vet bills running in to thousands of pounds.
But instead of insurance, a simple budgeting trick has meant she’s built up an emergency fund for her much-loved canine companion, and doesn’t have to turn to debt to cover the costs.
The 26-year-old social media executive, who lives in Leicester, in the Midlands, with her partner, Matthew, 33, told The Sun: “As the owner of a dog which has a penchant for raiding the bins, I’m no stranger to visiting the vet.
“Over the years, I’ve often ended up with bills running into hundreds – if not – thousands of pounds. I feel that self-insuring by saving for vet bills is better value than taking out pet insurance.”
Self-insurance simply involves you putting money into a savings account, rather than paying for pet insurance premiums.
Some people prefer this option to forking out monthly – or annually – for pet cover.
Daisy and her partner got Dasher in 2020. It didn’t take long for the bills to come rolling in.
“Dasher was a lockdown puppy,” said Daisy.
“We’ve been besotted with him from the start, but he also comes with a hefty price tag.”
This was something Daisy learned the hard way.
“We got him neutered when he was around 16 months old, and that was an operation that cost around £250,” said the dog-lover.
Unfortunately, due to complications after the procedure, Dasher had to go in for regular check-ups.”
In the first year alone, the lab racked up costs of more than £1,000.
“To make matters worse, I couldn’t drive at the time,” said Daisy.
“This meant I had to either stump up the cash for taxis or rely on my dad for lifts – and find the money to pay him for petrol.”
It was at this point that Daisy realised she needed to have an emergency fund in place for Dasher.
“I didn’t want to pay for pet insurance as I’ve read reviews about policies not paying out on claims,” she said.
“For me, the idea of forking out monthly for insurance – and then the provider not paying out – is too high a risk.”
“I discovered a simple savings trick to help me manage the cost of vet bills,”
Daisy May Peberdy
Last month (March), pet owners were warned they may be overpaying for medicines for their beloved animals.
The Competition and Markets Authority (CMA) said it was launching a formal market investigation after an initial review of the vet market raised ‘multiple concerns.’
There are fears that millions could be stumping up more than necessary on costly vet bills.
As a guide, separate recent figures from ManyPets found the average cost of a UK vet consultation was £53.82, a price which does not take into account having to pay for any additional tests or medication.
With costs on the up, you may feel there’s no option but to pay for pricey pet insurance. Yet this can take a huge bite out of your finances.
Like many other types of insurance, pet premiums are on the rise, and up 13% in 2023, according to pricing consultants Pearson Ham
New research from Go.Compare found that average annual premiums can easily cost up to £400.
And for pedigree cats and dogs, costs can be a lot higher because they’re prone to hereditary conditions. You could find yourself paying £700-£800 a year, and potentially even more.
Pet insurance: everything you need to know
PICK YOUR POLICY: There are different levels of pet cover.
The more comprehensive policies offer higher payouts for a greater variety of conditions and are more expensive.
Basic cover is more affordable though you will have a cap on payouts for treatment.
UP THE EXCESS: Opting for a higher excess helps reduce insurance prices. The drawback is you have a sizeable cost to meet if you need to claim.
Keeping cash to cover this excess in an easy-access savings account is one way to offset the risk.
SHOP AROUND: Search for the best deal on policies using comparison sites — it’s worth checking multiple ones as many have exclusive offers with insurers.
Try GoCompare and CompareTheMarket.
SPENDING POWER: Once you have found a policy, buy it through a cashback app or website to get money back.
Even when buying through a comparison site, you can click through sites such as Quidco or TopCashback for cashback.
PRE-EXISTING CONDITIONS: Insurers will often refuse to pay for treatment for conditions your pet had before a policy is taken out.
Older pets are also more difficult to insure.
It could be better to stick with an existing policy if your cat or dog is elderly or has an ongoing illness.
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BUDGETING TRICK
Daisy feels that self-insuring gives her more control.
“I would much rather know I’ve got money slotted away in savings,” she said.
“It’s simpler knowing exactly how much I have to cover vet bills. This system also means I have money to pay for things that wouldn’t be covered by pet insurance, such as taxi rides to the vet.”
After researching online, Daisy found out about digital bank, Monzo.
“I discovered a simple savings trick to help me manage the cost of vet bills,” said Daisy.
“For the past few years, I’ve been slotting money away into ‘Monzo pots’ to help me budget.”
With Monzo pots, you can keep money for important things, such as vet bills, separate from the rest of your balance.
In fact Daisy currently has more than 15 ‘active pots’ with Monzo.
“I have pots for various different savings goals – including one for vet bills,” she said.
“I contribute between £25 and £50 a week to the dedicated ‘Dasher’ pot, and end up with close to £2,600 a year.”
Slotting money away in this way has helped Daisy stay on top of her finances, and has put away over £6,000 so far in her ‘Dasher pot’.
“It means I never get caught short when it comes to vet bills,” she said.
In the last four years, Daisy’s ‘doggy pot’ has come in useful multiple times.
“On one occasion, Dasher had to be rushed into the vet for eating an entire chocolate cake,” said Daisy.
“I was left holding a bill for more than £300. On another occasion, he ate leftover pizza dough which caused his stomach to expand. This cost me more than £600.
“Thanks to the pot, I’ve never had to compromise on my cheeky pup’s health.”
“You need to go in with your eyes wide open,”
Andrew Hagger
More recently, Dasher went to the vet for a standard appointment to get his claws clipped.
“This ended up costing more than £100,” Daisy said.
“Once again, having money put to one side was such a relief. For me, it alleviates stress when it comes to Dasher’s health.”
In addition to the ‘pots’ feature, Monzo customers can also ‘round-up’ money automatically, schedule regular deposits, and opt to take part in savings challenges to boost their pots.
“For the past two years, I’ve been contributing £2 to a pot each time it rains,” said Daisy.
This has totted up to £500 so far, on top of her fund for Dasher.
Aside from her dedicated ‘vet bill’ pot, having money squirrelled away in savings more generally helps the animal fanatic budget for the everyday costs associated with owning a pet.
“In the midst of a cost-of-living crisis, having money tucked away definitely helps,” said Daisy.
“We’ve really noticed the cost of pet essentials going up. A six-pack of dog food can now cost up to £9.”
Things are even harder for Daisy who has to pay for additional training sessions for Dasher.
“He has a nervous temperament as he wasn’t able to socialise properly as a puppy due to Covid restrictions,” she said.
“To try and help with this, we pay for up to four sessions a month.”
This costs the couple £40 a time.
“We love our pet so much,” added Daisy.
“But all these costs can soon mount up. Budgeting carefully and saving regularly via Monzo has been a real godsend.
It has helped us ensure we can keep on top of everything and not get into any financial difficulty.”
Alternative saving and budgeting options
HAVING an emergency fund can help you out with any unexpected costs, not just surprise vet bills – for example a car or washing machine breakdown.
An emergency fund can lessen the shock of needing to find money at short notice, especially as the cost of living crisis rages on.
Michael Royce, senior policy manager at the Money and Pensions Service, said: “Having an emergency fund also means you’re less likely to have to borrow when this happens.
“Credit is a very useful tool when used correctly. But if you don’t have savings you might rush into a decision without doing your research and picking the right product.”
Building up even a small amount could make all the difference.
He says: “Saving smaller, regular amounts is often more effective than saving larger amounts now and again. It gets you into the savings habit and you’re not overcommitting.
“It also lets you budget your spending from week to week or month to month more effectively.”
You don’t need a Monzo account, there are other simple ways you can put money to one side.
These include the ‘cash-stuffing method’ where you put actual hard cash into envelopes at the start of each week or month.
But bear in mind you won’t be able to earn interest.
A better option is likely to involve you transferring cash to a savings account on a regular basis.
Options include an instant access account, regular saver or cash ISA (individual savings account).
Remember to shop around for the best savings rates using a site such as Moneyfactscompare.co.uk.
Setting up a direct debit or standing order with a different account, so they money isn’t sitting alongside their normal household budget, is one of the easiest ways to get saving, says Micheal.
Other banks and apps offer similar features to Monzo for saving and budgeting, like Plum, Starling, Chip and Emma.
Some high street banks also offer these features as part of current accounts.
Borrowing cash should always be a last resort and you should always check you are getting all the help you are entitled to first.
If you don’t have an emergency fund to fall back on though and do need to take out a loan, it is important to find the cheapest rate, so you don’t end up racking up big interest charges that can add to your financial pressures.
Always make sure you read the terms and conditions, and understand the full amount you’ll repay over the term of the loan – as well as any potential penalty charges or late fees.
Check out your options to access low-cost or even interest-free cash, in our guide.
What are the pros and cons of self-insuring?
While self-insuring may sound appealing, you need to be aware this comes with both pros and cons.
On the one hand, there’s a chance your pet won’t get ill or injured, meaning you never have to draw on the money you have squirrelled away.
That said, if, say, your dog or cat ends up needing surgery, the amount you have saved might not be enough to cover the cost – especially if this runs into thousands of pounds.
Andrew Hagger, financial expert at Moneycomms.co.uk, said: “By self-insuring, you’re taking a gamble, but if you’re lucky and your pet doesn’t need any treatment then you could be quids in.”
If you don’t need to fork out, you then build up a safety net in the form of a credit balance – plus a bit of interest – and anything you don’t spend is yours to keep.
The problem is, there is always a risk with this strategy.
“If you squirrel money away each month and don’t need to visit the vet for, say, 12 months, you’ll have built a decent balance,” said Andrew.
“But there’s nothing to say you won’t suddenly face an emergency and need to cough up a four-figure sum for treatment.”
Also bear in mind that the older your pet gets, the more likely it is they may require veterinary help.
“You need to go in with your eyes wide open,” added Andrew.
“And if you do decide to go down the ‘self-insurance’ route, you must always keep the ‘vet fund’ money in separate accounts.
“This will help you avoid the temptation to spend it on something else.”
Are you eligible for help?
Organisations, such as the Blue Cross and PDSA, provide free vet treatment to sick and injured pets if their owners are on Universal Credit or other low-income benefits.
Use the eligibility and postcode checkers on their websites.
Also check out Animal Trust (animaltrust.org.uk), a not-for-profit group which runs practices that do not charge consultation fees, only fees for treatment or medication.
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