A contribution payment is where you pay a percentage of the treatment costs.
Most pet insurance policies (but not all) require you to pay a contribution payment for older pets. Some now require you to make these payments for pets of any age.
The percentage will depend on the policy but generally 10-35%.
Contribution payments are also referred to as co-insurance payments or variable excess payments.
Calculation of Contribution Payments
Contribution payments are calculated after the fixed excess has been deducted.
The calculation is best illustrated by way of an example.
Example 1 – 10% Contribution Payment
Say the treatment cost is £500 and your standard excess is £80.
If there were no contribution payment the insurance company would pay £420.
If there was a 10% contribution payment you would pay £42 of the £420.
This is in addition to the standard excess.
So in this case you would pay £122 of the £500 treatment cost.
Example 2 – 35% Contribution Payment
Taking the same example with a treatment cost of £500 and standard excess of £80.
If there was a 35% contribution payment you would pay 35% of £420 which is £147.
So together with the fixed excess of £80 you would pay £227 towards the treatment cost.