Excess is the amount you pay towards a vet bill before your insurer starts covering the cost. Every pet insurance policy has one. It's the bit most people don't think about until they actually make a claim and discover their £2,000 vet bill doesn't result in a £2,000 payout. Understanding how excess works, and how it combines with co-pay, is the difference between a nasty surprise and a planned expense.
What is excess?
Your excess is a fixed amount deducted from every claim you make. If your excess is £100 and your vet bill is £800, the insurer pays £700 and you pay £100. If your vet bill is £150, the insurer pays £50 and you pay £100. If your vet bill is £80 (less than your excess), the insurer pays nothing and you pay the full £80.
The excess exists for two reasons. First, it discourages small, frequent claims that would cost the insurer more in admin than in payouts. Second, it keeps premiums lower by ensuring you share some of the financial risk. The higher your excess, the lower your monthly premium, because you're absorbing more of the cost yourself.
Fixed excess vs percentage co-pay
These are two different things, and many policies have both. They confuse a lot of people because they both come out of your pocket, but they work differently.
Fixed excess is a set pound amount: £50, £100, £150, £200, or £250 are the most common. You pay this amount once per claim (or once per condition per year, depending on the policy). It doesn't change based on the size of the bill.
Percentage co-pay is a percentage of the claim amount (after excess is deducted) that you pay. The most common co-pay is 20%, though some policies charge 10% or 35%. Co-pay is calculated on what's left after the fixed excess has been subtracted.
Here's the thing that trips people up: these two stack together. You don't pay one or the other. On a policy with both fixed excess and co-pay, you pay the fixed excess first, then the co-pay percentage on what remains.
Worked example: £2,000 vet bill
Let's say your dog needs knee surgery costing £2,000. Your policy has a £150 fixed excess and 20% co-pay. Here's the maths:
Step 1: Subtract the fixed excess. £2,000 minus £150 = £1,850.
Step 2: Calculate co-pay on the remaining amount. 20% of £1,850 = £370.
Step 3: Add up what you pay. £150 (excess) + £370 (co-pay) = £520.
Step 4: What the insurer pays. £2,000 minus £520 = £1,480.
So on a £2,000 bill, you're paying £520 out of pocket, and the insurer covers £1,480. That's 74% covered by insurance. Not bad, but quite different from "the insurer pays the bill" which is what some people expect.
Another worked example: £5,000 specialist referral
Your cat needs cancer treatment at a specialist veterinary hospital. Total cost: £5,000. Policy has £100 excess and 20% co-pay.
£5,000 minus £100 excess = £4,900. Then 20% co-pay on £4,900 = £980. Your total: £100 + £980 = £1,080. Insurer pays: £3,920.
On a £5,000 bill, you're still paying over £1,000 yourself. For many people, that's manageable. But if you're on a tight budget, even the insured portion requires you to find £1,080 upfront (since most UK insurers reimburse you after you've paid the vet, rather than paying the vet directly).
A small claim: £350 vet visit
Your dog has an ear infection. The consultation, tests, and medication cost £350. Policy has £150 excess and 20% co-pay.
£350 minus £150 = £200. Then 20% of £200 = £40. Your total: £150 + £40 = £190. Insurer pays: £160.
You're paying £190 out of £350. The insurer covers less than half. For small claims like this, the excess eats most of the benefit. This is why some people with high excesses don't bother claiming for minor issues; the payout barely exceeds the hassle of filing the claim.
Voluntary vs compulsory excess
Most policies have a compulsory excess set by the insurer (you can't change it) and an optional voluntary excess that you choose to add on top.
Compulsory excess is typically £50-100 for standard policies, though it varies by insurer and breed. High-risk breeds often have higher compulsory excesses; some insurers set £200+ compulsory excess on French Bulldogs and English Bulldogs.
Voluntary excess is extra excess you choose to add in exchange for a lower premium. Common options are £0, £50, £100, £150, or £250 voluntary excess on top of whatever compulsory excess already applies.
They stack together. If your compulsory excess is £75 and you choose a £100 voluntary excess, your total fixed excess is £175 per claim.
How choosing higher excess reduces premiums
Increasing your total excess from £100 to £250 typically reduces your monthly premium by around 15%. The exact saving varies by insurer, but here's a realistic example for a 4-year-old Labrador on lifetime cover:
- £100 total excess: £24 per month (£288 per year)
- £150 total excess: £22 per month (£264 per year), saving £24/year
- £200 total excess: £21 per month (£252 per year), saving £36/year
- £250 total excess: £20 per month (£240 per year), saving £48/year
- £350 total excess: £18 per month (£216 per year), saving £72/year
The saving of £48 per year (from choosing £250 over £100 excess) means you need to not claim for about 3 years to break even. If you claim once, you pay £150 more out of pocket at claim time. So the higher excess gamble pays off if you claim less than once every 3 years, and loses if you claim more often than that.
For young, healthy pets of low-risk breeds, higher excess usually makes financial sense. For older pets or breeds with known issues, lower excess gives you more predictable costs at claim time.
Per-claim vs per-condition excess
This distinction matters more than most people realise.
Per-claim excess means you pay the excess every single time you submit a claim. If your dog needs 4 vet visits for the same ear infection over 6 weeks, and you submit 4 claims, you pay the excess 4 times.
Per-condition excess means you pay the excess once per condition per policy year. Those same 4 ear infection visits? You pay the excess on the first claim only. The remaining 3 claims have no excess deducted. This saves you money on conditions requiring multiple treatments or follow-ups.
Most UK pet insurers now use per-condition excess, but not all. Check the wording carefully. "Per condition per year" is the most consumer-friendly option. "Per claim" is the least.
When co-pay kicks in
On most UK pet insurance policies, co-pay is triggered by your pet's age. The most common arrangement:
- Under age 8: no co-pay (you just pay the fixed excess)
- Age 8 and over: 20% co-pay on top of the fixed excess
Some insurers start co-pay at 7, others at 9. A few (like Animal Friends) apply 10% co-pay from any age. A handful of premium policies (like Petplan's Covered for Life) have no age-related co-pay at all, but charge higher monthly premiums in exchange.
The age at which co-pay starts is fixed in your policy terms at the point of sale. But some insurers have been known to change co-pay terms at renewal for existing customers. Always read your renewal terms, especially the year your pet turns 7 or 8. If co-pay has been added or increased, that's a material change to your cover.
Choosing the right excess for you
There's no single right answer. It depends on your cash reserves and your pet's risk profile.
Choose lower excess (£50-100) if: you'd struggle to find £200+ at short notice for a vet bill; your pet is a high-risk breed likely to claim; your pet is over 6 and entering the higher-risk age bracket; you want maximum payout per claim and minimal out-of-pocket cost.
Choose higher excess (£200-350) if: you have savings to cover a few hundred pounds at claim time; your pet is young and healthy with a low-risk profile; you mainly want insurance for catastrophic costs (£2,000+); you want to minimise your monthly premium.
One approach that works well: set your excess at the amount you could comfortably pay from savings without stress. If you have £500 in an emergency fund, a £250 excess gives you a buffer. If your savings are thin, keep excess low so you can actually afford to use the insurance when you need it.
Try our pet insurance calculator to see how different factors affect your estimated premium.