Cheap horse insurance can be good or bad. A good thing is that it can save some money; A bad thing would be if it were poor coverage or the company were unresponsive. Low payments alone don't necessarily mean the company or the policy is bad. It could mean just the opposite. If companies are run really well and have a very large number of clients. They could have lower rates with superior coverage. In this article, we'll be looking at the different kinds of insurance available and the reasons behind those differences.
Mortality insurance is one type. This, for horses, is similar in concept to life insurance for humans. Although horses are thought of and treated more as property than as living beings. So this type of insurance focuses more on financial reimbursement than on proper burial or disposal of the horse. Often, mortality coverage is available without buying veterinary coverage, but not the other way around as we shall see.
The second type, loss of use insurance, is pretty much what the name suggests. This type of policy reimburses the beneficiary in the event of the horse's loss of ability to perform the function for which it was purchased. This includes physical injuries and age, disease, but not the death of the horse. The criteria for determining this value and payouts and how and when they need to be paid out are the most complex. There are also many options on what to do with the useless animal. Sometimes the insurance company will take possession of the horse, sometimes not. There's no fixed rule.
Another type is medical/veterinary insurance.Very often, animals are euthanized, simply because the owners can't afford the veterinary treatments to recover an injured or sick animal. That is the purpose of equine veterinary coverage. This type of policy is often only created in conjunction with the mortality policy and cannot be obtained without it. It's easy to buy a mortality policy without medical coverage, but not the other way around. It can be done, but it's difficult and rare.
Mortality rates of are 2.5 to 4% of the assessed value of the horse. These numbers represent the total yearly payments for the policy. The value of medical/surgical coverage varies greatly, and is not based on the value of the horse. It is based on other factors such as local veterinary rates and the cost of surgical services. The requirements and formats of these policies are as varied as the companies who create them.
It can all become very complicated, and the best thing to do is consult with several agents and companies to get a feel for what's available as a whole before making any kind of decision on your own.
There's no reason to expect that getting low rates on your insurance means getting poor coverage.
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