What is a 'co-payment' in pet insurance?

The short answer

A co-payment (or ‘co-pay’ for short) is the share of a vet bill you pay when making a claim on your insurance, usually a percentage of the total amount. Your insurer deducts the co-pay amount after excess, then pays you the rest of the accepted claim total. Co-payments are most common for older pets, but some insurers also offer a voluntary co-payment option when you buy a policy. This can help lower your premiums, but means you’ll contribute more towards the cost of any claims. 

Still confused? Here are fast answers to some of the co-payment FAQs we hear most.

How does a co-payment work in pet insurance?

It depends on the type of co-payment on your policy. For older pets, a senior co-payment is automatically deducted from each vet fee claim once your pet turns a certain age. The age it starts being deducted depends on your insurer, so it’s important to check this when choosing a provider.

At Napo pet insurance, once your pet turns 9, a 20% co-payment gets applied automatically. This means in the event of a claim, you’d contribute 20% towards the vet fee cost after excess.

Senior pet co-payment is common in pet insurance, simply because our pets are more likely to need higher levels of healthcare as they get older.

Example: how a co-payment is calculated

If you have a Napo policy without co-payment applied, here’s what it looks like when you make a £1,000 vet fee claim that’s accepted.

With Napo, your excess would be set at £99 and we’d pay out the rest of the bill – either directly to the vet, or to you.

A sample claim with a standard Napo policy not including co-pay.

At Napo, there are three scenarios in which a co-payment would be applied, and you’ll contribute 20% towards the cost of any claims:

• if when renewing your policy, you chose to add a voluntary co-payment

• if when buying your policy, you chose a lifetime co-pay product 

• if co-payment is required because your pet is aged 9 or above

If you make a claim, your excess is deducted first, with the 20% co-payment then calculated on the remaining claim amount.

In any of these cases, the same £1,000 claim would instead look like this:

A sample claim with Napo where the customer has a 20% co-pay policy.

So with any excess deducted first, you’d then be responsible for 20% of what’s left. And, as above, Napo would pay the rest of the claim either directly to the vet or to you as preferred.

Co-payment vs excess: what's the difference?

An excess is a fixed amount you pay towards an accepted claim. Your excess amount can vary depending on your insurer, your policy selection and what section of your cover you’re claiming from.

Generally, excess is only deducted from the first claim for a new condition each policy year, whereas co-payment is a percentage fee deducted from every accepted vet fee claim, if it applies to your policy. 

At Napo, we have:

• a £99 excess, deducted per condition, per policy year

• a 20% co-payment option, deducted per claim 

Whether you’re making voluntary or mandatory co-payments, this fee is deducted from every vet fee claim after excess and any other deductions.

Does co-payment affect my annual cover limit?

No, it doesn’t. Excess and co-payment are both deducted directly from your claim payment (rather than your policy cover limit), so there are no surprises when it comes to your overall cover balance after you claim.

Can I choose to add a co-payment?

Yes, some insurers allow you to add a co-payment when you buy a new policy or at renewal. Unlike a senior co-payment, which is mandatory and does not impact your premium, you can choose to add a voluntary co-payment as a way to reduce your premium - but the trade-off is you’d pay more if you need to claim. Whether it’s cost effective overall depends on how much you claim and the difference in premium.

Some insurers let you add or remove the voluntary co-payment at renewal, so you aren’t permanently tied in.

If you’re a Napo customer, you have the option to add or remove a 20% co-payment at renewal for pets under 9 years old. Once your pet turns 9, a 20% co-payment becomes mandatory for all policies.

Can you switch co-payment on or off?

That depends on your insurer’s policy terms. If you’re with Napo and your dog or cat hasn’t turned 9 yet, you can opt in or out of voluntary co-payment at renewal. 

Interested? Our friendly customer support team will be happy to talk you through what this looks like - just drop an email to support@napo.pet.

Mandatory co-payment contributions mean insurers can continue to cover senior pets as they grow into their ‘wise years’ at reasonable premiums, including cover for any ongoing or breed-specific conditions. 

Just so you know - if you’re a Napo customer and choose to remove voluntary co-payment at renewal, any future claims for conditions your pet has shown signs or symptoms since you've been with us (regardless of whether you claimed for them or not) will continue to include a 20% co-payment. 

This may differ with other insurers, so it’s always important to check the terms and conditions of their co-payment option.