When to drop your insurance?

[FootPerfect]

I bought my horse a year ago for $7,000 and had a loan on him. So I insured him with all the major medical, surgical etc. It runs about $550/year.

This week I will be paying him off. Originally, I thought I would drop the insurance when the loan was paid off... but I have to admit, it's been really nice to know that I have it. I have not needed it.

The horse has been very healthy (knock wood) so I really don't have any reason to keep it. If I had to replace him I could, no real issue there. So should I keep it? Drop it down a notch or just get rid of it? He'll never be a fancy FEI horse, he's just my buddy for lower level dressage and eventing. I've had other horses and have never insured them.

Thoughts?

[county]

Only horses I insure are stallions when I buy them, after they have bred enough mares to pay for themselves I drop it. I have enough horses if I were to insure them all the premium money would be so high it just doesn't make sense IMO to insure them all.

[horsetales]

[QUOTE=FootPerfect;3940729]I bought my horse a year ago for $7,000 and had a loan on him. So I insured him with all the major medical, surgical etc. It runs about $550/year.

This week I will be paying him off. Originally, I thought I would drop the insurance when the loan was paid off... but I have to admit, it's been really nice to know that I have it. I have not needed it.

The horse has been very healthy (knock wood) so I really don't have any reason to keep it. If I had to replace him I could, no real issue there. So should I keep it? Drop it down a notch or just get rid of it? He'll never be a fancy FEI horse, he's just my buddy for lower level dressage and eventing. I've had other horses and have never insured them.QUOTE]

You can always drop his value down with the main goal of having major med on him. It would give you peace of mind if something bad happened and at least something if it was really bad and lost him. I'm assuming if you took out a loan for 7K, you don't have that sitting around for a colic surgery. If you are emotionally attached to the horse its nice not to have to worry about the cost first thing - I'm speaking from my personnal exp.

[saultgirl]

I bought my horse a year ago for $7,000 and had a loan on him. So I insured him with all the major medical, surgical etc. It runs about $550/year.

This week I will be paying him off. Originally, I thought I would drop the insurance when the loan was paid off... but I have to admit, it's been really nice to know that I have it. I have not needed it.

The horse has been very healthy (knock wood) so I really don't have any reason to keep it. If I had to replace him I could, no real issue there. So should I keep it? Drop it down a notch or just get rid of it? He'll never be a fancy FEI horse, he's just my buddy for lower level dressage and eventing. I've had other horses and have never insured them.

Thoughts?

How about just full mortality and liability insurance? That's all I have, and it's not very expensive.

[FootPerfect]

Thanks all. Here is what I got from the insurance person:

1. Reduce the market value of horse to $5400.00. This would bring your annual premium down to the minimum premium of $200.00 and would allow you to keep the Major Medical at $250. The total premium would be $450, a savings of $59.00. I highly recommend this option, as Major Medical coverage is great to have.

2. Reduced his value to $5400.00 and go with the Surgical only option. That is an additional $85 dollars. The premium for the year would be $285.00.

3. Reduce his value to $5400.00 and just have the mortality policy with out the Major Medical or surgical endorsements. That would be $200 premium for the year.

[SMF11]

I just lost my dog after he spent two weeks in intensive care. Our family had decided not to go on vacation this year to economize . . . let's just say that we could have taken our family of five to the Caribbean for the price of his vet bills. I am glad I was able to live my values of not deciding whether an aminal lived or died because of the vet bills. But boy do I wish I had medical insurance on that dog! I'm getting it on the other dogs and cats I have because I cannot afford to do this again!

The basic decision you have is: are you willing to put down your horse if you are faced with the choice of high vet bills versus euthanasia? If you are, and I am not saying that's wrong, then skip the insurance. But if you are faced with the possibility of an $8,000 bill and DON'T want to put the horse down without giving him a chance -- get the insurance!!!

[Ibex]

I just lost my dog after he spent two weeks in intensive care. Our family had decided not to go on vacation this year to economize . . . let's just say that we could have taken our family of five to the Caribbean for the price of his vet bills. I am glad I was able to live my values of not deciding whether an aminal lived or died because of the vet bills. But boy do I wish I had medical insurance on that dog! I'm getting it on the other dogs and cats I have because I cannot afford to do this again!

The basic decision you have is: are you willing to put down your horse if you are faced with the choice of high vet bills versus euthanasia? If you are, and I am not saying that's wrong, then skip the insurance. But if you are faced with the possibility of an $8,000 bill and DON'T want to put the horse down without giving him a chance -- get the insurance!!!

What SMF said!

I keep mine insured because I wanted the Major med; the mortality is secondary.

[stillpoint]

Keep it for the major medical if nothing else. In most of our years insuring, we have been relatively claim free. . . but the times we have used the major medical, the insurance has more than paid for itself. You never know when you might REALLY need it! We use Great American and they are wonderful about handling claims and very reasonable about exclusions going forward from a claim.

[ReSomething]

If you have the insurance keep the medical. Sometimes you just don't know what all those vet bills are going to add up to and even the vet may not be able to predict your final bill.

[IronwoodFarm]

Personally, I would keep the insurance as is, unless you really can't afford it.

My sister dropped the mortality/mm on her show hunter a few years back "to save money." He colicked a couple months later, went to the vet hospital, had two surgeries and ultimately had to be euthanized. She ended up with a vet bill over $8K and no money to buy another horse. It literally took her 3 years to pay off the bill and get the money for a new horse.

Insurance is for a catastrophic loss. If you have deep pockets, go without it. But if you don't, keep paying the premium just in case you'll need that coverage.

[LSM1212]

You do know, the minute you drop the insurance, your horse WILL get hurt. :)

I'd keep it. I have it and thought long and hard about dropping it this past year. But it did come in handy a few years back... I had my horse only 3 months and he got hurt. And was laid up for a YEAR! And I won't tell you how much the bills were for that year (diagnostics, treatments, etc). :)

I did lower his value the second year when I re-newed as I knew with the injury that he had, he wasn't worth what he was before and probably never would be. He's sound now and doing very well... but from a value and selling point of view... he has definately depreciated!

[Lori B]

Never. Uh-uh. Would not own a horse without it.

Less than a month after I got Katy insured, she got a pasture injury that turned out to be a suspensory lesion. Vet bills for this injury will probably total around $2500, plus the board markup for keeping her in a stall for 6 weeks. Insurance has already paid for itself.

Keep it, and adjust the horse's value as appropriate. But keep it if you can.

[Kate66]

Always a tough one. I have never ever insured a horse and have had them for 20 years with no major injuries or illnesses....until last fall when my guy colic'd badly and for a month was in an out of hospital. The bills came to around $5k. However - had I paid even just $200 for 20 years it would have been about the same amount. So, that's the game with insurance, it's all about risk and who wants to take it. You don't know what will happen. You can pay it for the next 3 years and be out of pocket $1,650 with never an injury or you could pay your premium next week and have a $10k bill the next day. I don't think there is a right or wrong in this one, just do whatever you think is less risky.

[mjrtango93]

Keep it! Escpecially the major medical, from your post it said you took out a loan on the $7K to buy him so like others am assuming you don't have a couple grand to drop here or there for injury/colic/replacement if he were to die. Admit it all horses are out to kill themselves, it just how successful they are in the process. My coming 7 year old that I have had for 2 years just got me my premium back on his insurance for the next 5 years for the claim the insurance just paid on him. Idiot tore his superficial flexor in turn out and had $4K in treatment! Also you never know when they will do something stupid, my last young competition horse before this one cast himself in his stall and ruptured 5 axial ligaments in his fetlock getting back up, he was euthanized 2 weeks later. You just never know, and I don't have deep pockets that can shell at thousands at a time.

[WorthTheWait95]

In the past my dad had only carried insurance on my horses that were $50K+. When I stopped showing I bought a young horse for $10K and kept just one of my show horses who was to be semi retired so dad dropped everything on him as well. He was due to 'age out' of insurance in a year anyway.

Literally the month after he canceled the policy my older guy colicked and needed surgery. The vet bill was close to $9K. Luckily he was on strongid (with proof of documentation from our vet) so we paid the bill in full but were then reimbursed for all but $1K of the cost.

Dad bought full major/medical and mortality on my young horse the next day. :lol: The cost of it is just worth it in terms of peace of mind IMO.

[asterix]

If you can afford the first option in your email (dropping value, keeping major med), do it.

NO question.

ONE injury could easily cost that much, and then what?
I have had horses for whom the premium was a loss every year. Thank god. I have NEVER regretted that, and let me tell you, driving to the hospital, horse colicking in the trailer, you are very, very happy you shelled out a few hundred bucks 3 months ago.

[hollyhorse2000]

Dropping value is OK; dropping the insurance entirely isn't. I like to sleep at night! :-)

[JohnDeere]

Chime with everyone else. $450 is not a lot of $ for what it buys.

I pay less than $500/yr. Thats one show to me. When Dobbin coliced and died the vet bills were over $4K. Then Great American paid his value. It will take 20+ years to pay back in premuims what they paid to me. Ive not had another claim before or since (yet) but it will be a cold sleeting day in hell before i go without insurance.

JMHO.

[fordtraktor]

Well, my perspective is that if you have the money to pay for a colic surgery/similar event, then you don't necessarily need insurance. If that would push you over the edge, you do.

Like county, I own too many horses to make insurance worthwhile. The price of premiums would pay for about a colic surgery a year, and in my 20 years of horse ownership I have experienced a total of three injuries that about equal a colic surgery price-wise. Thus, I have saved myself about the price of 17 colic surgeries by not having insurance.

I also keep at least $15,000 in an "emergency fund" that could cover a horse illness, house problem, etc. at all times. If my horses get sick there is never a question of whether I can pay to fix them. If I couldn't do this I would consider insurance.

[Catalina]

I would rather be out hundreds of dollars a year in unused insurance premiums then out thousands for a vet bill.

[Janet]

I drop insurance about age 20.

[FootPerfect]

Thanks all! I really appreciate it. I think I will keep the basics and drop his value down for now...