Is Self-Insurance a Viable Option for All Pet Owners in Singapore?

Imagine this: your pet suffers a fall and needs surgery to repair a fracture. The vet bill comes in—S$2,000, maybe more. Would you be ready to pay it on the spot?

For some pet owners, this is where self-insurance comes in. Instead of paying monthly premiums to an insurer, you set aside money regularly to cover potential veterinary expenses, particularly emergencies. It’s a personal risk management strategy—you're the one absorbing the financial impact if something goes wrong.

Given the rising cost of veterinary care, some cost-conscious pet owners may explore whether managing expenses independently could offer more control than paying for insurance premiums. Whether you're considering pet insurance or thinking of going it alone, understanding how self-insurance fits into your pet care plan is essential. This quick guide helps break it down.

What is Self-Insurance in Pet Healthcare?

Self-insurance means setting aside personal savings specifically for your pet’s medical care instead of purchasing an insurance policy. You do not pay premiums to an insurer. Instead, you maintain your own emergency fund to cover veterinary expenses directly.

This approach gives you full control over your funds. You decide how much to save, when to use it, and where to keep it. There is no claims process or policy approval—just access to your own resources when your pet needs care.

However, self-insurance is a personal risk strategy. You are fully responsible for covering any costs that arise, including emergencies, surgeries, or long-term treatments. Whether this approach is effective depends on your ability to save consistently and retain access to those funds when needed.

Common Misconceptions About Self-Insurance

Self-insurance is sometimes mistaken for a passive or low-commitment approach to pet care. In reality, it requires forward planning, financial discipline, and a clear understanding of the potential costs involved.

It is not simply about putting aside small amounts occasionally. Effective self-insurance involves setting purposeful savings targets—often hundreds or thousands of dollars—based on real treatment scenarios such as diagnostics, hospitalisation, or chronic illness management.

It may also not suit everyone. If you are uncertain about your ability to save consistently or maintain a financial buffer for large, unexpected expenses, a pet insurance plan may provide more reliable support and peace of mind.

How Much Do Vet Visits in Singapore Typically Cost?

Here’s a general breakdown of possible vet costs across different scenarios:

Severity	Examples	Estimated Costs
Minor	Vaccinations	S$45 to S$90
Moderate	Tooth Extraction	Up to $500+
Major/Unexpected	Fracture Repair	S$2,000+

Without a financial buffer, a single major health issue could quickly become a burden. Whether you’re self-insuring or relying on pet insurance, having a plan makes all the difference.

Pet Insurance: How Does Risk Transfer Work?

Pet insurance is built on the idea of risk transfer. Instead of covering unexpected medical costs entirely out of pocket, you pay a fixed monthly or annual premium to an insurer. In return, the insurer helps cover eligible expenses when something serious happens, depending on the policy terms you choose.

This can be helpful if you're worried about large, unexpected bills. For example, if your pet needs surgery costing S$4,000, a typical plan might reimburse a portion of that cost, sometimes up to 80%, depending on your coverage tier, co-payments, and exclusions.

Plans such as PetCare by Liberty Insurance generally cover:

• Accident
• Medical Expenses
• Third Party Liabilities
• Wellness Care

Curious about coverage? Explore PetCare plans to see what suits your pet’s needs.

Self-Insurance vs. Pet Insurance: Pros & Cons

Factors	Self-Insurance	Pet Insurance (E.g. PetCare)
Flexibility	Full control over how much, when, and where to spend	Structured coverage with defined benefits and limits
Cost Control	No premiums or fees—only save what you choose	Predictable monthly or annual premiums
Coverage Certainty	No exclusion or claim denials—you're using your own funds	Covers large, unexpected costs, but is subject to policy terms
Access to high-cost treatment	Depends on how much you've saved	Enables access to costly surgery or emergency care, including urgent non-elective procedures needed to prevent life-threatening situations or further health deterioration.
Risk Protection	You carry 100% of the financial risk	Risk is shared—insurer absorbs large expenses
Peace of Mind	May feel uncertain without a solid fund	Reduces anxiety during emergencies
Financial Discipline	Require regular savings and self-control	Require regular payment of insurance premium based on coverage level and benefits

Who Might Benefit from Each?

Deciding between pet insurance and self-insurance depends on your pet’s health, your financial habits, and how comfortable you are with managing unexpected costs. There’s no one-size-fits-all answer, but the right option depends on what fits your lifestyle and risk tolerance.

Before choosing, consider:

• Could you afford a large vet bill at short notice?
• Are you financially disciplined enough to save consistently?
• Would you feel more secure knowing your pet is covered by insurance?
• Does your pet have existing health conditions, or are they generally healthy?

Your answers to these questions can help guide you toward the option that suits you best.

Self-Insurance Might Work Best If You:

• You’ve owned pets before and understand their typical healthcare needs
• Have the financial discipline to manage, set and control your budget
• You can reliably set aside funds each month for emergencies
• You’re confident about handling large, one-off costs when they arise

Example:
Joan owns a three-year-old mixed-breed cat in good health. As a long-time pet owner, she prefers to manage veterinary expenses on her own. She sets aside S$150 each month into a dedicated fund for medical costs. This gives her flexibility to respond to health needs as they arise, based on her financial habits and comfort level.

Note: If you have more than one pet, managing self-insurance becomes more complex. Differences in breed, age, and health mean that projected medical needs and savings targets can vary significantly. This requires periodic review and adjustment of each pet’s budget, especially as they grow older or develop new health issues.

Pet Insurance Might Be Better If You:

• You’re a first-time pet owner
• Want the ability to offset the cost of accidents or new illnesses that occur after coverage starts
• Prefer to pay a premium to get peace of mind by protecting your pet against unexpected accidents and/ or illnesses, depending on coverage levels.

Example:
Zhi Wei recently adopted a Shiba Inu puppy. As a first-time dog owner, he opted for a pet insurance plan that covers new illnesses and accidents. This gives him peace of mind knowing he won’t need to cover large treatment costs on short notice, especially in emergencies like surgeries or sudden injuries.

Conclusion

In Singapore, both self-insurance and pet insurance offer practical ways to plan for veterinary expenses. Self-insurance gives you full control over your funds, but it requires financial discipline and a willingness to absorb unexpected costs. Pet insurance, by contrast, spreads risk to an insurer in exchange for fixed premiums and structured coverage.

There is no single right answer—your decision depends on your pet’s risk profile, your budget, and your comfort level with financial uncertainty. Whether you self-insure, enrol in an insurance plan, or combine both approaches, the most important step is to prepare in advance, so you can support your pet’s care when it matters most.

Disclaimer: The information provided in this article is for general information only and is not intended to provide a complete descriptions of all terms, exclusions, and conditions applicable to every insurance product or service offered by Liberty Insurance. Liberty Insurance makes no representations or warranties of any kind whatsoever that the information and materials contained on our website are suitable for your needs, are complete, timely, reliable, or are free from errors, inaccuracies or typographical mistakes. Please refer to our website terms and conditions (Terms and Conditions | Liberty Insurance Singapore) for the terms of use and refer to the policy wordings of the products for more details on the relevant terms and conditions