How Much Does A Racehorse Insurance Cost?

Insuring a racehorse in the equestrian world is a common practice done by racehorse owners. After all, some racehorses cost more than a car, and you insure your car every year, so why wouldn’t you insure your horse?

Horse racing is a demanding sport that can lead to many injuries and even deaths. Therefore, horse insurance is quite important if you look from a business perspective.

But how much does it cost? And what are the types of insurance to look for?

Let’s dive deeper into racehorse insurance and find out whether or not you should do it, and how much it will cost you per year.

How Much Is Racehorse Insurance?

The essence of racehorse insurance, much like any treasure worth its salt, lies not just in the shimmer but in securing it. 

According to the folks who eat, sleep, and breathe horses, insurance costs can sashay around 3-5% of your horse’s value annually if your equine friend is more pet than Pegasus, but once we cross over to the land of racehorses, things get a bit more… spirited.

But how spirited are we talking? If your horse gallops around with a price tag of, say, a cool $100,000, then prepare to pony up around $10,000 annually for insurance charges​​. Yes, you read that right. That’s not chump change by any standard, but then again, neither is owning a racehorse.

The insurance cost isn’t the same if you have a pet horse or is instead your animal is among the best horse racing picks for today.

According to most racehorse owners, the average cost of owning a racehorse is anywhere from $8,000 to $11,000 per year. Of course, this includes other things like non-veterinary costs like routine shoeing, feeding, housing, and more. But still, it is quite expensive to own a racehorse.

Bear in mind that we haven’t calculated the unexpected vet visits, which can cost up to $150 for a single visit, and an emergency colic surgery could cost you anywhere from $5,000 to $10,000.  

The Insurance Options

Insurance for racehorses isn’t a one-size-fits-all gig. It’s more of a buffet, but instead of questionable shrimp cocktails, you’re picking between mortality, major medical, and liability insurance among others. Each slice of this financial pie comes with its own price tag and peace of mind.

Therefore the cost of your insurance is based on what plan suits you best.

• Mortality Insurance: This is your bread and butter, covering the worst-case scenario. The cost fluctuates between 2.6-4% of your horse’s value. Think of it as life insurance but for your horse, because accidents happen, and sometimes, they’re expensive​​. In most cases, insurance companies will give you a mortality limit based on your horse’s value, and an emergency colic surgery limit of around $3,000 for a premium package that will cost you around $250 annually (for under $10,000 horse). I’d say it is a pretty good deal. Of course, this depends on your horse’s value. Don’t expect to turn up with the next Secretariat and pay the minimum insurance fee.
• Major Medical: If your horse decides to play superhero and injures itself in the process, Major Medical has got you covered. Costs for this vary, but for a policy limit of $5,000, you’re looking at an average of $200 annually. This doesn’t include your vet hospital stay costs, so keep that piggy bank handy​​.
• Liability Insurance: Horses are big, powerful animals, and when they decide to redecorate the track with their hooves, you’ll want liability insurance. It’s like the friend who bails you out of trouble, except you have to pay them. Liability insurance might cost you between $50-$150 annually, a small price for peace of mind​​.

The Real Question: To Insure or Not to Insure?

Now, this is where it gets personal. Is horse insurance worth the hay? If your horse’s value is north of $10,000, insurance is not just recommended; it’s practically a necessity. The cost of veterinary care alone can make you wish you had invested in goldfish instead​​.

But here’s the kicker: the value of insurance isn’t just in the payout; it’s in the peace of mind. Knowing that you’re covered in case your horse decides to audition for a role in an action movie and ends up with more than just a bruised ego can be comforting.

So, if you own a horse, it is definitely a good idea to insure it. Yes, it costs a lot of money, but you should look at it as a business. After all, your racehorse races for money, and it is a good idea to insure it.

Final Words

Horse racing insurance can definitely put a dent in your pocket. The horse racing industry is cruel, especially when it comes to costs. That’s why most racehorse owners are having trouble breaking even.

However, insurance drives the world, and it is better to have a piece of mind than worry about what will happen to your horse and whether you’ll have the money to support it in the future.