Pet Insurance - The Pros and Cons

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Many pet owners will do everything they can to make sure their pets have long, happy, and healthy lives.

Just as health care technology has dramitically advanced, so has veterninary science. Illnesses previously untreatable even 10 years ago are now routinely resolved, thereby helping out pets live longer lives.

Veterinary Care Inflation and the Effect on Your Wallet

The American Kennel Club reports that veterinary costs have risen 60% since 2000. This is not surprising, since numerous veterinary science breakthroughs have occured, and illnesses that had gone diagnosed in the past are now routinely treated.

Pet owners are grateful for these veterinary advances, yet the rising cost to care for our pets is an important factor to many.

Many times, unexpected veterinary expenses wreak havoc with the family budget. Our neighbor’s German Shephard, a wonderful dog named Duke, began to suffer from hip dysplacia. Our neighbors got Duke treated and he’s now happy and healthy again. The cost of Duke’s treatment was $2100 - no drop in the bucket.

Should You Consider Pet Insurance?

Pet insurance has been around for decades in Europe, but is relatively uncommon in the United States and Canada. Much like health insurance for us, pet insurance drastically reduces the risk of caring for your pet. Perhaps most importantly, it can eliminate the heart wrenching decision of euthanizing your pet vs. incurring a large financial hardship.

There are several different pet insurance companies. Some policies pay for all types of veterinary care. Others pay only for accidents and illnesses. Some will cover your pet regardless of age, while certain plans have numerous deductibles and restrictions.

The decision to consider pet insurance depends upon your viewpoint as a pet owner. Sadly, many pet owners consider their pets disposable and won’t get their pet medical treatment if it becomes too ill. Conversely, you’re a good candidate for pet insurance if you’re willing to devote a specified amount of time and money to treat and heal your pet.

Typical Plans and Costs

Most pet insurance plans offer coverage for as low as $10 per month. Typically, there is a $50 deductible, and an annual cap of about $10,000. Pet insurance plans for senior pets (normally 8 years and older) will run a bit more, normally $29.95 per month, but be aware that only one company we know of accepts senior pets for coverage. Costs for cats and dogs generally run the same.

Remember, pet insurance is designed to help you and your pet through significant illnesses and injuries. It’s easy to budget for routine expenses like annual check-ups, shots, flea preventative, etc. Some pet insurance plans offer discounts on routine care, but be prepared to use a contracted (network) veterinarian, similar to a PPO/HMO set up for humans.

The Story Of Two Pets

Another of our neighbors is a pet owner to both a dog and cat. His cat, a 6 year old tabby named Whiskers, incurred a respiratory infection late last year, with veterinary bills totalling almost $1600. Earlier in the year, his 12 year old border collie mix, Diamond, was found to have a small malignant tumor during a routine physical. Fortunately, Diamond was able to be treated and recovered well, but the veterinary bills were large - $1500+.

Fortunately, pet insurance significantly reduced his out-of-pocket expense. Instead of incurring roughly $3100 in unplanned expenses, his total outlay to treat his pets amounted to $250 … a $50 deductible for an adult cat and a $200 deductible for a senior dog.

Researching Pet Insurance

There are several pet insurers in the marketplace, so do your homework and make sure your policy is right for your pet. If you feel comfortable budgeting for routine annual costs like check-ups, immunizations, flea preventative, etc. there’s no need to pay for routine coverage.

If you determine pet insurance is right for you and your pet, here are some important factors to consider when choosing the right policy for you and your pet:

The four most important factors to look for in a pet insurance policy are guaranteed acceptance, choice of veterinarian, fixed premiums, and unlimited accident coverage. You want your pet to be accepted into a pet insurance policy, no matter their age. If you have a comfort level with your veterinarian, you want to be able to use that vet and not be assigned an unfamiliar vet. Paying more in premium and deductibles as your pet ages isn’t necessary, as there are pet insurance companies who will keep your premiums the same even as your pet ages. Finally, unlimited accident coverage is important, since accidents can happen at any time and with any frequency.