Does Pet Insurance Make Sense For You And Your Pet?

The emotional bond we share with our pets makes us want to do all we can for them. In exchange for all the love they give us, we want to ensure they live long, 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.

Costs of Veterinary Care Continue to Rise

Veterinary science has seen remarkable breakthroughs in the past two decades, but just as in the human health sector, costs have risen. Many pet illnesses and diseases are being treated that often went undetected in the past.

While veterinary medical advances extend our pet’s quality of life, the financial impact for pet owners cannot be overlooked.

One of our neighbors recently incurred a $2100 veterinary bill to treat his German Shepard’s hip dysplacia. Similarly, another friends cat developed a stubborn urinary tract infection, necessitating lengthy diagnostic and follow up treatment, to the tune of $1400.

What is Pet Insurance, and Does it Make Sense For You?

In Europe, pet insurance has been common for decades, but is relatively new to the United States and Canada. The main purpose of pet insurance is to reduce the financial risk of caring for your pet. Also, it eliminates the agonizing decision of having to choose between treating your pet’s illness or injury vs. your finances.

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.

Anyone considering pet insurance should ask themselves this question: “Will I devote a reasonable amount of time and money to treat and heal my pet?”. If your answer is “yes”, you’re a good candidate for pet insurance. Sadly, many pet owners are forced to choose between finances and their pet’s health. Worse, other pet owners view their pets as disposable, and simply won’t treat the animal if it becomes too ill.

Typical Plans and Costs

Pet insurance starts as low as $10 per month. If your pet is a senior, normally defined as age 8 and over, it will cost more. Further, pet insurance plans typically have a small deductible, i.e. $50, and an annual cap, which is usually $10,000.

All pet insurance plans offer coverage for accidents and illness, while some offer coverage for routine expenses like annual check ups and flea preventative. Sometimes, pet insurance companies that offer routine care coverage are set up with contracted veterinarians, similar to a PPO or HMO health care arrangement. For policies that cover unplanned illnesses and injuries, you can use the veterinarian of your choice, and these plans may also offer some discount element for routine veterinary services.

How It Works In Real Life

A business associate told us of his two beloved pets, 6 year old cat “Whiskers” and his 12 year old border collie mix “Diamond”. Whiskers was diagnosed with an ongoing respiratory ailment, and just a few months later, Diamond was found to have a malignant tumor and needed immediate treatment. Luckily, he had taken out pet insurance on both pets just months before Whiskers’ visit to the vet. With coverage through Instant Pet Insurance, he was paying $9.95/mo. for Whiskers and $29.95/mo. for Diamond, less a small multi-pet discount. All told, Whiskers veterinary bills totaled $1330, and Diamond racked up an $1100 tab.

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:

1. Look for Guaranteed Acceptance, no matter your pet’s age. 2. The ability to use the veterinarian of your choosing. 3. Fixed Premiums/Deductibles: Your premium shouldn’t increase as your pet ages. 4. Unlimited Accident Coverage: Accidents happen, particularly with pets.