Pet Insurance - The Argument For And Against

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

Years ago, procedures like MRI's, specialized therapy, and laser surgery were unheard of for pets. Now, these procedures are increasingly common as veterinary science continues to advance.

Veterinary Care Inflation and the Effect on Your Wallet

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.

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.

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

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.

In a way, pet insurance companies are like health insurance companies. They may or may not cover certain health conditions, depending on the policy restrictions. Some pet insurance companies will not accept senior pets, similar to health and life insurance companies reluctance to cover senior citizens.

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

Pet insurance plans cost basically the same for cats and dogs. Most start at $10 per month, with a nominal deductible, usually $50. Senior pets, if insurable, cost somewhat more, typically $25-$35 per month. At this time, we only know of one company that accepts senior pets, normally defined as age 8 and above.

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

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.

Make Sure Pet Insurance Fits Your Pet's Needs - And Yours

When researching pet insurance companies, make sure the policy fits your needs and the needs of your pet. If you're comfortable budgeting for the routine pet health expenses like check ups, flea preventative, etc. then there's no need to pay a pet insurance company for those expenses. You may want to consider choosing a pet insurer that protects you from large, unplanned veterinary expenses.

As a pet owner, your experience tells you that most pets will incur some unexpected veterinary treatment in their lifetime, whether it's illness or accident. If you feel it's important to be prepared for these unexpected expenses, consider a pet insurance policy. Consider these factors when choosing:

Look for guaranteed acceptance, whether your pet is a kitten or a puppy or a senior pet. Also, if you're comfortable with your vet, make sure the pet insurance policy gives you the freedom to go to any vet. Further, make sure your policy premium doesn't increase as your pet ages. Last but not least, look for unlimited accident coverage. Accidents can happen at any time, particularly to pets.