Pet insurance, just like any other kind of insurance we have, is something we all rely on to cover those unexpected costs that inevitably come up. Pet insurance offers our clients the option to deflect some of the costs involved with keeping your furry friend healthy. Choosing a pet insurance company can be overwhelming, offering multiple plans to choose from and exclusions that can be confusing. It is important that you compare the many different benefits, services, and prices, and know which pet insurance company is reliable.
20 years ago, the cost of a major veterinary expense was minimal and few pet owners relied on insurance. However, with rising expenses for veterinary care, the statistics show that more and more pet owners are purchasing insurance, approximately 20% annual growth, for that peace of mind related to their personal finances and for a desire to have the best veterinary care for their pets.
INSURANCE COMPANIES...
Pet insurance is set up similarly to indemnity insurance, which is what home and auto insurance is. It is not affected by treatment outcomes, days in the hospital, doctor incentives, etc...
The basics for most companies are as follows:
- Most companies cover between 70-90% of costs after the deductible.
- The premium is determined primarily based on the deductible you choose, the age, breed, and geographic location.
- Not all companies offer coverage for annual wellness care (i.e. vaccines, heartworm tests, flea control, labwork, radiographs).
- The majority, if not all, have annual or bi-annual increases in their premiums based on inflation or other factors, and may have an annual cap.
- All companies have limitations on “pre-existing conditions”, and may have a time limit to what is considered “pre-existing”.
- Some companies do not cover congenital or hereditary conditions, chronic problems, or certain breeds and or pets beyond a certain age who are predisposed to multiple conditions (i.e. breed-specific conditions).
QUESTIONS TO CONSIDER...
- How does pet insurance work?
- Are veterinary specialty services covered?
- Are hereditary conditions covered?
- How long must my pet be free of a condition for it not to be considered “pre-existing”?
- What is the reimbursement based on (i.e. the vet bill; usual or customary fees; benefit schedule)?
- What is the annual or per incident dollar limit?
- After viewing an estimate from my veterinarian, how do I know if all of it will be covered?
- Is there an option for coverage for wellness or annual exam related expenses?
- Do they cover complementary or alternative therapies (i.e. acupuncture chiropractics, etc...)?
- Are dental cleanings covered and if so, how about the radiographs (x-rays)? Tooth extractions?
- What if my pet needs emergency care?
- When does coverage begin after I sign up?
- What are the exclusions?
- Which is the best plan for my pet’s breed?
Some of this information may not be provided on their websites or brochures, so it is important to call the company directly to find the answers to these and other questions you may have.
FINAL THOUGHTS...
The major benefits of buying insurance would be:
- To avoid the risk of costly veterinary care, whether planned or unplanned, that goes beyond the household budget.
- A peace of mind knowing that there is a financial backstop for emergencies.
- Opportunity for better pet care because economics are less of a barrier.
Researching pet insurance companies can be confusing. It is important that you do your part and research which plan is most appropriate for your family situation. If pet insurance is not an option for you, consider a ‘Health Savings Plan’ (HSA) of your own, where you can put money aside in a separate account each month for your pet. We encourage you to talk to one of our staff members about which company we recommend for your pet....they are worth it!
PET INSURANCE - IS IT WORTH IT?
By Dr. Zach Anderson, DVM
August, 2011
