Pet Insurance: Pros and Cons

By Leslie Brown

It is difficult to find much information against having pet insurance. There aren’t that many “cons,” except for the monthly costs. That, and making sure that the insurance will cover your pet, even when he or she has a pre-existing condition, has genetically related problems, or is an older pet. The majority of people who don’t have insurance for their pet eventually have to pay for expensive procedures or for costly wellness checks.

According to statistics, one in three pets need veterinary treatment each year, so pet insurance is an important consideration. Veterinary treatments tend to be costly, and some can even turn out to be far beyond affordable. After the scare of a pet illness or injury wears off, you realize that your pet has racked up quite a vet bill, sometimes over a thousand dollars just to start. If this type of situation happens frequently or even more than once, you might think it’s time to look into pet insurance.

You are not limited to the type of pet you can insure. Exotic pets can also be covered, such as parrots, rabbits, snakes, lizards, turtles, Pygmy goats, llamas, chinchillas, possums, and pot bellied pigs.

In recent years, the state of veterinary science has changed dramatically, as has the economics of running a veterinary practice. Today, vets might offer treatments that were unheard of just a few years ago. However, along with these innovations, you will also get costly and sometimes unaffordable bills. Still, if you are the kind of person who would do anything in order to save your pet's life or keep up with his or her wellness, pet insurance is a good alternative to going into debt. If your pet gets sick, you can be sure that the best care will be provided quickly and will be affordable.

Pet insurance can cost $2,000 to $6,000 or more over the lifetime of a pet. Some people think that you are better off going without pet insurance and instead putting the money you would have spent on premiums into a savings account for your pet. They think the chances might be slim that you'll ever need to shell out that much for veterinary treatment.

How does pet insurance work? Pet insurance is very similar to your own health insurance plan. There are several different pet insurance plans to choose from that vary in the amount of services and cost. Many pet insurance plans cover annual checkups, lab tests, vaccinations, medications, spaying/neutering, and emergency visits. For most plans, you visit the vet, pay for the service, and then submit your claim to the pet insurance company.

The range of coverage varies, as does the deductible and reimbursement percentage. Some pet insurance plans will pay up to 80 percent of your vet bill after you have reached the $100 deductible. In addition, pet insurance plans allow you to choose any veterinarian you want. You do not have to worry about veterinarians being in a network like you commonly do with your own health insurance.

Coverage can also depend on the age of your pet, but you can find pet insurance premiums as low as $10 to $15 per month. As your pet gets older, the cost might increase slightly because older pets are prone to more illnesses and more veterinarian visits. This rise in cost can be offset by the amount of money you save with pet insurance.

When choosing a pet insurance plan, you will be faced with a multitude of available pet insurance companies. Many of these companies have websites that can provide you with an instant pet insurance quote. You can find the costs for pet insurance plans that are from basic to comprehensive and specify whether you want to pay the pet insurance premium monthly or once a year. You can also ask your vet for possible pet insurance options.

Be aware of not just the monthly and annual costs, but also of the difference in deductibles, co-pays, and so on, because they might limit the payouts by incident. Your pets can be covered for ongoing claims, meaning that each case will be considered on an individual basis, and the needs of the pet and owner will likely be met.

To get the best out of pet insurance, you should ideally cover your pets as soon as you can, preferably when they are young, because some pets are born with birth defects and other chronic problems which might not appear for a number of years. And then you could be faced with unexpected costly surgery.

This doesn’t mean that you shouldn’t get insurance when your pets are older. Many times your pet will hit a certain age and it seems as if they are struck with several health problems at once. Read each plan carefully and make sure it's a good one for the money. For a "mid-price" plan, make sure it covers emergency calls.

Of the estimated $45.4 billion that Americans spent on their pets in 2009, $12.2 billion (27 percent of the total cost) was devoted to veterinary care. Pet insurance is very expensive, and like home insurance, you can invest hundreds of dollars and your pet might not require using the health insurance until they are much older. Pet owners with insurance are still a small minority. One of the reasons people do not get pet insurance is because of having an older pet. The older your pet, the more you'll have to pay in premiums. Some insurers don't cover pets older than nine-years old. You don't really see your investment pay off until your pet has a major problem.

In the end, pet insurance can simply give you some peace of mind and the chance of not having to choose between your pet's health and your finances.

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