Are pet insurance policies worth the money?
Pet insurance policies have been available in the United States for going on three decades now, but they have never really caught on until recently.
A decade ago, according to the American Pet Products Association, a mere 1 percent of dogs were covered. As veterinary fees rose by about two-thirds since then, now we’re up to roughly 3 percent of dogs covered. That figure is expected to eventually jump to 10 percent, according to insurer Nestle Purina PetCare (PurinaCare).
Even Wal-Mart may be considering offering pet insurance (at least in Canada). That’s when you know business is booming — when the big retailers start frothing at the mouth. But back to that low number right now… 3 percent. In America we’ve got 78 million dogs, and only 3 percent are covered by insurance — a drop in the bucket. What gives?
Many More Pets Insured in Europe
Our pals across the Atlantic are faring much better: For example, the coverage rate is 20 percent in Britain. And in Sweden the rate is a mind-blowing 48 percent, according to Trupanion.
Why the high coverage rates in Europe? For starters, Sweden is the birthplace of pet insurance: it all started there in 1924 with the first policy ever written for a dog. But more important, the plans are better in Europe. They typically cover 100 percent of vet bills. Here in the United States, by contrast, plans tend to cover only 80, sometimes 90 percent after you reach your deductible.
Let’s Talk About How Much It Costs
How much are premiums? In the United States, they range from about 10 bucks a month to $100 or more, depending on the plan.
Low-Cost Pet Insurance
There are a number of low-cost pet insurance policies available, and you should choose one that will fulfill your dog or cat’s specific needs and requirements. Research details of the various policies before deciding on purchasing a particular policy. I can personally recommend a company called Embrace Pet Insurance (it’s less than $18 a month for basic coverage of my pet). Of course, you should shop around — but stick with reputable insurers.
You will definitely want to read the fine print on any plan. Pre-existing conditions are notoriously not covered. Lower-end plans cover only emergency care — but those are often the priciest bills to be stuck with. Pet insurance companies will allow the policyholders to go to certain veterinarians based on the policy purchased. When you decide to buy low-cost pet insurance, definitely find out whether the policy will cover your visit to the veterinarian. You can also consult your veterinarian regarding whether a particular pet insurance policy will cover expenses and visits to his or her clinic.
Certain policies may be cheaper than others, but they might not be able to cover any major expenditure like surgeries. Always check the kind of coverage provided by each policy, and then decide which is best.
What are the factors that determine which plan is right for you?
- Breed – There are some breeds that are more prone to injury and illness than others. Your veterinarian will help you decide on the kind of medical policy required for your pet based on its breed.
- Age – As your dog gets older, it is more susceptible to illness and injury. The age of the dog or cat is a major factor that will influence whether you can find cheap pet insurance.
- Prior major illness – If your pet had any pre-existing illness in the past, you must also take this aspect into consideration before opting for a particular policy.
So take a look around and do some diligent research, and you should easily be able to find the best low-cost pet insurance policy that is right for you.
Is Pet Insurance Worth It?
Okay, let’s take a step back. Is it even worth the expense of having pet insurance?
Well, maybe not. Consumer Reports analyzed a few of the top plans (VPI, ASPCA, 24PetWatch and Trupanion) last year and determined that for most healthy dogs and cats, coverage is likely not worth the cost. Over the lifetime of the pet you’ll pay several thousand dollars in insurance premiums!
The final advice? Start socking away money in an emergency fund. That way you have cash set aside for the inevitable unexpected veterinarian bills. And really, it all comes down to this: Only you can decide if pet insurance polices are worth the money.
Photo: Andrew Morrell Photography/Flickr
