How Purrfect is Pet Insurance?

 By Catherine Powell

Image courtesy Pixabay

If you’re like me, you have a four-legged family member or two in your household.  These furry felines and canines not only pull on your heartstrings, but they also pull on your purse strings since they rely on you for their care and feeding.  While you can buy pet food in bulk and learn how to trim their coats and nails to cut grooming costs, one thing it’s tough to cut corners on is veterinary care.  During the past few years, the cost of going to the vet has skyrocketed.  Where in decades past, pets were relatively cheap to keep healthy, since 2001, the cost of veterinary care has far outpaced the rate of inflation.  Of course, so too have the number of new diagnostic tools, surgical procedures, and pharmaceuticals available for our furry friends.  Twenty years ago, pet care was pretty basic.  Back then there were no such things as joint replacement surgery, laser treatments, MRIs, or Cat scans for pets.  Nowadays they’re common.  So too are 4 or even 5-figure vet bills.  If you’re looking to keep your pets healthy without making your bank account look sick, you may wish to consider pet insurance.  

Currently, 95% of pet vet bills are paid out of pocket by pet owners.  While there are 186 million dogs and cats living with families in the US, less than 3.5 million pets are currently covered by insurance.  That means pet expenses can take a bite out of any family’s monthly budget.  When you consider that a simple examination by a veterinarian costs $30-$40, an x-ray can set you back $90 or more, and vaccinations cost $50 and up, it isn’t unusual for a visit to the vet to set you back $100-$200.  If your dog or cat needs a more extensive diagnosis or treatment, the costs can climb much further.  Add an MRI or endoscope and your bill could set you back $1,000-$2,000.  Even pet meds can cost anywhere from $30-$200 per month these days.  Just like people, the older an animal gets, the more likely it will be to need more extensive medical care.  Unfortunately for pet owners, there’s no Obamacare available for our canine and feline friends.  That’s why more and more Americans are turning to pet insurance to help lighten the load.

How pet insurance works is similar to the way health insurance works.  A pet owner pays monthly premiums to an insurer to have the insurer pick up part of the cost when veterinary treatment is rendered.  Just like health insurance for people, pet insurance offers several options from which to choose:

1. Accident-Only Policies – These policies only pay out when a pet has been injured due to an accident.  That means if it's hit by a car, you’re covered up to the limit minus the deductible listed on your policy.  A co-pay may also apply.  While these policies don’t cover office visits or treat illnesses, if you’re looking for bargain-basement prices on a policy, this kind of coverage could be worth a look.  

2. General Wellness Coverage – Also referred to as Basic Coverage, this kind of insurance kicks in to help pay for vet visits, exam fees, diagnostic tests, routine x-rays, medications, and certain kinds of surgery. If your dog or cat needs to be vaccinated, dewormed, spayed/neutered, and/or microchipped,  this kind of policy can help.

3. Accident and Illness – Every pet owner knows that unexpected visits to the vet or pet ER can be stressful for both pet and owner.  They can also be quite expensive to deal with.  A&I policies are designed to cover more serious pet medical issues, such as broken bones, poisoning, urinary tract infections, joint or tendon injuries, digestive issues, allergies, and cancer.  Many of these policies include coverage for emergency care, hospitalization, MRI or CT scans, lab tests, surgery, medications, and physical therapy.  

What’s covered and what’s not? -  Unlike typical HMO or PPO plans for humans, with pet insurance you may choose any veterinarian you wish to use when it comes time to treat your pet.  However, if your pet has a pre-existing condition, you can expect the insurer to deny your claim.  Also, unlike health policies for humans, most pet insurance companies require pet owners to pay for treatment upfront, only to be reimbursed after the fact.  They typically only offer to cover 70-80% of the cost of treatment and most policies have strict limits as to how much coverage the insurer is willing to offer.  These limits may be per incident, per year, and/or over the lifetime of the policy. Elective procedures and organ transplants are also excluded from most pet policies.   

How much does pet insurance cost? -  While costs vary due to the breed, age, and condition of the animal, entry-level policies start as low as $11-$16 per month for accident-only policies, $20-$25 per month for basic coverage, and $29-$49 per month for accident and illness policies.  Obviously, premiums, just like costs, are likely to rise as time goes on, not to mention how often your pet requires medical attention.  That means you can expect to get a cheaper rate on younger pets and higher rates for older dogs or cats.  Don’t think you can sign up for a policy only after you realize your pet needs an expensive procedure either.  Just as with other insurance policies, there’s a waiting period of up to two weeks before you can use pet insurance.  

Are pet policies available for more exotic pets? – If you own a macaw or some other kind of exotic pet, you’ll find fewer insurers from which to choose.  While there are a few willing to write a policy on exotic pets, the vast majority prefer to cover only dogs and cats.    Your best bet to find an exotic pet insurer would be to talk to your veterinarian.

What’s the best way to find the right kind of coverage for your pet? – While anyone can do a web search to find scores of companies that offer pet health insurance, weeding them out can take a lot of time.  One of the best ways to find the right coverage for your pet is to consult with your veterinarian.  He or she has no doubt dealt with a number of pet insurers and can give you the ins and outs of various plans offered.  While no policy will cover 100% of the costs involved in treating your pet, the right policy can help you find the purrfect balance when it comes to keeping your dog or cat healthy for years to come without breaking the bank.

Catherine Powell is the owner of A Plus All Florida, Insurance in Orange Park, Florida.  To find out more about saving money on all your insurance needs, check out her website at http://aplusallfloridainsuranceinc.com/