Should You Buy Pet Insurance?
Author Bio: Yvonne is a long time cat owner and financial writer. Read her take on whether you should buy pet insurance or not. Yvonne is a rookie writer for Because Your Money Matters.
You have insurance on your car because car insurance coverage is required by law. You have insurance for your house because home insurance coverage is required by the mortgage company. You have health insurance for yourself and your family as health care is expensive. Should you purchase pet insurance for your pet? Consider the following:
Cost
I have owned many cats over the years, and was highly interested in pet insurance when it first came out. To my astonishment at that time the annual cost of the insurance was more than I paid in year to the vet out of pocket! On average, I have spent $100 per cat per year and the basic premium for the insurance was $20/month or $240 annually! Um, no, I don’t think so.
Back then, there was only one company that offered pet insurance. Now there are thousands. As with any insurance, you must assess your needs and compare them to the premiums and deductibles of the policy. Consumer Reports found that it may cost a pet owner more out of pocket with insurance than without! It should be noted that this study was primarily in reference to costs associated with routine care.
Out-of-pocket costs that are now at least partially covered by pet insurance include emergencies, surgeries, diagnostics and treatment. A urinary tract obstruction is a life threatening condition that is quite common in male cats, and must be treated immediately. The bill for this and many other life saving measures can be hundreds, sometimes thousands of dollars. Pet insurance, even at the $50/month level, could be money well spent.
Risk
Do you live in a high traffic area? Is your animal at risk for being hit? Are there other factors that put your pet at risk? Emergency and surgery vet costs can be astronomical. Many veterinarians have the same diagnostic tools for animals as doctors do for people. They also can perform many of the same procedures, such dialysis and chemotherapy. Therefore, animal health care costs are inflating. Pet insurance can help with that.
I had one cat named Spider who insisted upon going outside and picking fights. I nicknamed him my $400 cat as each time he was brought to the vet that is approximately what it would cost for the emergency visit, anesthesia, stitches, x-rays, and antibiotics. If pet insurance were available at that time, I would have purchased it for him.
Conditions
If your pet has been diagnosed with a disease or condition that will require multiple treatments, or is a breed that is predisposed for such conditions, talk to your vet about pet insurance. Some companies cover pre-existing conditions while others do not.
My mom had a beloved golden retriever who developed tumors all over its body, starting at the tail. This animal was brought in for many operations, including brain surgery, to remove the tumors. Many other treatments, such as radiation, were also necessary. Had it not been for pet insurance, mom would not have been able to afford the care this dog needed.
Emotions
We all get attached to our pets. At what point does the financial expenditure exceed the value of your pet’s life? When the vet assures you that a costly treatment will be successful and the only other option is to put the animal to sleep to relieve its suffering, which will you choose? It’s not something we like to think about. Would purchasing pet insurance give you peace of mind should this type of situation occur?
Is it worth it?
In 2009, approximate 27% of the cost of pet ownership was vet bills (MSN Money Central). An Internet search of pet insurance will bring up literally millions of results. Sorting through all of this information can be mind boggling. Is it better to buy pet insurance or just save up for veterinarian bills (and maybe donate some of that extra money you might save to the Humane Society or sign up for an ASPCA credit card)
You can start by checking with your state insurance regulation agency. Legitimate pet insurers must be registered, and the state office can provide you with a list of licensed providers in your area.
Determine what your routine pet care costs are. Ask your veterinarian for a fee schedule. How much is an office visit, a physical exam, and required vaccines such as rabies? What are the usual screening tests, such as fecal analysis, and what is the charge?
Once you have a reasonably good idea of what your pet care costs will be, compare them to what the various insurance companies offer for routine care. Is there a deductible required for office visits, common screening tests or preventative medication such as heart worm pills? Are flea and parasite treatments covered?
Discuss options with your vet. If your German Shepherd puppy shows indications of developing hip dysplasia, insurance may be recommended. Find out what the treatments are for known issues common to the breed of your pet and how expensive they are. Are these treatments covered by insurance? Will you have the money in your savings account available should the worst happen?
What would the claim process be in case of emergency? Are you required to pay out-of-pocket and be reimbursed by the insurance company? Can your veterinarian receive payment directly?
Ask questions and get answers, preferably in writing, before purchasing pet insurance. Some conditions respond well to a change to a prescription diet. Is this special food covered? What if there is a known condition? Will the insurance cover it? Be sure to fully understand the policy and customize as much as possible to get the most for your money. Understand the claims process to avoid frustration when you need to use it. Pet insurance can make your pet’s health a priority by relieving the financial concern.
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