Pet Insurance: It Makes a Difference
To Insure or Not Insure: That is the Question #
Veterinarians are often asked by pet owners whether they should get pet insurance. Veterinary care is expensive, and studies have shown that the cost of owning a pet over their lifespan can add up to tens of thousands of dollars. Some people are fortunate enough to have enough funds in savings to cover a large veterinary bill, but most are not. The most heart-wrenching situations vets encounter in practice are clients’ decisions impacted by financial constraints.
Insurance is one of those things you hope you never need. Without it, you may wish you had it when the unexpected happens. With it, you may feel frustrated that you’re paying for something you never use. But that’s actually the point - and a good thing.
Some Key Considerations #
Pet insurance companies generally base their premiums on the applicant’s ZIP Code and on the age of the pet to be insured. Most premiums do not lock your pet in for their lifetime, and they are assessed year to year. So as an animal ages, premiums will go up. Be sure to look at any caps on care. If you can find an insurance with a life-time policy, that is ideal.
Another thing to look at is the quality of the insurance company. Some companies are good, while others are quite annoying. Some fail to cover care until they have a final diagnosis. If the diagnosis is not concrete, as are many conditions, the insurance company may not cover the cost. Be aware that most insurance companies will not cover an animal with a pre-existing condition or health issues specific to certain breeds. Also, some insurance companies will only cover certain medical procedures. Be sure to look into whether your insurance covers prophylactic care, such as routine visits. If you can find an insurance plan that covers dental procedures, that is a good thing, as many animals require annual comprehensive dental care under general anesthesia.
Definitely read the fine print!
It is important to understand that payment for veterinary services is due at the time of the visit. Pet insurance typically works through a reimbursement process: after you pay for services, you submit the required documentation to your insurance provider, and eligible expenses are reimbursed according to your policy. Therefore, even with pet insurance, it is important to have sufficient funds available to cover the upfront cost of care.
Legitimate Concerns #
Another growing concern with pet insurance is the possibility of your policy being discontinued if an insurer exits the market. Companies that also offer human health, homeowners, or other types of insurance may choose to stop doing business in California altogether. Unfortunately, many of our clients experienced this in the past year.
In general, it’s often more reliable to choose a pet insurance provider that specializes exclusively in pet coverage. Companies focused solely on pet insurance are less likely to be affected by broader market decisions that can lead multi-line insurers to withdraw from an entire state with little notice.
There are many new pet insurance companies entering the market. While some may offer excellent coverage and service, choosing a provider with a long-standing track record can offer greater confidence in its financial stability, customer service, and ability to honor claims over time.
The Dollars Add Up #
As you wrap your head around whether it makes sense to pay deductibles or to pay out-of-pocket, consider the cost of emergency situations. An overnight trip to the emergency hospital for vomiting could easily cost a few thousand dollars. A specialty surgery will likely cost $6000 or more. Generally speaking, when doing the math, it makes sense to have insurance.
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