In a time when healthcare coverage isn’t even available for all humans, some people might think it’s frivolous to buy insurances for their pets. It can be expensive, it doesn’t cover everything and you might not ever use it. But dog health insurance is still a good idea. You may never need it, but if you do, you’ll really, really need it.
Rising Costs for Veterinary Treatment
In a 2006, the American Veterinary Medical Association (AVMA) reported that Americans paid over $24 billion dollars in pet healthcare costs. Pet insurance costs about $30 per month, a total of $360 a year. That’s not very large strain on your budget, especially when you consider what an emergency or serious illness could cost you. For example look at some of the costs of treatment for common problems:
- Intervertebral disk disease – $2,844
- Foreign body ingestion (small intestine) – $1,629
- Lung cancer – $2,032
- Urinary tract reconstruction – $1,399
- Gastric torsion (bloat) – $1,955
- Foreign body ingestion (stomach) – $1,391
- Foreign body ingestion (small intestine) – $1,629
- Rectal cancer – $1,011
- Bladder stones – $989
- Foreign body ingestion – $1,398
- Intestinal cancer – $942
- Cataracts – $1,244
- Bone cancer – $1,059
- Pin in broken limb – $1,000
- Acute renal failure – $565
- Brain cancer – $916
- Mast cell tumors – $497
Pet insurance may seem like an unnecessary expense, but if you want to ensure you have the funds to take care of your pet if he develops a serious medication condition or needs emergency treatment, dog health insurance might a great solution.
The real question to ask yourself is how much money are you willing to spend on your pet’s health. If you have a very limited budget, you might want to invest in a routine care policy. If you have a breed susceptible to certain conditions or injuries, or if your pet has an unusually active lifestyle, you may want more comprehensive coverage. Only you can decide what’s best for your family (and wallet).
How Dog Health Insurance Works
Pet health insurance works similarly to health insurance for humans. Your pet is offered a policy based on a number of factors, including his age, health, breed and any pre-existing conditions. You’ll pay a monthly premium, as well as any charges the insurance doesn’t cover. When you need to file a claim, you’ll do it directly with the insurer; in many cases you’ll be required to submit receipts for reimbursement rather than having the funds paid directly to your veterinary healthcare provider. The amount reimbursed will vary according to the incident and your policy. The claims process can be lengthy, and you may not receive a renewal if you exceed your maximum benefits or incidences. Sound familiar? Insurance is a pain no matter what the species!
Types of Pet Insurance
The oldest pet insurer in the country—the first dog they insured was Lassie—Veterinary Pet Insurance (VPI) is the largest insurer, currently holding 71% of the market. Their policies offer coverage for vet bills, lab fees, surgeries, prescription drugs and office visits. VPI’s Superior Plan provides for accidents, diseases, illnesses, x-rays, surgeries, cancer, prescriptions and hospitalizations. The maximum annual benefit is $14,000. VPI also offers more expensive plans that cover everything from vaccinations to dental procedures.
Other well-known pet insurance companies are Petcare, Pet Assure and Embrace Pet Insurance, which covers many pre-existing and breed-related problems.
Coverage & Exclusions
Pet insurance coverage varies widely. Most companies offer basic plans that cover routine visits, annual exams, lab fees, surgery and prescription drugs. Other policies cover emergencies, accidents, serious illnesses, radiation treatments, chemotherapy and other expensive treatments for specific conditions. Benefits can vary from partial to total coverage of each condition; some plans will even cover dental costs.
Pet insurance doesn’t usually cover hereditary conditions, such as hip dysplasia in retrievers and German shepherds, or intervertebral disc disease (IVDD) in dachshunds. If your dog has a pre-existing condition, you might not be able to find coverage at all; if you do, you will wind up paying a much larger annual premium. Also, if your pet is older, you may have a difficult time finding an affordable policy. Some insurers don’t even cover pets older than nine years old.
Premiums, Deductibles & Surcharges
Just as with human healthcare coverage, dog health insurance doesn’t pay all the bills. You’ll need to pay premiums, deductibles and co-payments, as outlined by your insurer. Some companies have caps on annual payout or instances of coverage. Comprehensive coverage can exclude certain expenses, too; check with your insurer.
Start a Savings Account Instead
The best option is to take out a policy that provides for routine care coverage, and then set aside funds for emergencies. You’ll keep your annual and monthly premiums low, and you’ll have the funds to pay for an emergency or expensive illness. While you’re waiting to use those funds, they can earn interest. A good amount to shoot for in your pet emergency savings account is $4,000, which should be enough to pay for almost any emergency.
Find the Best Pet Health Insurer
If you opt for pet health insurance, shop around for the best policy and compare coverage and quotes. Make sure you understand the differences between deductibles, co-payments and caps. Find out if the policy pays out by incident, annual expense or over the animal’s lifetime. Find out if the insurer offers multiple-pet discounts. You might even be able to convince your employer to offer pet insurance as a company benefit!
Make sure you select a reputable pet health insurer. As with human insurance companies, pet insurers should be registered with your state regulators, which means they must comply with certain rules of business. You could even look into buying from a broker, who might be able to get you a few more discounts; check with your employer to see if this is something he or she might consider adding to your employee benefits package.
Before you sign the policy, make sure you understand what is and isn’t covered. Murphy’s Law dictates that your pet will experience the very problem your policy excludes.
