Is pet insurance worth it?

Believe it or not, but pet insurance is the most sought after type of insurance, more so than homeowners or auto insurance. Still, the whole idea is fairly new to American pet owners. Less than 1 percent of the 163 million cats and dogs in the United States are covered by a health insurance policy. In the UK and other European countries, 20-50 per cent of the pet population is covered.

Consumer Reports isn’t always right

Many pet owners wonder if it’s “worth it” to invest in pet insurance. As an alternative, some people advise simply opening a separate savings account for your pet’s medical expenses. That way, if you don’t end up needing the money for expensive vet bills, you could spend it on something else, like a vacation to Hawaii.

For example, a 2003 Consumer Reports article says, “The most important thing to know about pet insurance is that it’s a form of forced savings that almost never covers the entire bill. You can do the same thing for the same monthly premium.” to your savings account.

I don’t agree that you can achieve “the same thing”.

Yes, the purpose of any insurance is to cover unknown future risks. But you’ll never know which is the best option until after the fact.

While saving money is always a good idea, how long will it take you to save $3,000, $5,000, $7,000? What if you have a medical emergency and you still don’t have enough money saved? I can guarantee that your pet will not wait to get sick or injured!

$5,000-$7,000 is NOT an exaggeration of the kind of expenses you could face if your pet needs to visit a veterinary specialist or develops a chronic medical condition like diabetes, seizures, or thyroid disease.

just dial the numbers

If you saved $50 a month, it would take you a little less than 10 years to save $7,000 depending on the interest rate on your savings account. Depending on the pet insurance policy you choose, from the first day your policy goes into effect and for the same $50 a month, you could receive $7,000-$14,000 per occurrence or even $100,000 for multiple occurrences for life.

Even if by some miracle you have an extra $7,000 to immediately fund your pet’s savings account, your savings will drop to almost zero once your pet experiences a serious medical incident. And that?

Avoid benefit programs

There are many factors to consider when evaluating the different types of pet insurance policies available. But one of the most important is whether or not the company uses a benefits program to reimburse claims. What this means is that regardless of the total cost of treatment, the policy will only pay up to a fixed amount (not a percentage) per condition.

It’s much better to look for a policy that covers a certain percentage of the claim (usually 80% or more) based on the actual cost of the procedure and where you live. This takes into account the higher fees you’re more likely to find at an emergency or specialty clinic, and you never have to worry about inflation.

Many pet parents have discovered (to their disappointment) that the benefit programs currently offered by pet insurance companies have not been adjusted to account for recent inflation associated with veterinary expenses.

The fact is that your pet will likely require expensive medical care at some point in his life. What would you do if your pet needed sudden medical attention, like a trip to the ER clinic, or was diagnosed with a chronic condition like diabetes?

Both could easily cost $2500 or more. Would this cost cause you financial hardship? If she answered yes, then pet insurance is probably right for you.

Some people believe that pet insurance is just another way for insurance companies to get rich. However, any type of insurance is something you have, but hopefully you never need to use it. You never know when you will need it. I have seen pet insurance save the lives of pets that would have otherwise been euthanized due to expensive medical bills.

You can’t put a price on that.

© Amanda K. Jones, LVT