Pet Insurance: Is It A Good Buy, Or Not?
Health insurance -- whether it's for our pets or for ourselves -- is supposed to be a good thing. Right?
After all, having pet insurance means our pet's medical bills will be covered in case of an emergency. Or are they? Unfortunately (as is the case with human health insurance), most insurance companies are in it to make money, not necessarily to help their clients.
The idea is to pay for health insurance in the event that your pet has a medical emergency and needs to be treated for a high-cost ailment such as cancer, for example.
Just to throw in a little statistics, there are about 6 million dogs diagnosed with cancer in the United States alone each year.
So, is pet insurance a good idea or not? That answer can be problematic for pet owners to find, and really depends on more factors than just whether or not you actually need pet insurance.
Consider A Savings Account
Here are some reasons to open a savings account for your pet's medical expenses instead of purchasing pet insurance:
1. Some pet insurance companies will refuse to cover certain conditions which are associated with certain breeds. Meaning, if you have a dog of a certain breed that is prone to a particular health condition because of its breed, your pet health insurance company may refuse to pay claims associated with that condition.
2. Many pet insurance companies will not cover expenses associated with pre-existing conditions. So, if your dog is diagnosed with cancer, knee injuries, or some other possibly terminal ailment before you purchase the pet insurance, chances are your pet's treatment will not be covered, and instead it will have to come out of your own pocket.
3. In many cases, pet insurance companies have high premiums with low payouts. So, this can mean that you are making high monthly payments to have this health insurance for your pet, but then when your pet becomes ill, less than 50% of the bill will be paid -- which could prompt you to ask, "Is the cost of buying pet insurance really worth it?"
4. Another thing to consider is the fact that if you have a healthy pet that does not need to be seen by a vet (other than for routine check-ups), it may not be worth the high monthly premiums to maintain pet insurance. The best way to determine this for sure is to understand what costs are associated with your pet's vet care ahead of time.
5. One thing that many pet owners may not realize is that even with pet insurance, you may still have to have the money up front for any expenses incurred while caring for your pet. The reason is, many vets don't want to deal with insurance companies and prefer to have payment up front instead of letting an insurance company being the go-between.
6. Some pet insurance companies refuse to cover pets over a certain age.
7. There is sometimes a waiting period with some pet insurance companies right after you start the policy for your pet. That means, if your pet becomes seriously ill and needs a lot of treatment during the waiting period, some pet insurance companies will not cover those expenses.
The fact is that most pet insurance companies are marketing to the rich who have the money to pay for their exhorbitant premiums rather than the pet owner who does not want to be forced to euthanize a beloved pet because he cannot pay for the treatment to save it.
...a Consumer Reports article from [way] back in 2003. This article detailed the basic economics of pet insurance and concluded that, unless you plan on being a “heavy user” of vet services, you’re better off without it. However, most of you reading this are heavy users; otherwise, you wouldn’t have any interest in this piece or any other vet-opinionated post of mine. So I’ll give it to you straight: You should probably invest in pet insurance. Because what CR suggested back then is even more true today. While, 4 years later, your GP vet may not charge substantially more, the hot new procedures on the veterinary horizon certainly do. -- Dolittler
Reasons To Buy Pet Insurance
While there can be some definite downsides to having and paying for pet insurance, there are also some very good reasons to purchase pet insurance:
1. Pet insurance does offset some of the high costs when your pet becomes seriously ill in many cases. While an insurance company that doesn't pay for more than 50% of a bill seems like it might be a ripoff, when you don't have much money to spend on vet bills to begin with, this can still be a
tremendous help.
2. Some pet insurance companies do offer discounts if you enroll multiple pets. This can help to offset some of the high costs of having pet health insurance.
3. There are more pet insurance companies now than there were even 5 years ago. This field is becoming very competitive which is going to help lower the costs somewhat for premiums for pet health insurance since pet insurance companies have to compete for your business. This is hopefully going to make it easier to obtain pet insurance in the near future.
4. Having pet insurance will give you some peace of mind that if your pet does become seriously ill, at least you will be able to have your pet treated instead of having to consider euthanizing him because you cannot afford his treatment.
Personally, in my mind it makes more sense to have a savings account that you pay into monthly for your pet, rather than to purchase pet insurance. There are just so many issues to deal with when it comes to having and choosing the right pet insurance. I figure that if I have a savings account and just keep adding money to it, then it's more likely that I will be able to get my pet the help it needs, and be able to afford any costly procedures than if I put money down what could be an endless well with few real benefits.
Buy Pet Insurance Online
If you're thinking about buying pet insurance for your dog, your best bet is to compare pet insurance companies based on the reviews and testimonials provided by actual users of these insurance companies before you buy:
Pets Health Care Plan -- see examples of recent claims paid out to policy holders
PetPlan Pet Insurance -- view testimonials and reviews
Veterinary Pet Insurance -- reviews here and here
Pet Assure -- a discount plan, rather than insurance
Pet Care Pet Insurance -- this is the pet insurance offered through Petco
ASPCA Pet Insurance -- some testimonials
Embrace Pet Insurance -- highly rated by 9 out of 10 customers; see the differences (.pdf)
Here is one veterinarian's take on pet insurance (...plus dozens of comments from readers).
Each individual company is different that it doesn't make sense to group them all together.
In response to the negatives about pet insurance:
1. Not all companies have breed restrictions.. I know Trupanion doesn't have any restrictions and they offer hip dysplasia coverage as an add-on.
2. No companies cover pre-existing conditions and this is why: If a company covered this, then every parent of a sick pet would sign up leading to hundreds of thousands of dollars claimed, thus bankrupting the company.
3. Trupanion always covers 90% of the vet bill, no matter how big it is. They don't have claim limits or yearly limits. 4. Just because your pet is healthy now, doesn't mean that it can't fall and break a leg, get hit by a car, eat something it shouldn't, etc. Healthy pets can get sick too.
5. The good thing about the reimbursement plan is that pet owners can choose any vet they want and not have to be limited to a list of approved veterinarians.
6. Trupanion enrolls pets up to age 14 and then covers them for life.
7. Like pre-existing conditions, waiting periods ensure that customers don't enroll just to claim lots of money and then drop the plan the next week.
Of course pet insurance is a personal choice, but it's definitely worth the peace of mind for those of us who couldn't afford a $2000 vet bill if something were to happen tomorrow.
It seems really difficult to find a good pet insurance, I think that the best thing to do is ask all the questions about it, don't take anything for granted.
AVOID ASCPCA PET INSURANCE
ASPCA Pet Insurance is a disgrace. Corporate theft of innocent people. I racked up over $1500 of tests because my vet noticed my dog had an enlarged spleen. They refused to reimburse because, they claim, it was a previous symptom. Since we only just discovered it and I have been with them for a year, how is that possible? then they said it was because "owner noticed he has always had a pale tongue"!
Avoid ASPCA PEt Insurance at all costs. Shame on these crooks.
VETERINARY PET INSURANCE IS A RIP-OFF. Trust Me.
Rip off!
Wanna know how this company profited $2.3 million in 2002 on the backs of sick animals? Read on...
I bought insurance for my dog with VPI for 8 consecutive years. When my dog got old and I really NEEDED the benefit of that insurance I'd invested in for those 8 years, they canceled my policy. Turns out this is legal -- the State of California Dept. of Insurance said VPI didn't have to give me a valid, quantifiable reason for canceling.
Consumer Reports did a study and concluded you are just as good putting the money into a savings account. Seeing as VPI took my money for 8 years and then canceled when my dog got old (and was apt to actually get benefits paid out), you can see why buying pet insurance could be a BIG waste of money.
According to the Orange County Register, VPI was under investigation by the SEC for financial 'improprieties". Do you want to trust your pet's health to an organization like this?
Avoid VPI and just put your money in a savings account.
p.s. The founder of VPI, Jack Stephens, is a trophy hunter. Ironic isn't it? He says he cares about animals but he kills animals for fun.