Pet insurance is not a new phenomenon. In England, almost 19 percent of pets are somehow insured against illnesses and accidents; in Sweden, the percent rises to 49. In the US, pet insurance companies have been around since 1982, but only in the past five has the industry boomed. Still, at the time of writing, only one percent of American pets have insurance.
How Does It Work?
You are initially responsible for paying the veterinarian in full. Later on, you submit to the company a copy of the bill plus a set of insurance forms signed by your veterinarian. Reimbursements take from 15 to 30 days.
There is a deductible per incident (not per office visit).
Depending on the illness, you can save up to 75 percent of the original cost of the treatment.
What to Consider
Ask a lot of questions. Many companies do not cover cancer in their basic policies. Some may offer an additional plan for it, while some may not cover it at all. Make sure dental and eye care are included, especially if your pet is older. Ask about prescriptions. Routine care (vaccines, check-ups, and flea control) can be added to most policies for an extra charge, but it’s usually not worth the expense.
Read the fine print. There will be a lot of it. It’s especially important to know how long after the first payment does the coverage become effective.
Costs
Plans can run anywhere from $100 to $1,000 a year, depending on the extent of coverage, and the type and age of the animal. Deductibles are $40 to $110 per ailment.
Pros
Even if your pet only has one major medical incident through his or her life, it can justify years of monthly premiums.
Since you can choose your own veterinarian at significant savings, you are more likely to take your animal to the top clinics when treatment is required.
Cons
They do not cover pre-existing conditions – While most companies will not cover any type of preexisting conditions, some may offer some type of protection for illnesses that are controlled and do not present an immediate risk. In that case, companies will usually require a long waiting period to confirm the animal is, in fact, stable, and require veterinarian monitoring to verify a positive prognosis. Terminal diseases previously diagnosed are not covered by any pet insurance company in the US.
They do not cover certain health problems common to specific breeds - Hip dysplasia, a common occurrence in aging German shepherds, is not covered. Some companies add a surcharge for large-breed dogs.
Premiums increase with age - Most pets less than six years old can be automatically accepted. Older pets may require a throughout veterinarian examination. Some companies do not accept senior (over seven) pets, and premiums tend to increase considerably as pets get older. Other companies only offer accident coverage for older pets.
There are set dollars limits for specific illness – Although most companies will tell you you are covered for up to $14,000 a year (sometimes more), many of them have set limits for every incident. For example, if the company only allows $500 for fractures and your cat needs a surgery that costs $1,000, you will have to cover the difference.
Verdict
Both animal protection agencies and veterinarians recommend that pet owners consider health insurance.