Picking pet insurance

Pet owners in North America spend more than $10 billion annually on health care for their pets.

The cost of veterinary care has been increasing in the last few decades, primarily due to the rapid advancements in medical technologies used by veterinarians. Life-saving technologies that were once used for humans are now available for our four-legged family members, whereas previously many illnesses and conditions were untreatable in pets.

The pet health insurance industry, too, has exploded during the last two decades with a multitude of policies and carriers. It can be daunting and confusing to wade through the numerous packages and insurance jargon, let alone to determine if you should even get pet health insurance for Fido or Fluffy.

The greatest advantage to pet health insurance, of course, is should your pet become sick or need an expensive surgery or treatment, your coverage should kick in. You will have the peace of mind to focus on taking the best care of your pet rather than being distracted by veterinary bills. If the condition is life-threatening, having pet health insurance will also spare you the heartache of ever having to decide between saving your beloved pet’s life or incurring a large veterinary bill.

On the other hand, you could get pet health insurance and pay your insurance premiums, but your pet may never get gravely ill or be hurt badly.

So in these tough financial times, what should one do? What’s the best choice? What should you be aware of?

Basics
First, consider the four types of pet insurance plans available:

—Traditional plans. Typically cover illnesses, accidents and sometimes even preventive care, such as vaccinations and wellness exams. You pay a monthly premium to the insurance carrier. When your pet receives treatment covered under the plan, the insurance company will pay part or all of the bill. The more comprehensive the plan, the more expensive it will be. 
—Customizable plans. Similar to traditional plans, but you are allowed to choose the levels of coverage and can customize what is actually covered.
—Accident-only plans. Only accidents are covered; does not cover illness or wellness exams.
—Discount plan. You pay a fee to access a network of veterinarians. Your bill will be discounted by a certain percentage as long as you use an “in-network” veterinarian.

General concepts
In a nutshell, there are choices, and not every pet requires an expensive traditional plan. Here are some things to keep in mind when shopping around for pet health insurance:

In general, it will be less expensive if you get a plan that will kick in to cover only very large claims or will pay smaller portions of your bills. In contrast, it will be more expensive if you get a plan that will pay most of the bill when your pet receives treatment.

Keep in mind, traditional plans will not cover “pre-existing” conditions. If your pet already has an illness or condition, you might want to get a discount plan.

If your dog is of a breed that’s prone to problems, such as “hip dysplasia” which is common in large dogs with sloping backs (such as German Shepherds and boxers), or respiratory problems, which are common in small dog breeds, talk to your veterinarian about getting health insurance coverage before your pet develops or is diagnosed with the condition. Otherwise, it will be more difficult and expensive to get insurance once the condition has been diagnosed. 

Certain pets may not qualify for insurance due to age and breed or there might be a “breed surcharge.”

On the other hand, if you feel your pet is in no particular risk, you could wait until your pet is 5 or 6 years old before getting health insurance. Like people, pets tend to accumulate medical bills as they grow older.

An accident-only plan is a good buy if your pet is very active, if you have a sporting dog prone to injuries or if you feel that your pet is particularly accident-prone.

Be sure to understand how vet emergency services are covered.

Special discounts might apply (for e.g. if you’re enrolling multiple pets, or if your pet is microchipped).

The cheaper policies tend to pay only for accidents and illnesses, but that might be all the coverage your pet needs. The cheaper policies also have higher deductibles, but are nonetheless effective in keeping your out-of-pocket costs down in case of a catastrophic illness or accident.

Shopping around
If you are purchasing pet health insurance, do shop around, obtain quotes, and make sure you’re doing an even one-to-one comparison among the various policies and carriers. Also, before you buy a plan, make sure you fully understand what is and isn’t covered; insurance plans are rife with “exclusions” and special terms. Organic-pet-digest.com has a helpful resource of what these exclusions and terms mean, and does a good job of breaking down the various plans and what they offer objectively.