I am a skeptic when it comes to insurance. Too often many of these insurers find some loophole to weasel out from paying on the policy. Having been burned by a vehicle warrantor in the distant past I now consider myself immune. And if the salesperson persists, I launch into my failed auto warranty story. That generally discourages further attempts. But then the idea of pet insurance started taking root.
That is because our Yorkie, Camille, makes lamentably poor dining choices. She tends to take the approach of ‘eat it now and let the stomach decide later’. I have determined that she has an overactive starvation complex. This means that decisions regarding whether something is edible (and safe) tend to get pushed aside in favor of a full stomach. Insects, birds, mice, and other items too horrible to mention have all been consumed.
Her last dining gaffe didn’t catch my attention until our cat proudly offered up a dead mouse on our living room floor and Camille scrambled to grab it. Seeing me launch myself from the couch she immediately attempted to swallow it whole. The only thing stopping her wasn’t my yelling, but the fact that the creature would not fit down her throat. That is the only time I recall her voluntarily giving up a perfectly good (to her) meal.
Thankfully, though, her forgiving stomach and otherwise good health have saved her from some truly horrible disasters. I have been cruising along these past twelve years with relatively few veterinary interventions.
But she turned 12 this year and, with an average life span of 16 years, it has got me wondering if purchasing insurance for our tiny terrier is right for us. Her age and questionable choices are destined to catch up with her before too long and want to keep her as healthy and happy as possible well into her senior years.
A Little History on Pet Insurance
So, with a big dose of skepticism, I have begun researching all the options available and what each would cost. The first surprising fact I ran across was how few owners purchase insurance for their pets. According to the North American Pet Health Insurance Association (NAPHIA) that, while 68% of U.S. households have pets, only 1% carry pet insurance.
Emergency Vets USA provides a chart that shows emergency room visits can cost from $80 for general bloodwork to $5000 for emergency surgery.
Digging into the Details of Pet Insurance
According to the articles I have read, the monthly premium can range from around $20 to $50 a month. Canine insurance is generally more expensive than cats by another 60%, and large dogs are highest overall. Rates for purebreds and older animals will also generally have higher premiums for both species.
Plans can ensure costs due to just accidents, or accidents and illness, with 81% being accident and illness plans. Accident-only policies can come in at just one-third of the cost of those that cover both accident and illness, something to keep in mind when determining the best option for your pet.
You can expect that an average policy will have a deductible, the amount you must pay before coverage begins, of between $100 to $2,500. The insurer will then reimburse you from 70% to 90% of the cost.
Some insurers cap the annual maximum payout around $3,000 to $10,000, although some have no annual ceiling. Also, some policies have a maximum payout per incident, so be sure to read the fine print before signing on the dotted line. Be aware, too, that almost all policies exclude pre-existing conditions and may exclude breed-specific conditions and have age restrictions, as well.
I would also like to make it clear that pet insurance is primarily operated on a reimbursement basis. That means you must pay all costs up-front and then submit a claim to the insurance provider.
So, Does the Cost Outweigh the Benefit?
You should examine that question from two different angles, monetary and emotional, and I’ll take a look at both.
- From a Monetary Standpoint
Keep in mind that insurance is, by definition, difficult to monetize. According to one online source insurance is “a thing [insurance company] providing protection against a possible eventuality” (OxfordLanguages). Very vague and open-ended to be sure.
In a recent article by Maxime Croll, “Average Cost of Pet Insurance: 2021 Facts and Figures“, she reported that treating the most common dog conditions could cost an average of $252.75 per visit, with cat conditions averaging $266.79. She found that “In most cases, paying for treatment out of pocket for the most common dog and cat conditions is less expensive than the annual cost of insurance.”
For instance, if your policy ran $30 per month or $360 per year, one illness or accident at a cost of $250 would not make insurance worth the expense. Keep in mind that this form of insurance does not cover well visits or immunizations. But, if your beloved pet is a risk-taker or makes unhealthy decisions (like our Yorkie), then you can be reasonably certain you will be making that trip to the vet several times a year.
But where pet insurance really pays off is for those uncommon and catastrophic possibilities. These events can easily top $5,000 and higher per incident. On those occasions, insurers can wind up paying out far above the cost of the insurance in a given year. That would definitely make it a worthwhile investment for you.
You don’t want that $5,000 vet bill to seriously drain your cash reserves or cause you to fall behind on your payments. Or, even worse, force you to consider “economic euthanasia” (horrors!). If so, then it might be easier for your budget (and your nerves) to accommodate a $30-$50 payment every month. Much more palatable than forking over a big chunk of money if disaster strikes.
- From an Emotional Standpoint
Another factor to consider is where you fall on the emotional scale. Each of us has differing attitudes regarding how much we are willing to expend for our companions. And by “expend”, I’m speaking in terms of both money and time and effort. These beliefs are shaped by our age, circumstances, and a variety of other influences. (That’s a caution to withhold judgment just because others may not ascribe to your beliefs. 🙂 )
For instance, I grew up during the 1960s and it was unheard of for anyone in our rural town to shell out hundreds or thousands of dollars in an effort to save an injured or sick animal whose outcome was uncertain at best. Parents of my generation experienced the Great Depression firsthand and hard choices were an everyday occurrence.
Veterinary medicine has made huge advancements in the past decades though. And the range of procedures (canine orthodontia anyone?) and the success rate have both expanded enormously as well. That means your pet has a fair to good shot at a complete recovery. Or, if nothing else, it could extend the length and quality of their remaining years.
Added to these medical advances, we now share closer ties with our fur babies than prior generations. Oftentimes our pets serve as our emotional support and the main objects of our affection. Because that bond becomes so strong, many of us choose to pay for the operation or therapy, essentially whatever it takes to keep them with us for a bit longer.
If that is where you fall on the emotional spectrum then pet insurance might be a good choice, simply to provide some much-needed peace of mind.
One morning we woke to find Missy, our mouse-catching cat, had obviously been scratched in one eye. No surprise there, since she was well known to torment our older cat, Zoey. I chose a wait-and-see attitude in hopes it would heal itself. No luck though, and it eventually required a vet visit to the tune of $140 (and would have been higher had I opted into all their recommended tests, etc.). With insurance, I would not have hesitated.
So, if you are like me in that you might hesitate and then must deal with the guilt, that premium payment every month might be right for you. Or, if you have a thrifty spouse who doesn’t see the need to rush the pooch to the animal ER with every scratch or tummy upset, it might also save an unpleasant argument in the waiting room.
In Conclusion
The good news is that the quality and range of coverage have vastly improved. Wiggling out of a payout due to some obscure exclusion or loophole is now uncommon. And many companies now allow you to customize your policy in terms of deductible levels and copay options.
For this reason, you would be well advised to pay close attention to what tests and procedures are included or excluded. For instance, if your dog’s breed makes it prone to hip dysplasia, then read the terms carefully to determine if treating that condition is covered in the policy. Don’t be afraid to ask questions either. You certainly don’t want to learn that $1,000 worth of teeth extraction is needed while your dog is under anesthesia at the vet’s to wonder if that is covered.
If you want to do some research Croll’s article is a good place to start as it contains a lot of facts and figures particular to your pet’s situation.
If you’ve already decided to purchase insurance Investopedia gives an-depth review of the top insurers currently offering plans.
And if you’re a statistics nerd, shortlister has a whole list (hence the name, lol) of interesting facts about pet and pet insurance.
A Little Note on Wellness Plans
Another option for those whose pet is generally healthy (and innately cautious) is to purchase a wellness plan.
Wellness plans cover routine care that allows you to keep your pet in their best condition, as well as catching more serious problems before they become a worse and more expensive situation. These plans cover such expenses as wellness exams, vaccinations, parasite prevention, and dental cleaning and average around $50 a month, depending on the factors mentioned above.
What I Decided
As for me, I’m still holding off on the insurance. Now that Camille is older, she has become wiser, thank goodness. Meaning she’s not as inclined to bolt out an open door and into the street or practice eat-first-deal-with-it-later behavior.
However, just this past year I did sign her up for a wellness plan through one of the big-box pet stores. So far, it has been a plus. It’s less painless for me being bled one manageable monthly payment at a time and the well-check visits aren’t something I have to debate.
Now that I have a small slush fund saved for emergencies, I’d rather make sure she makes it to the vet regularly and deal with the larger expenses as they arise. Now you have a decision to make as how best to manage your pet’s well-being, as well as your sanity and pocketbook.
