Most of us would never consider going without medical insurance for ourselves or our families—the risks are just too high. However, when it comes to our pets, the concept of pet insurance is still new, and it can be hard to understand why it might be a financially viable option. That said, the benefits of pet insurance far outweigh any arguments or costs associated with it for pet owners.
North America is slow to embrace the concept of pet insurance. It’s estimated that less than 5% of pets in North America are insured, while 20% of pets in Britain and Europe are fully covered in the event of illness or an emergency. So why are North Americans behind in adopting pet insurance? Likely because veterinary care costs here are lower than in Europe or the UK. However, as most pet owners would agree, the prices we pay for quality veterinary care are high enough to warrant some form of protection.
Pet insurance premiums range from $10 a month for emergency care only to over $100 a month for comprehensive coverage, which includes emergency care, routine care, vaccines, dental care, and flea and heartworm treatments. The cost of coverage depends on factors such as the level of protection you want, your deductible, where you live, and the breed of dog you have.
Many people feel they can save the same amount of money each month as the cost of insurance. But here’s the problem: at the end of your pet’s life, the money stays in your bank account—not with the insurance company. For instance, you might set aside $30 a month for emergency medical bills and refuse to touch it. That’s a good plan—until your pet becomes ill three months after you start saving, and the vet’s bill is $1,500. Your $90 in savings is a start, but what about the remaining $1,410?
Does $1,500 sound steep for a vet bill? You haven’t been to an emergency hospital yet! Typical figures include:
- $4,890 for a dog hit by a car
- $4,280 for removal of a foreign object swallowed by your dog or cat
- $3,577 for cancer treatments for a young Doberman
- $2,768 for a dog with chronic bladder infections
- $2,309 for a cat with a fractured leg
- $1,900 for pneumonia treatment in a cat
- $1,748 for treatment of a diabetic cat
After receiving these bills, many pet owners often lament not enrolling their pets in medical insurance.
One of the advantages of pet insurance is that it travels with your pet. While you may have a wonderful relationship with your local vet, in an emergency, they might be willing to extend credit and allow you to make monthly payments instead of paying a hefty bill all at once. Try doing that with a vet you’ve never met before! Pet insurance covers your pet wherever they go, so you can have peace of mind whether you’re on a holiday, a business trip, or at your favorite vacation destination.
Many higher-tier plans also offer perks, such as covering the cost of boarding or home care if you are hospitalized or need to travel due to a family emergency. Additionally, some plans help with the cost of finding your pet if they get lost or stolen. In the event of an accident or illness, insurance may even reimburse you for the cost of your pet as well as any euthanasia and cremation expenses. Full coverage really does mean coverage for the entire life of your pet. These are things we never want to think about, but they can be invaluable if you ever need them.
When is pet insurance not worth enrolling your pet in? Unfortunately, if your pet already has many pre-existing health conditions, it may not be the best option. Just like human life insurance, no major pet insurance company covers pre-existing conditions. Depending on your pet’s overall health, it might still be worthwhile to enroll a healthy five-year-old pet, but it may not be financially viable for an unhealthy puppy.
There are also a few things to watch out for when enrolling your pet in a medical plan.
First, be mindful of the deductible. You can lower your monthly rates by choosing a higher deductible. However, many emergency situations that would typically be covered may not be worth submitting for reimbursement if the costs are near or just slightly above the deductible. Why pay for emergency insurance AND pay emergency vet bills that are under $500?
Also, make sure you understand what your plan actually covers. The cheapest emergency pet insurance in North America costs about $11 per month for a healthy dog. However, if you read the fine print, you’ll find that many conditions that would normally be covered by emergency insurance are excluded from these low-cost plans. Be sure you know what your insurance covers!
Like any other business, pet insurance companies are there to make money. They rely on the odds that your pet won’t need medical treatment throughout its life. For many pets, this may mean you’re paying for coverage you don’t end up using. The problem is, no one can predict which pet will stay healthy and which will face ongoing medical issues. It’s a gamble, but one worth taking for just $10 to $30 a month to ensure that your pet stays by your side, happy and healthy, for many years to come.
