Is Pet Health Insurance Right for You?

Pet health insurance may be a cost savings for you amd your family, but not necessarily. photo: AdobeStock

Pet insurance: do I really need it? That’s the question many veterinary professionals hear almost daily.  

As a vet myself, I choose pet insurance so I can approve my pet’s care when they need it. I like knowing I can give them whatever treatments the doctor recommends. And because I’ve had insurance on my current pets since they were young, almost all conditions are covered. 

My first dog, Chloe, was my first credit card bill ever. Chloe had some bad luck as a puppy, with a urinary infection and tummy issues. But then she developed a condition called “cherry eye,” in which her nicitan (tear) gland was protruding from her eye. While this is not life-threatening, if a pet rubs their eye frequently, it can result in trauma to the eye, and Chloe was close to needing surgery. I was a student at the time, not making enough to cover her veterinary bills, and the cost of surgery was quoted at $1,000-2,000. I was even considering giving Chloe away when I was thankfully able to seek treatment at the SPCA. But it was a lesson learned.

My experience with Chloe is why the mission of SAGE Compassion for Animals is near and dear to my heart. This Bay Area nonprofit organization works to provide financial assistance to families with companion animals in medical crisis. But planning ahead with the right pet insurance can save you and your pets from ever finding yourselves in this situation.

What is pet insurance?

Pet insurance can be a lifesaver when your pet becomes ill or injured, and it typically covers many common emergencies, including costly emergency surgeries. Preventative medicine is generally not covered - including vaccines, spay/neuter, and flea/heartworm medications - though there are some plans that offer well-being coverage, usually at an increased cost.  Your primary care veterinarian may also offer well-being packages that may be more financially beneficial and easier to budget for.  It is important to note that pet insurance will not cover a condition that is pre-existing, meaning that signs of illness were present or a diagnosis was made before the start of insurance.

How does it work?

With pet insurance, you must typically pay for your pet’s services at the time of treatment and then submit your bill for reimbursement. There are a few companies that will pay ahead of time for certain pre-approved conditions, but be mindful to read your policy carefully. Some pet insurances will cover exam fees, and some do not. Some pay based on a percentage of the bill (always best), and some pay on a fee schedule. 

Many times, I have seen clients dissatisfied with their insurance policy because they did not realize what was covered and what was not. However, I have also seen veterinary bills continue to climb, and I have seen the relief clients feel when they can approve their pet’s treatment, knowing they are covered.

For example, if a knee surgery costs $4,000, after a $500 deductible plus a 10% copay, you would be paying about $900 for the surgery once you receive reimbursement. Compare this to the cost of insurance, which varies based on several factors but is likely between $50-70 per month for a dog. At $50 per month for 12 months, your cost is $600 per year, and you are also covered for any other illnesses or emergencies that arise. Given that the  lifetime spent for veterinary services in dogs is well over $10,000 (and could be more depending on where you live), pet insurance may be a worthwhile investment.  

Are there alternatives?

There are some alternatives to pet insurance, such as credit cards, a short-term loan, or even a pet savings account. But as  you can see from the above figures, even if you set aside $50 each month that is only $600 per year saved. The cost of an emergency visit can, unfortunately, reach over $1,000 rather quickly, and credit cards and short-term loans will come with unwanted fees. There are some providers such as CareCredit that offer no interest for a defined time. Some folks also turn to crowdfunding, which has certainly helped many people, but is not a source you can rely on.

 Pet insurance may not be right for everyone. In considering it, decide what you could afford if your pet became ill or injured. Perhaps setting aside a savings fund would be enough for your family. Look into quotes from several pet insurance companies, and determine what annual deductible and monthly payments would make sense, bearing in mind that veterinary bills can add up and that one in three pets visit an emergency veterinarian every year.

More information on pet insurance is available on the Resources page at SAGE Compassion for Animals, including tips from veterinary surgeon Dr. Lissa Richardson. Whatever you ultimately decide about pet insurance, your furry family members will thank you for planning ahead. 

If you’re considering pet insurance, you may sign up for a free virtual webinar, Pet Insurance: Do I Really Need it, taking place at 6 p.m., on October 28, hosted by SAGE Compassion for Animals. Visit the events page for more information and to register.