Gails Blog

I’m about to become the proud momma to two new Bichon Frise puppies. They were just born and will be ready to come home to momma in about eight weeks. Coincidentally, I just got a credit card statement with a stuffer for pet insurance. Hmmm. Signal from the Universe? So I got to thinking about the issue of pet insurance and whether or not it’s worth the money.

Pet insurance is becoming very popular because vet costs are rising and interventions are becoming much more expensive. According to the American Veterinary Medical Association, Americans spend more than $20 billion dollars a year on veterinary care.  In 2003, fewer than 1% of an estimated nine million Canadian pets were insured. ConsumerReports.org says that’s because pet insurance doesn’t offer good value for the money you have to put out.  And I quote:

The problem with pet insurance is all its fine-print pitfalls. Indeed, buying a policy may end up increasing a pet owner’s total expenditures on veterinary care by thousands of dollars, according to our analysis of five plans. That’s because on top of deductibles required by all the insurers, plus any co-pays, unreimbursed costs, and exclusions–all of which you pay out-of-pocket–you also pay premiums. Seemingly small $11 to $50 per-month premiums can add up to $2,000 to $6,000 or more over a pet’s lifetime.

See their take on it. (http://www.consumerreports.org/pets/0307vet2.html)

If you decide in favour of pet insurance, it appears you have to be careful; you don’t want to just pick any old plan. There are policy options you’ll want to ask about such as benefit limits, deductibles, and, most importantly, what’s covered. Ask about:

• enrollment period: from what age to what age. Some plans cover critters from 8 weeks old to death; other cut off coverage at 8 years or so (hey, isn’t this exactly when you’re most likely to need coverage?)
• wait period: Plans often have a wait period of up to 21 days from the time you fill out the application until the plan goes into effect. Some plans also require a vet checkup before the plan is activated. 

• benefit limit: the maximum the plan will pay out a year or over the life of the plan
• deductible: how much you must pay from your own pocket for each claim; some companies let you choose a deductible and reduce your premiums (by a smidgeon) based on the deductible you’ve chosen; with other plans, the deductible increases as your pet ages. Keep in mind that low premiums with too-high deductibles just aren’t worth it.
• co-pays: the plan pays up to 80% (or whatever your plan pays) and you pay the difference
• discounts for multiple pets
• coverage for pre-existing conditions: some plans will cover if the condition has been completely cured; other plans consider genetic conditions to be pre-existing. For example, Doberman Pinschers tend to suffer from Wobbler’s Disease and cardiomiopathy so those might not be covered for your Dobi.
• coverage for cancer
• coverage for sterilization
• coverage for preventative care: which would take care of your vet visits (most plans require at least an annual vet visit to keep the plan in effect)
• monthly cost: costs vary tremendously with the type of plan you sign up for, running anywhere from $10 to $100 a month. Basic plans cover the costs of accidents (like being hit by a car) and some common illnesses like eye and ear infections. Top of the line coverage may cover routine preventive care (such as vaccinations and neuters/spays) and even alternative therapies like acupuncture and hydrotherapy. Some even cover the costs of cremation or burial of a pet, and include extra coverage upon accidental death. (You should also check to see if the premium will change after you’ve taken out the plan, and by how much.)

I got quotes for insuring one of my puppies from a variety of sources and it looks like it might cost about $60 a month for a good level of coverage. And since many of the plans I looked at have a cut-off when the dog turns 8, after spending almost $6,000 in premiums, I’d be back on my own. Also my last Bichon Frise, Sabrina Sabu-Yabu, never had a day of illness and lived 14 great years, so the breed may be hardy enough to not require pet insurance.

So I’m looking for some feedback. What’s your experience been with pet insurance? Worth it or not? And were there any surprises when you tried to make a claim or after you had had the plan for a while?