Why Pet Insurance ?

While pet insurance has been available for over 20 years in North America it has only really started to take off in the last decade. What has led to the change in pet owner perception about the product?

The major change is due to the strengthening of the bond between humans and our animal companions. The post-war mentality of leaving a dog outside in a kennel with a bowl of kitchen scraps and some water is a thing of the past, pets in the 21st century are a part of our family and we want to care for them as such.

In the past 10 years the advances in veterinary care have been significant. Veterinarians are now able to diagnose and successfully treat illnesses that would historically have been untreatable. MRIs, CAT scans, chemotherapy and ultrasounds are now part of the everyday technology available to veterinarians. Congenital and hereditary conditions in the companion animal world are on the increase and are now treatable by veterinarians. However, all of this comes with a price tag attached that is not always within reach of the average pet owner. Pet insurance allows pet owners to pay an affordable monthly premium to cover the cost of providing unexpected medical care – which will be hundreds, if not thousands, of dollars.

Financially astute pet owners view pet insurance as a key part of their family’s risk management strategy. Although your pet may be healthy today, statistics show that the chances are extremely high that there will be an unexpected accident or illness in its future and while the monthly pet insurance premium is affordable, the cost of major surgery is not. According to a recent survey by the American Veterinary Medical Association pet owners say that they would be willing to pay an average of $1,042 to keep their dog from dying and $657 to keep their cat alive. Given that the average cost of treating a pet’s fever is over $1,200, insuring your pet today could well save its life in tomorrow.

However, be warned, pet insurance companies are different and provide different coverage – you need to check the fine print. Some things to look out for:

1. You must make sure that you choose a reputable pet insurance company to enter into an agreement with, many pet insurers have been and gone over the years – you want them to be around to pay your claim – choose a company that has been in business for at least 5 years – best of all choose a publicly traded company so that you can check their financials yourself.
2. Make sure that you buy sufficient coverage – some companies offer coverage based on an outdated Schedule of Benefits that will not give you sufficient coverage for today’s veterinary costs. If your pet is a pure-breed you would be wise to make sure that your coverage includes congenital and hereditary defects.
3. Deductibles and co-payment rates will vary between companies, some companies will offer 100% coverage. Make sure that your deductible won’t increase with age or claim profile.
4. Don’t wait. Puppies and kittens are like four-legged toddlers – extremely accident prone. Insure your pet as soon as it comes home.
5. Even if your pet is older, you should still insure them. However all insurance companies will exclude pre-existing conditions on either a temporary or a permanent basis so again, the sooner you enroll the better.
6. Check the service standards of the company. Turnaround time of claims payment averages 5 business days with the more reputable companies and 24PetWatch Insurance actually offers on-line real-time claims processing at participating clinics - you can simply pay the deductible and walk away!
7. What about purchasing pet insurance to cover maintenance and preventative care? Insurance programs that include coverage for these predictable and affordable items are unlikely to save you money in the long run and frequently shortchange you on coverage when you really need it, unpredictable accidents and illnesses.