Is Pet Insurance Worth the Cost?

Every day on my way to work I pass a pet clinic. For the past month or so, the sign outside has read "Pet Insurance Saves Lives." Obviously, they're selling pet insurance inside, but seeing the sign brought up the issue of pet insurance again and I wondered if it was a good deal or not. Then, reading Parade magazine a week or so ago, I stumbled upon an article titled "Should I Get Pet Insurance?" Here are their thoughts when it comes to the economics of pet insurance:

You easily can spend more than $7,000 on premiums over your pet’s lifetime. But don’t pick a plan based on price alone—the cheapest may not be the best. Usually, lower monthly premiums mean higher deductibles and/or co-payments. Estimate how much you spend a year on veterinary care and how much you ultimately can afford. Some vets feel that pet insurance is best for major expenses or emergencies but not for routine costs, which you could pay out of pocket.

Hmmmmm. $7,000? If a pet lives 14 years, that's $500 per year alone on insurance. This seems a bit high to me. Is this the going rate?

In the end, I guess it comes down to your philosophy on pet care and what you plan to do if/when you pet gets sick. Some people choose not to make extraordinary efforts to save a pet while others will do whatever it takes to save what they consider a member of the family. Pet insurance probably doesn't work for the former group but is likely a good move for the latter group (as long as you get the correct policy -- see the Parade article for details). Does this sound like a good rule of thumb to you?

Comments

[Ciji]

That's a great general rule, FMF.

I think Pet Insurance is so worth it! It goes beyond when the dog gets old and their health is failing. My cousin's 3 year-old dog got sick from the tainted Menu Foods dog food. Her dog suffered mild kidney failure. With insurance, my cousin only had to pay $100 out of pocket for her treatment, whereas without insurance she's could have had to fork over $16,000 cash (most vets don't do financing or payment plans). Yes, Menu Foods promised to 'reimburse' pet owners for any medical bills incurred, but what if my cousin had to fork over the $6K up front? Most people don't have that kind of extra money lying around for a pet. In a country where doggie dialysis is $10K a session, her $29.99 premiums were well worth it! (The dog made a full recovery, by the way.)

Personally, I have pet insurance on my dog. I pay $14.95 per month. Now, when he gets older, I may or may not opt to use any means necessary to prolong his life. The insurance is there so money isn't even part of that decision. When it comes to my dogs life, I don't want it to be a financial decision but an emotional one.

[dog and cat owner]

You might want to first check out what most pet insurance covers. Much like your own health insurance, you'll quickly find out that dental isn't covered and most vet visits are not covered either. Does your dog or cat have a pre-existing condition, guess what that won't be covered either in most cases. if you're pet is discovered with some problem within the first two weeks of being covered you'd better hope that nothing is discovered or that won't be covered either.