Do you need pet insurance?

Despite his high-level eye and hip clearances and champion bloodline, Presley spends a lot of time in the emergency room. It’s not heartworms, cancer or chronic illness that sideline the frisky, 98-pound golden retriever. He’s just terminally accident-prone.
After a cut on his paw at six months of age resulted in a $500 ER bill, his owners bought pet insurance—health insurance for pets. While their friends and family laughed at the first-time puppy parents’ indulgence, the investment has paid off. Big time.

Presley’s owners estimate the 4-year-old has racked up $1,000 annually in diagnosis and treatment for a series of bloodied paws and the retrieval of a host of ingested, non-digestible items. Besides 60% reimbursement for accidents and injuries, their policy pays for flea/tick and heartworm prevention and annual exams.

While the majority of pet owners are unfamiliar with the concept, pet insurance is gaining ground in the United States. Traditional insurance companies are catching pet owner’s attention by providing complimentary limited coverage. For example, if your pet is riding with you in an insured vehicle, Progressive’s collision coverage pays up to $500 for veterinary bills and medicine. However, specialty carriers backed by national indemnity companies write the bulk of pet policies.

Veterinary Pet Insurance is the country’s largest carrier and an affiliate of National Casualty Company. The lion’s share of its nearly 500,000 policies has been issued to pet owners in New York, New Jersey, Texas and Florida. Only 1,906 have been sold in Louisiana.

Since horses can be both companion animals and financial investments, equine insurance is a subspecialized niche market. Most carriers offer different levels of coverage for cats and dogs. There are policies available for birds, rabbits, ferrets, turtles, goats, rabbits, hamsters, snakes and exotics.

Actuarial data and coverage preference is culled and combined to create the monthly premium. Generally, the younger the pet, the better the rate. The monthly premium depends on the animals’ age, physical condition and level of care from annual exams and preventive care to cancer and trauma surgery.

Unlike its human counterpart, basic pet insurance plans cover accidents, cancer or trauma. Preventive care is an option. The reason: When most owners get a pet, they plan to pay for annual exams and vaccinations; it’s unexpected medical expenses that present the most agonizing decisions.

At VPI, nearly 85% of medical (accident, catastrophic illness) policyholders add on a preventive care package. Depending on the insurer, policies may cover spay/neuter, behavioral therapy, genetic conditions even acupuncture and chiropractic treatment.
Since most of the medical conditions present as emergencies, no pre-authorization is needed. When services are rendered, the owner pays the vet bill in full and submits a claim form with the diagnosis. While some insurers pay their percentage of the vet’s bill directly, most reimburse the owner. Insurers generally have a menu of policy services and a nationwide flat reimbursement rate, so it benefits the owner—financially, at least—to shop around for the best rates.

When comparing policies, VPI’s public relations supervisor Brian Iannessa suggests consumers consider:

– The size and longevity of the company. How long has it been around? How long has it been paying claims?

– Their vet’s recommendation and experience. Is your vet familiar with the company? Has the vet or another client heard about or had good or bad experiences with the company?

– The underwriter’s rating. Who underwrites the medical policy? Is it the company or another national underwriter? What is the insurance rating?

– The coverage provided. Does the provider offer flexible coverage—medical and preventive plans? What are the plan’s options? What are the exclusions? What’s covered and what’s not? To what extent are conditions covered? Is there a lifetime maximum?

Iannessa maintains pet insurance benefits most pet owners. Even young, rescued pets with unknown medical, behavioral and genetic backgrounds are generally insurable. The only exception, he says, is when the pet is too aged with too many pre-existing conditions and so many exclusions.

Most importantly, pet owners should do more than just read their policies. “People are more satisfied with the policy if they understand it,” Iannessa says. “The misconception is that pet insurance covers everything. That’s unrealistic, when you’re paying only $100 a month toward the premium. Reimbursements are typically around 60% to 70%.”

Furthermore, he says, “A lot of people want to see a return on investment. It’s like auto insurance in the peace of mind it brings. I go on the expectation you may not use it this year or next year. But, if your pet gets ill or in an accident, you don’t have to make the decision (about treatment) based on what you have or don’t have in the checking account.”

For Presley’s owners, pet insurance means they’re able to take care of business and their precious hound dog without getting all shook up.

For more information on pet insurance, go to:

National Pet Health Insurance Association

Veterinary Pet Insurance

Petplan

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Besides her 20 years of experience as an editor and writer, Adrian E. Hirsch is a charter board member of Spay Baton Rouge, a nonprofit that spays/neuters feral cats and the pets of low-income residents to stem overpopulation; the Baton Rouge coordinator of Gulf South Golden Retriever Rescue, a nonprofit that rescues golden retrievers from shelters and owners, fosters and finds permanent homes for the dogs; and (along with her twin daughters) a member of Tiger HATS, an LSU Veterinary School service organization that offers animal-assisted therapy.