Is Pet Insurance Worthwhile?

Two years ago, Consumer Reports said no. An owner would be better off
building a savings account.

The problems are that 1) not many companies offer pet insurance, 2) not many owners purchased coverage and 3) not many veterinarians encourage clients to use pet insurance. The result is expensive plans with many exclusions.

As veterinary treatment continues to become more sophisticated and more expensive, however, it may be worthwhile to take another look at pet insurance.

Consider how much you spend a year on veterinary care, the age of your dog and his potential problems. Develop estimate(s) for 1 to 5 years and then see how expensive premiums would be for the same period and how much of your expenses they would cover.

There are several plans you should evaluate:

1. Petco - This major pet products store offers the PetCare Pet Insurance Program. As of this writing, they charge $1 for the first month and $10.75 each month thereafter. That's about $120 a year. One major note - this plan does not cover dogs older than 6-years of age. Visit: http://www.petco.com

2. American Kennel Club - AKC offers Pet Healthcare Plan. It's more expensive ($35 a month for standard coverage) but there's no age limit on dogs. Visit: http://www.petpartnersinc.com.

3. Veterinary Pet Insurance - VPI has about 85% of the market and offers discounted programs through many corporations and organizations. For example, Iams has teamed with VPI to offer an insurance plan.

Your premium is based on your dog's age, health and any discounts your get, but runs $100-$300 a year depending on the coverage. Dogs of any age may be insured.
Visit: http://www.iams.com or http://www.petinsurance.com.

4. PETsMART - Optimum Wellness Plan is affiliated with PETsMART and operates the chain of Banfield Pet Hospitals at about 400 locations. Their insurance is good only at those hospitals and standard coverage is about $200 a year.
Visit: http://www.petsmart.com/banfield/index.shtml.

Alternative to insurance is discount card
5. Pet Assure - With this company, you pay an annual fee of $99 for one pet and receive discounts of 25% from affiliated vendors which include veterinarians, pet sitters and groomers.

To see if this makes sense for you, visit their website and see if vets and other providers you want to use are members of Pet Assure. Depending on how frequently you use a vet or groomer, this plan may make sense for you.
Visit: http://www.petassure.com/pa/index.asp.

In deciding whether to buy pet insurance, be sure to consider:

Plan affiliations. See if your employer or pet-industry organization you belong to has an affiliation with one of the plans. Some companies make a contribution to premiums while others ensure employees get a group rate.

Coverage exclusions. Many don't cover routine vet visits and others don't cover genetic or hereditary problems. None will cover pre-existing conditions from day one. Some won't ever cover them while others make you wait x-days. Many policies exclude dental and maternity care.

Plan exclusions. Some plans won't cover senior canines and some won't cover certain breeds. Not all plans operate in all states.

Plan limits. Does it set annual, life-time or per-illness limits?

Premium increases. Do rates go up as your dog ages or if he has chronic health problems? Some plans charge as much as $500 a year for older dogs.

Premium discounts. Do you get discounts for multiple pets?
Payment process. Does the plan pay the vet or you?

Plan providers. Will your vet accept the plan? Many vets are still unenthusiastic about insurance. Don't buy a policy until you've checked with the vet you want to use.

Best advice Evaluate carefully but always promote your dog's good health by feeding him a balanced premium dog food; ensuring he gets some exercise and isn't overweight; and keeping his vaccinations up-to-date.

P.S. Visit http://www.ToyBreeds.com
next month for a new edition of the Bone-Mot™.

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