Owning a pet can be an expensive business, as a close friend of mine recently found out. When Michele’s Labrador Lucy recently became lethargic and generally unwell she took it along to the local veterinary hospital for a check up. The veterinary couldn’t find anything with the first examination but obviously had suspicions that the problem wasn’t going to go away. “I am going to have to run some tests,” he said. “Do you have veterinary pet insurance?” Of course Michele didn’t have pet insurance for Lucy, or for any other of her pets for that matter.

Lucy was found to have a cancer; the good news was that the vet offered hope of a “good chance of recovery, with the right treatment”. But warned that it would be expensive and there were no guarantees. He had obviously seen people with this choice before, “Why not discuss it with your husband, before we make a final decision.” But it wasn’t her husband that was the problem, it was the children, Lucy was their pet and a constant companion.

Pet health insurance "may" save your pets life.

Thankfully Michele and her husband could afford to give Lucy a chance. The cost of initial surgery and treatment (which is still ongoing) is already over 4200 dollars; the good news is that Lucy will “probably” make a full recovery.

Michele is not on her own, it is estimated that one in three domestic pets (dogs or cats) will require veterinary treatment this year, but only one in ten has any pet health insurance. Pet health insurance companies always exaggerate when trying to sell their products, but even conservative estimates put the yearly cost of veterinary care at around 1000 dollars per year over the life of the pet, about 12500 dollars over the life of an average Labrador.

Pet Health Insurance is a good idea, isn’t it?

Lucy’s story is real, it is happening now. It is easy to say that Michele should have had some kind of animal health insurance for her pet, but there is more to it than that. The constant rise in the cost of treatment has led to pet insurance companies springing up all over the place. The cost of cover can be very expensive and often the policies are riddled with exceptions and exclusions that may not become apparent until you need to actually make a claim. If you are going to buy veterinary care insurance for your pet do your homework.

Things you must check before you buy pet health insurance

Does the insurance company insist on using their Veterinarians?
Often companies have approved lists of the veterinarians you are allowed to use; if traveling is a problem for you clearly you will need to give these providers a miss.

What are insurance exclusions?

All pet health insurance policies have exclusions. The most common is the "pre-existing condition" exclusion, usually defined as "injuries, medical conditions and symptoms of concern that were evident prior to enrollment." Other exclusions may include neutering/spaying, vaccinations, hip-dysplasia, flea control, heart worm medication and dental care, often there are limitations for specific illnesses or breeds.

What are insurance policy deductibles are there any co-pay requirements?

Some companies will charge a flat deductible (or excess) of $50 or more, depending on the age of the pet, for each procedure; others will require a co-pay usually a percentage of the veterinarian's fee. These are intended to lessen both the number of total claims paid, and the number of unnecessary procedures and diagnostic tests.

What are insurance policy caps?

Many companies have a cap (maximum) amount payable for each illness or procedure. There may even be an annual cap, or even a life time cap over which no further coverage is provided.

Can I make the dog insurance policy less expensive?

The typical policy elements are vet fees, boarding fees, theft/straying, advertising/reward if your pet is lost, and third party liability. Examine how many of these are genuinely important to you. Will the insurer remove them from the policy and how much will you save? Ask “is this the best price you can offer?”

What's the bottom line?

No one can advise you whether or not to buy pet health insurance for your particular pet, everyone’s circumstances are different. I personally choose to deposit a fixed amount each month into an account specifically for the purpose; you could say that I have an informal pet care insurance plan of my own.