Pet Health Insurance

Read This Before You Buy Dog Health Insurance.

Owning a dog 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 vet 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 insurance?” Of course Michele didn’t have dog 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 dog and their constant companion.

Dogs, health insurance and the price of love.

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 dogs will require veterinary treatment this year, but only one in ten has any dog insurance of any kind. 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 dog, about 12500 dollars over the life of an average Labrador.

Dog 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 dog, but there is more to it than that. The constant rise in the cost of treatment has led to "dog 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 dog do your homework.

Things you must check before you buy dog 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 the exclusions?

All dog 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, heartworm medication and dental care, often there are limitations for specific illnesses or breeds.

What are the 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 dog, 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 the 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 policy less expensive?

The typical policy elements are vet fees, boarding fees, theft/straying, advertising/reward if your dog 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?

Clearly in Michele's case, health insurance for her dog would have been a good idea, its unlikely that cancer would have been excluded. But no one can advise you whether or not to buy dog health insurance for your particular dog, everyone’s circumstances are different. Some owners choose to deposit a fixed amount each month into an account specifically for the purpose; you could say that is an informal dog insurance plan of their own. If the dog is fortunate and has no serious illness during its life you would have saved up a nice little pot of money, but you have to ask yourself, will you actually put the money away each month? If the answer is probably not, then dog health insurance might be the answer for you, but do read the enrolment documents properly.