Does Your Pet Need Insurance?

A few years ago, my ten year old cat began to lose weight rapidly. Since he never seemed to stop eating, I knew something was wrong. My vet did some blood work and diagnosed hyperthyroidism, a common malady among cats. Since my pet couldn't tolerate the pills, the only treatment option for him was radioactive iodine. The price tag was over two thousand dollars. Since the day I wrote that check, I've been a huge advocate of health insurance for pets.

Pet medical insurance works very much like human medical insurance. You pay a monthly premium (i.e., cost of having the insurance). You may also have to pay deductibles (i.e., amount that you pay before the insurance kicks in) and co-payments for certain procedures (i.e., the insurance pays part of the cost; you pay the other). Typically, pet medical insurance will cover accidents and illnesses, diagnostic testing such as CT scans or blood work, surgery and hospitalization, and prescription medications.

For a higher premium, you can also get health maintenance covered. This includes annual exams and vaccines, flea and worm control, and expenses related to spaying or neutering your pet.

Premiums for pet insurance tend to be very reasonable, usually between ten and fifteen dollars per month for basic coverage of young, healthy animals. Choosing to add routine care like vaccines will probably boost the monthly premium another ten dollars or so.

If you're not sure whether or not you want to insure your pet, ask yourself how much your pet is worth to you. Consider the animal's financial and emotional value. It makes sense to insure a purebred show cat that cost you hundreds of dollars, but it also makes sense to insure a beloved family mongrel you adopted at the local pound for fifty bucks.

Second, look at the cost of insurance vs. the cost of treatment. Assuming your premiums run about $25 per month, a year of health insurance is $300. That may sound steep, but as I learned the hard way, treatment for serious injuries or illnesses can easily run into the thousands of dollars. The insurance premiums aren't so bad in comparison.

Once you've decided you need pet insurance, it's time to do some research into the different companies that provide it. Most pet insurance companies outline their policies online and offer instant quotes to make your shopping easier.

Before selecting an insurance plan for your pet, read the policy carefully--and don't forget the fine print. Some policies won't cover hereditary conditions common to your type of pet. Others have high deductibles, low coverage caps (i.e., the upper amount that the insurance will pay) on certain treatments, or an extra charge for older animals. Most policies will not cover pre-existing conditions.

Also, beware of bait and switch tactics. Most insurance companies are honest, but some tempt you with low premiums online, only to raise the price once you thought you've made a deal. If a company does this to you, walk away. If you can't trust them with money, you surely can't trust them with your precious pet.

Pet medical insurance may not be for everybody, but it can save you money should your pet become ill or injured. And face it, if your four-footed companion is sick, you want to focus your attention on getting the best care for him, not on worrying about finances.