Pet Insurance a New Trend in Veterinary Care

A Insurance Article Contributed by Gloria Mikus

How Can Pet Insurance Help

Although pet insurance has been around for 20 years or so, many pet owners are not aware that it exists. Increased interest in pet insurance is primarily a result of the increased cost of pet health care, which is providing more effective treatment options for sick or injured animals. Treatments are now both more sophisticated and costly often rivaling that of human patients and can quickly add up to a substantial bill. Pet insurance can help with the increased financial risk of caring for a beloved pet.

In 2002, there were more than 61 million dogs and 69 millions cats in the U.S with more than 60% of all households owning a dog or cat. 91% of owners took their pets to the vet for vaccinations and preventive care. Of these, only between 1 and 2% of the owners had pet insurance. However, since some pet health insurance companies started to market their product in veterinary offices, there has been a 45% growth rate in pet insurance products in the last 5 years.

How Does Pet Insurance Work

Pet insurance works the same as human insurance. Insurers require premiums based on such factors as the age and type of the pet, pre-existing conditions, lifestyle(show dog versus service dog, indoor versus outdoor cat) and the area of the country in which they live. The actual policy fees vary greatly depending on the package that an owner chooses such as a comprehensive plan which covers routine checkups and preventive care or a plan that covers only accidents and illness.

Pet insurance also requires deductibles which range from $40 to $100 with the average around $100 per illness. Most companies offer plans for cats and dogs beginning at 6 to 8 weeks with no upper age limit. There are also plans that cover birds, rabbits, guinea pigs, snakes and other common exotic pets with different age limits and restrictions.

Some companies will cover pre-existing conditions it they are controlled after a waiting period of 6 months(average), others refuse any animal with a current or terminal illness. Plan usually cover accidents immediately but may require a 30 day waiting period for an illness. Most plans offer a discount for additional pets.

Owners need to evaluate the benefits of pet health insurance to determine whether it is a good choice for their situation. There are other choices such as discount programs on services and financial aid to pet owners from not-profit groups. Veterinarians sometimes offer wellness packages, generic health checkup and multi-pet discounts. If the owners decides that pet insurance is the way to go, there are some things to remember:

How to Choose a Pet Insurance Provider

a. Insurers offer different coverage, overall costs, deductible and limitations.

b. Pet insurance costs increase as the pet ages.

c. Research the companies like you would if you were buying coverage for yourself. Find a company that you trust and that offers the best solutions for your pet's needs and your budget.