What You Need to Know About Veterinary Pet Insurance

Pets have been beloved family members for centuries, often treated like the humans in the family. One of the most devastating things a family can experience is the illness or loss of a pet. Veterinary medicine becomes more advanced every year, allowing common medical issues to be treated effectively. However, the more in-depth treatments become, the more expensive they are, leaving many pet owners struggling to pay medical bills. In fact, approximately 41 percent of pet owners are concerned that they would be unable to afford the best treatment for their cat or dog in the case of an emergency, according to the Associated Press. Luckily, veterinary pet insurance became an option in 1982. However, only about 1 percent of pet owners actually invest in it.  

While there is no definite answer about whether purchasing pet insurance is the best plan for you, your pet and your family, it is worth some research and a discussion with a veterinarian. After all, it can make the difference between treating your pet and having it euthanized.

When selecting a veterinary pet insurance provider, ask potential companies what conditions they don't cover.

Understanding Veterinary Pet Insurance

Veterinary pet insurance works a little bit differently than the health insurance you use when you visit the doctor's office. Rather than the insurance company working with the doctor's office, you work directly with the insurance company. You would pay the veterinarian's office up front for any of your pet's treatments, and then submit a claim to your insurance company. The insurer would reimburse you for either a portion or the total cost of the treatment. How much money you receive for your claim depends on your provider and the procedures done. However, some companies are willing to work with you and pay the hospital if there isn't a way that you can afford the payment up front. Such payments are in addition to co-pays and premiums, just as with regular health insurance. Most pet insurance companies allow you to visit any licensed veterinarian, but it's worth checking with the company when you find a vet to ensure you'll be covered. 

Because veterinary offices don't typically work with the pet insurance companies, what the insurance companies will cover doesn't usually influence vets' methods. This allows vets to always offer the best course of action if the pet's owners allow it.

Prices for Various Types of Coverage
As with human health insurance, there is no set price for premiums. Pet insurance companies take factors such as location, pet age and breed into account when determining your initial price, and the monthly rates can increase over time. There are many levels of coverage, listed below, so it's best to speak with your family veterinarian to know which is best for your pet.

• Emergency coverage usually costs between $10 and $20 per month and is the cheapest insurance coverage. It doesn't cover standard procedure surgeries, such as spaying and neutering or annual check-ups, but provides for hospitalization and medical treatment after accidents.
• Emergency and illness coverage falls in the range of $25 and $40 per month and covers hospitalization due to accidents and illness. The insurance company will usually cover anything attributed to the emergency, including office visits or X-rays.
• Emergency, illness and routine coverage typically runs between $30 and $60 per month and covers emergency and routine treatments. Yearly physical exams, vaccinations and standard procedures are all covered. 
• Full coverage is the most expensive, costing between $50 and $100 per month and covers any medical expenses that your pet can have. In addition everything covered in the above tiers, full coverage will also allow you to be reimbursed for heartworm prevention, dental care and chronic illnesses.

Most pet insurance companies will have a maximum reimbursement limit for an incident or a cap for how much they will reimburse you for the year - no matter the tier. Caps are usually well above what you need, but it's still beneficial to talk to the insurance company to see what its caps are. Many companies also offer wellness coverage, which covers a few routine procedures, either on its own or in addition to any of the above plans. Check with the insurance company to find out if it covers the procedures you're most concerned with.

Getting Pet Insurance

Unlike health, auto or homeowner's insurance, the majority of people who would benefit from pet insurance don't utilize it. Insurance of all kinds is meant to offer assistance for unplanned expenses that would be hard to pay on your own. However, people tend to underestimate how expensive animals' medical treatments can be, especially if their pets need a specialist. Because these veterinarians tend to deal with intensive-care situations or conditions that require extensive testing or medications, such visits are usually significantly more expensive than the typical trip to the vet. The best way to determine if you should invest in pet health insurance is to talk to your trusted vet, who is familiar with your animal, and get his or her opinion. Here are some things to take into account while deciding if pet insurance is right for you:

• How old is your pet? Young animals don't usually require much medical attention outside of annual physicals, so emergency-only coverage may be the best option for you. However, many pet insurance companies have age caps in regard to how old a pet can be when enrolling for coverage, so keep that in mind.
• What is the state of your finances? Would you be able to spare a few thousand dollars if you had to bring your pet to the hospital today? If you couldn't afford the medical bills out of pocket without reimbursement, pet insurance may be a good choice for you.

Typical Pet Insurance Policyholders
Pet owners who have found themselves in an emergency situation with their animals tend to be more likely to spring for insurance coverage to avoid being hit with extensive bills again. Other pet owners who have never had an extremely ill or injured pet may not understand just how much emergency vet bills can cost, and think they would be wasting their money paying the monthly premiums for pet insurance. There are also pet owners who aren't open to spending a lot of money on their animals, who would just get a new pet if their current ones were seriously ill or injured. If they aren't willing to foot the bill for veterinary procedures, they probably won't pay for pet insurance.

Shopping for Coverage

Shopping for any sort of insurance coverage can be a long and difficult process. Every insurance company is different, and they all offer different types of coverage. Before deciding on a company and insurance plan for your pet, be sure you're familiar with these terms. Some plans may not cover treatments associated with the following conditions:

• Congenital condition: Any condition your pet may have been born with.
• Hereditary condition: A condition your pet may or may not have been born with, which includes hip or elbow dysplasia, and may not become a problem until later in your pet's life.
• Developmental condition: Conditions that are a result of a trigger such as trauma, infections or toxins, early in life.

Pets That May Not Be Covered
In addition to potentially not covering conditions such as the ones listed above, some pet insurance companies opt out of covering certain animals or charge higher premiums. They may choose not to cover certain species, like fish or even certain breeds. For example, you may have a hard time finding coverage for dogs that may fall into the aggressive breed category, including chow chows, pit bulls or rottweilers, because providers may think their nature could lead to excessive medical bills.

Questions to Ask a Potential Provider
Your best bet is to thoroughly research what each provider that you're considering covers after speaking with your vet. There isn't any point in paying high premiums for procedures you'll probably won't need, but it's also senseless to skimp and not have your most expensive procedures covered. While there are always procedures and ailments that won't be covered and chances that coverage will change - also, many insurance companies will stop covering treatment for certain conditions if they get too expensive - you want the most thorough coverage that makes sense for your animal's current and future health. Other questions you should ask your potential pet insurance providers include:

• What percentage of my vet bills are reimbursed? If the provider can't give you percentages, you may want to go with a different company. You want to ensure you're getting adequate coverage.
• What is the deductible, and is it yearly or over the life of my pet?
• Are vaccinations or medications covered?
• Do I need to take my pet in for an exam before I can get coverage, or is there a waiting period?
• Are there any pre-existing conditions or recurring medical problems that are covered with insurance?
• How much are the co-pays?
• Am I able to customize my policy to find deductible and co-pay options that fit my budget?
• Can I bring my pet to any vet or hospital, or does it have to be a member of the American Veterinary Medical Association?
• Does the policy still pay if my pet receives treatment but doesn't survive?

Referral Sources for Pet Insurance
If you find a company that fits your needs and budget, do a quick Internet search to find out if other customers have been satisfied. It's not uncommon for insurance companies to tell you what you want to hear to get you in the door, and then fail to deliver what they sold you on . Ask friends or family members with pets about positive experiences they have had with their pet insurance companies. Of course, you'd prefer to rarely, if ever, have to use your veterinary pet insurance, but it's good to have that peace of mind by knowing that you can have your pet treated no matter the situation.