Pets are a commonality in many American households. In fact, according to the 2017-2018 APPA National Pet Owners Survey, 84.6 million homes have a pet. But pets are so much more than housemates—they are constant companions with nothing more to offer than unconditional love and comradery. The cost of maintaining their health and well-being, however, is conditional.
The long-term health of dogs, cats and less-than-conventional pets of the avian and reptilian variety are an expense that many never think to account for. While the cost and budgeting of their food is easily quantifiable, there are certain instances when a pet becomes sick or unwell. Most pets are mammals just like their owners and are susceptible to the very same maladies, including diabetes, cataracts and cancer. Treatment for these can cost several thousands of dollars and surgeries for physical traumas, such as those that result from automobile accidents or careless driving, can cost just as much.
The emotional trauma of a sick or wounded pet is incalculable and is exponentially greater when the cost of treating an animal is too high, which results in what has been termed “economic euthanasia.” In these instances, pets are put down because the cost of treatment is too expensive, and it’s ultimately cheaper to euthanize the animal than to pay for surgeries or medicine. There is, however, a way to possibly avoid this economic decision.
"Pet insurance is the fastest growing category in the insurance arena," said Katie Grant, CEO of PetFirst, a pet health insurance provider. "Pet owners are seeking ways to protect their pet from accidents and illnesses, while also protecting their wallet from unpredictable expenses associated with vet bills."
Pet insurance offers a potential solution to many pet owners. While insurance companies have begun to take notice of the relationship between insurance holders and their beloved companions, several other insurance companies have emerged in order to directly offer pet insurance outside of standard insurance packages. Examples include Healthy Paws Pet Insurance & Foundation, Trupanion and PetFirst.
According to PetFirst, unlike human health insurance plans, pet insurance is owner-reimbursement based and pet owners can "use any licensed vet, animal hospital, emergency clinic or veterinary specialist nationwide." In other words, there are "no network of providers to worry about." This, however, means that pet owners must be able to cover the full cost of the treatment and be in a financial position to play the waiting game for reimbursement. This makes the viability of pet insurance inert for those on a fixed or tight budget, unless capital is set aside specifically for the pet, for example, in a savings account or a rainy-day fund.
The cost of pet insurance varies based on the pet's age, breed and zip code, as well as the type of plan. There are many choices to consider when deciding on the right plan which include selecting the reimbursement percentage, deductible amount and coverage limit, as well as add-ons for routine care (i.e. teeth cleaning, flea/tick prevention, vaccinations), prescription food, and breeders coverage.
The best way to decide on pet insurance is to speak with a veterinarian and ask questions about your animal’s breed and whether or not they are prone to any particular illness or disability.