Dog Health Insurance: Things to Look for
Pet health insurance for dogs is still somewhat of a novelty, as only a small minority of dog owners currently invests in these policies. As the market slowly grows, however, it's gotten more competitive, with more and more companies offering pet insurance.
Among consumer advocates, pet insurance can be controversial - many of them believe that instead of paying premiums toward a policy with limited benefits, pet owners would be better served to put away cash in a savings account. They point out that you may easily pay between two and eight thousand dollars in premiums over the life of your pet, and that you might not spend this much in veterinary care. But if you're the kind of pet owner who doesn't like surprise expenses, then it's possible pet insurance may result in a savings for you.
Insurance policies vary widely in their terms of coverage and the amount you'll pay each month in premiums, making it somewhat difficult to compare policies from different companies. Make sure you understand all the terms and know how much of your vet bills insurance will cover and how much you'll be expected to pay.
Currently there is no system in place that provides consumers with pet health insurance ratings. However, here are some specifics to consider as you shop for and compare pet insurance policies:
The insurer: It's always smart to choose an insurance company that's been around for a while and has a good reputation. Your vet may have some thoughts on which companies have proven to be reliable.
Premiums: How much will you pay each month to keep the policy in place? In general, cat insurance premiums start at about $7 a month, while dog insurance can go all the way to $60 a month for some breeds. When you compare policies, don't just look at the premiums alone - cheaper policies usually carry less coverage.
Waiting periods: Does your coverage begin immediately, or does the policy have to be in effect for a period of time before it kicks in? A two-week waiting period is not uncommon.
Exclusions: After the waiting period, if any, is over, are there any conditions that aren't covered? Some policies may exclude certain conditions that are common to a particular breed.
Pre-existing conditions: If your pet has already been treated for a chronic problem, find out if that condition will be excluded for the entire duration of the policy, or if you can obtain coverage after your pet has gone through a period of stability without treatment, usually one year.
Deductibles: Often these are for an amount like $50 or $100, which you'll have to pay out of pocket before your coverage begins. The higher the deductible, the cheaper your premium may be. And be sure you understand exactly how it works - some policies have you meet only one deductible per calendar year, while others may charge you the deductible for each unrelated illness. For more information see our article: Understanding Pet Insurance and Deductibles.
Expenses after deductible: After you meet your deductible, you can expect a certain percentage of your vet bill to be covered, usually 80 or 90 percent. Again, the more you agree to pay out of pocket, the lower your premiums are likely to be. Think about what you can afford as you compare policies.
Included providers: Most pet policies allow you to be treated by any vet you choose, in any part of the country. Be sure this is the case before you buy.
Prescription coverage: Make sure you understand ahead of time which policies cover medicine. A policy without prescription coverage may be cheaper to purchase, but may leave you with more out of pocket expenses later.
Payment procedures: Most pet policies require you to pay the vet up front. You then submit the vet's bill, along with a claim form, and wait for the insurer to reimburse you for the claim. You might want to ask what the average wait time is, from when you submit the claim to when the check is processed.
Restrictions on your pet's age: Will your policy last the lifetime of your pet, or will it be automatically canceled when your pet reaches a certain age? If there is an age limit, check it carefully against the average life span of the breed you own.
Maximum annual payout: Some policies put a limit on the amount you can collect from them in any calendar year. Find out if this is the case. Also find out what the limit is and consider how likely your pet is to go over that amount.
Level of coverage: Again, the amount of your premium may reflect the level of coverage you receive. The most inexpensive policies may only protect your pet in the event of an accident or serious illness, while more comprehensive policies can cover well visits, vaccinations, and even dental care.
Related Advice from Other Dog Owners
A Reputable Pet Insurance Provider
I signed up with VPI when we first got my dog. This was my first experience with pet insurance and its been quite positive. Much easier than human health insurance!
The plan I have is about $30 a month, but they pretty much pay for every visit, medication (including flea and tick meds, if needed) and since my dog, Jack, had a very unexpected surgery at 1 year old (he had an allergic reaction to his rabies shot and needed a resulting tumor removed) it was money well spent. We didn't pay a dime.
They're really easy to deal with; you just print out a claim form and bring it with you to the vet, have the vet sign and then mail it in. You get reimbursed within a week or so, its very fast. There are a few other companies, but this one seems like the best, most established and least expensive.
~Michelle B., owner of Welsh Terrier mix
Where to Find Complaints About Pet Insurance Companies
I would suggest you do a Google search for pet insurance complaints... Recently on Dogster Answers there was a bunch of questions about one of the pet insurance companies; I Googled it and I was amazed at the number of complaints against one major company!
~Evelyn C., owner of Miniature Poodle
The Average Cost of Pet Insurance
Depending on what you want covered, the plans range from $13-$30 a month. I took the $20 plan because it included a lot of tests, dental cleaning, etc. The only time I really have to pay for anything is when my dog has a health problem which would then require me to buy the dog's medicine.
~Rachel J., owner of Chow Chow mix
Where to Compare Pet Insurance Companies
My pet insurance company, Trupanion, has a great comparison chart that includes up-to-date information on all the different policies available. You can find it over here. I have been very happy with Trupanion because they don't have the restrictions that other companies have. They simply pay 90% of vet bills.
~Heather R., owner of an Italian Greyhound