By
Charish
Everything you need to know about Pet Insurance
As veterinary medicine progresses, so does the cost associated with it. That’s why having pet health insurance has become more important for any pet owner. Having pet health insurance prepares pet owners for those unexpected medical costs and helps them save money on sudden vet bills.
So before we start learning more about Pet health insurance, let’s look at the basics of pet health insurance and what it does.
According to Investopedia, “Pet insurance is a policy purchased by a pet owner to offset the overall cost of their animal’s medical bills.”
Much like human health insurance, pet insurance gives you coverage for your pet’s future veterinary costs. When your pet has a bill, even with insurance there’s often there’s an out-of-pocket deductible that pet owners still need to pay. Several factors affect the cost and coverage of pet health insurance.
How Does Pet Insurance Work?
Pet insurance works like renter’s insurance. There’s a monthly premium that a pet owner pays to the pet insurance company for the coverage. Your pet’s insurance plan should explain which conditions or expenses will be covered, the amount that will be reimbursed, the amount of the deductible, and the maximum payout or the annual limit.
In most cases, pet insurance companies will reimburse the policyholder instead of paying the vet directly. This will lessen the burden of looking for a network of vets that your insurance covers.
This means you can find any licensed vet clinic or animal hospital in the U.S. and you’ll get a reimbursement with qualifying veterinarian costs later.
Get $10 Off your first month of PetFirst pet insurance!
Pet insurance companies such as PetFirst offer a comprehensive healthcare plan for your pets. Like other companies, PetFirst works in three easy steps:
- Visit any veterinarian. The company also highlights that specialists and emergency clinics are included.
- Submit a claim. It’s as simple as taking a photo of your pet’s medical bill and submitting it.
- Get reimbursement for the payment you made. The company claims that you can get reimbursement for up to 90% of what you’ve paid from your vet bill.
How to Choose a Pet Insurance Plan
A pet insurance plan can provide peace of mind for pet owners. It is crucial when unexpected medical veterinary bills arise.
While it’s helpful for those costly veterinary expenses, it’s also important to remember that pet insurance plans do not cover pre-existing conditions.
We’ll focus on some of the most key factors to consider when buying health insurance for your beloved pets:
- Excess payments
- Maximum coverage
- Period of coverage
- Direct claims
- The small print
- Waiting period
- Percentage
- Small pet insurance
Excess payments
Think of when you’re getting health insurance for yourself and your loved ones. You typically ask: How much do you have to pay before the insurance takes over the medical bill? You may think that getting a cheaper insurance plan would save you money while making you feel that you’ve got everything covered.
Here’s how it works: When your pet gets suddenly sick or has an accident, you pay a certain amount of the bill before the insurance starts to cover the expenses. This usually means you’re paying hundreds of dollars, and your pet insurance is paying thousands. Remember that getting health insurance for our pets is for future unexpectedly steep vet bills.
Make sure that the excess payment is an amount that you can still afford. Some insurance companies like PetFirst let you choose the deductible that you can afford — between $50 and $500. A higher deductible means a lower monthly premium.
Maximum coverage
Some cheap policies cover up to $2000 or $3000 per condition. But is that enough? If your pet has a fracture that needs surgery and physiotherapy, you could see costs rising to $1000 up to $5000, which means you’re still getting billed long after the insurance limit has been reached.
It’s a similar situation with ongoing medical conditions, like diabetes or hypothyroidism. Make sure you know what the maximum coverage of your insurance plan is.
Period of coverage
Some policies tempt you with high maximum coverage, but when you read the small print, it says that each condition is only covered for 12 months! After that, you’re on your own. Look for a policy that offers lifetime insurance.
This means that if your pet is diagnosed with an ongoing medical condition, the insurance will continue to cover them for the rest of their lives.
Direct claims
Is your vet clinic able to do direct claims from your insurance company? Some companies work with practices so that they handle the bill directly. Others need you to pay upfront, and then you claim back from the insurance company.
That’s all well and good if you have the cash to hand, but the process of claiming back can take up to two months, which could leave you seriously out of pocket in an emergency.
Check with your vet clinic for which insurance companies they can make direct claims with.
The small print
Insurance is only valid if you meet the conditions in the small print. That may mean complying with certain vaccination schedules, routine preventative medication, or other conditions. It may also mean not having elective procedures done, like tail docking or ear clipping. If you don’t keep up your end of the bargain, it may invalidate your policy.
Other companies base their reimbursements on what they think is a reasonable price for a procedure, rather than what you actually paid at the vet’s. This means that if your pet’s individual condition warranted extra steps, such as additional monitoring during an anesthetic, or extra screening or diagnostics during the process, the insurance company might not cover those costs at all.
Waiting period
Waiting periods are protection for the insurance companies from people getting pet insurance when they know their pet is already sick or injured. If you buy insurance today and take your pet to the vet tomorrow, it probably won’t be covered!
The standard waiting period for illness is 2 weeks or 14 days as no insurance company wants pet owners to buy pet insurance once they’ve only found out about their pet’s new illnesses or any health condition.
For injuries, some companies use the same 14 day waiting period, while others offer a shorter wait period of 1-2 days.
Percentage
Some insurance policies only cover a percentage of costs after the excess, not all the costs. So pet owners would still need to pay for at least 10 – 25% of the total vet bills. Some insurance companies will let you choose from 70%, 80%, or even 90% options, so you can tailor your policy to suit you best.
Each option has its advantages. By choosing a lower percentage, you can pay a lower premium. And if you decide to choose the higher percentage, you’ll be able to receive more cash claims later on.
Do small pets need insurance?
Yes! Rabbits may be considered children’s pets, but they have complicated health needs and the costs of treating illness and injury in rabbits can be also pricey:
- Non-surgical treatment costs range between $100 and $500.
- Surgical treatment can cost between $1000 and $3000.
Much like other health procedures, medicine for our beloved bunny friends is no exception.
Some key reminders that you should consider when looking for a policy for your bunny friends are:
- Affordable excess payments
- Enough high limit coverage for surgery or inpatient care
- Covers dental work
- Comes from a reputable company including good reviews for their customer service
Pro tip:
If you choose not to take out health insurance for your rabbit, it is sensible to think about putting a little money aside each month to form a health care fund that you can turn to in an emergency.
To learn more about rabbit pet care, you can also grab a copy of the book, “Pet Rabbit Care” by Hannah Bennett.
What Pet Insurance Doesn’t Cover
As pet parents, we understand that getting pet insurance is crucial for unexpected vet bills when our beloved pets got sick. But getting pet insurance does not guarantee all medical vet expenses are covered.
To put it simply, a typical pet insurance policy does not cover routine appointments and procedures to keep your dog or cat healthy. They only cover bigger one-time expenses and emergencies.
There are exceptions: Some vet practices and some insurance companies offer a wellness package that splits these costs into a monthly or annual payment. With PetFirst, you can opt in for this cover for an additional premium of $125 for cats to $575 for large dogs.
Conclusion
Getting pet insurance can give us peace of mind and confidence that we can make the important (often life-saving) healthcare decisions that will be in the best interests of our pets. Insurance allows each pet parent to focus on their loving relationship with their pet, instead of worrying about unexpected medical bills.