You are viewing this article in the AnnArbor.com archives. For the latest breaking news and updates in Ann Arbor and the surrounding area, see MLive.com/ann-arbor
Posted on Thu, Jun 23, 2011 : 11:23 a.m.

More pet owners are getting health insurance; do you find it valuable?

By Lorrie Shaw

booboodogiluvrhinestones.jpg

flickr photo courtesy of iluvrhinestones

A common thing that you'll hear from pet owners is how expensive that it can be to go to the vet. Many new pet owners are likely thinking: 'I had no idea how much it would cost to get basic veterinary care for my four-legged friend.'

We've all been there, or will be, and one phrase is heard time and time again: It's worth every penny.

It might leave one feeling a little underwhelmed leaving the vet's office after a wellness visit, paying out the money that is necessary to keep pets healthy with preventative medicines, vaccinations and the like.

But, let's remember: vets cover pretty much everything under the sun, from dermatology, dentistry, surgery and countless other areas of medicine.

One feels that way until a veterinary visit either uncovers or confirms a serious issue that needs attention.

Anyone who has been there can attest that the first thing that comes to mind when you realize that a pet needs treatment beyond a shot — or even couple of week's worth of pills to help heal what is ailing them — is that you're glad something can help your four-legged companion.

Then it suddenly hits you: 'What is this going to cost? Can I afford it?'

Lots of questions begin coming up.

The great thing about veterinary medicine today is that so much more can be done in vast capacities: surgery, pain and diabetes management and more. Pets are living longer, and because of that — just like humans — more drugs and treatments are on the market to help make life easier and more comfortable. Those cost money, too.

That being said, emergency medicine is an area that pet owners never want to venture into where their animals are concerned, but so glad that it's there if the need arises. Accidental injuries, poisonings and the like are common and far more pets are saved because of the technology and medicine available.

All of this comes at a cost, though. Thousands, sometimes. Many pet owners pay the fees out-of-pocket. Others use CareCredit to afford the medical care.

Sometimes you'll hear a pet owner joke that he's in the wrong business — he should have been a vet. All joking aside, vets have huge amounts of debt when they graduate vet school, and a veterinary office is expensive to run.

But those who think veterinary medicine is lucrative might want to check the industry of pet health insurance.

A growing trend among pet owners is to purchase pet health insurance to help offset the out-of-pocket costs. So much so, that the industry has seen a 21 percent growth spurt in the four years since 2005 — totaling $303 million in 2009.

By 2012, an estimated $1.1 billion is projected to be the amount of pet health insurance sales, says an earlier Packaged Facts estimate cited by the North American Pet Health Insurance Association (NAPHIA).

At present, a handful of companies now offer pet health insurance.

The interesting thing is that the recession has possibly caused a slowing in the sales of veterinary services due to pet owners deciding to forgo routine vet visits for their pets.

Are you one of the many who has purchased pet health insurance? Do you that it's been worth it? Participate in the conversation by taking our poll below.

You can read more here on te topic in a recent article on DVM360.



Lorrie Shaw is lead pets blogger for AnnArbor.com and owner of Professional Pet Sitting. Follow her pet adventures on Twitter.

Comments

KathrynHahn

Fri, Jun 24, 2011 : 8:07 a.m.

I had pet insurance, but cancelled it after I was no longer insured myself. Besides, it only covered accidents, unexpected emergencies, etc. All my regular office visits, vaccinations, heartworm tests (all the routine stuff) were NOT covered and all out of pocket expense. I wish it was more practical, but at this time it doesn't work with my budget.

Peter Jameson

Fri, Jun 24, 2011 : 3:09 a.m.

This couldn't be more idiotic. I've had three dogs in my life and none of them had needed surgery. I'll take my chances.

Sparky79

Fri, Jun 24, 2011 : 12:55 a.m.

First off, I highly recommend the website <a href="http://www.petinsurancereview.com" rel='nofollow'>http://www.petinsurancereview.com</a> before purchasing any pet insurance. Like every other insurance industry, some companies are much better than others. That said, I have pet insurance for both of my dogs through Embrace Pet Insurance. When I started them on it four years ago I was paying about $40/month total for the two of them. Now it's a little over $50/month. Not bad. Wish my own health insurance was that cheap every month! I have it for emergency situations only, so all the yearly routine shots, etc... are NOT covered. A $200 yearly deductible for each dog I pay first, then they cover 90% of any costs beyond that. So far I've crossed the deductible for each dog once and was reimbursed promptly. Have I &quot;made back&quot; what I've paid so far? No. But I have peace of mind knowing it's there if I need it. Think of it like car insurance. You pay every month, but you really only use it if you have an accident. How often do you have an accident?

RunsWithScissors

Fri, Jun 24, 2011 : 12:52 a.m.

I'm in a situation where I can't afford health insurance for myself. I'm self-employed and I have pets. It's a cynical approach but I've already determined an amount beyond which I cannot pay for unforeseen incidents. All of my pets have their vaccinations, are fed well, and are healthy. I can provide for some adjustments (e.g., one of my cats required insulin shots daily for 5 years before he passed away) yet am prepared to make a tough decision when the going gets tough. I cannot see how pet insurance can improve on my pragmatic approach.

dotdash

Thu, Jun 23, 2011 : 10:25 p.m.

Buying insurance is preferring to take a sure loss over the small chance of a large loss. And insurance companies make a lot of money offering you that choice. Why not just sock some money away every month? Then if your pet dies old and tired in its sleep, you will have the money, not the insurance company.

Sparky79

Fri, Jun 24, 2011 : 1:10 a.m.

&quot;Why not just sock some money away every month?&quot; Well, I have two dogs and I pay $50/month to cover them, so lets say I only had one dog. My pet insurance has averaged about $25/month during the first five years, so if I just put money aside I'd have socked away $1,500. Sounds like a lot, until your dog tears an ACL in one of his legs and needs surgery. Cost of ACL surgery on one leg? Around $2,500-3,000. At least that's what my friend paid for her five year old dog's surgery a few years ago. Now you got to come up with a nice chunk of change to make up the difference, whereas under my pet insurance I'd have to pay a $200 deductible then 10 percent of the rest ($250). Much easier for me to stomach. And I've known about five dogs that have needed ACL surgery in the past few years. Not cheap! In my brother's case, one of his dogs injured a paw back in December. His dog has been going to weekly rehab. Cost of rehab: $60/week. He's been going for this whole year, which we're about half way through. $60 x 26 weeks = $1,560 out of pocket. Who knows how much longer he's going to need rehab, too. Thankfully he has pet insurance. The problem with just socking away money is you never know how early in a dog's life problems with occur and how much it's going to cost (and in my experience, it ain't cheap!). One of my dogs suffered a laceration on his leg when he was one year old that required surgery. Thankfully I was insured because I doubt I would have put enough money away to pay for it by then. I get what you're saying, but pet insurance is no different than health, car, home owner's, etc... insurance. You pay for it every month, but it's only there when you need it. And I'm glad I have it.

Mick52

Thu, Jun 23, 2011 : 6:45 p.m.

I may take some heat for this, but I have always felt that a single person (at least) who has a pet and works for an employers who provides health insurance for human dependents should be able to do the same with pet insurance. For some people their pets are their beloved companions and I think it appropriate to protect them too.