Caring for Your Pet: Why Pet Insurance Matters
Who doesn’t love their pet? Many people find comfort and companionship in having a furry friend, but not everyone considers the cost of caring for their animal in the event of an emergency. An unexpected vet bill can climb well into thousands, putting a human companion in a vulnerable position to care for their pet while maintaining a healthy budget. Thankfully, there are options for humans to address the cost of their pets’ medical costs. A popular option to help subsidize the cost of an emergency vet expense is obtaining a pet insurance policy. Determining the right type of insurance to choose can be confusing and coverage needs vary from person to person. This article will help clarify topics surrounding pet insurance policies to help you make an informed decision.
How does it work?
Pet insurance is a popular option to help cover vet expenses. It includes paying monthly premiums, choosing a tier of coverage, and selecting a deductible and coverage percentage that fits your needs.
Monthly premiums vary based on factors like the age and breed of your animal, with any pre-existing medical conditions potentially affecting eligibility. Coverage varies by provider, and routine checkups and vaccinations are not automatically included in comprehensive accident and illness plans. Different pet insurance providers can range in coverage percentages, anywhere from 70% to 100% based on your selected policy. This percentage specifies what percent of the bill the insurance provider will cover after the deductible. The deductible is the base amount you will pay in the event of a claim before the insurance provider begins reimbursement. The lower the deductible, the higher the monthly premium. Premium costs fluctuate and might increase over time as your pet gets older. Some policies will charge a transaction fee for each premium payment. If this is the case, explore the option of quarterly or annual payments in order to avoid unnecessary fees. Typically you pay for the vet bill upfront, then upload your receipt onto an app in order to be reimbursed the cost reflected in the coverage details of your policy. Keep your receipts—request that the vet clinic email you a copy in case you lose the physical version. Be prepared to pay for the cost immediately; reimbursement of your funds can take time.
Though managing vet costs upfront can be inconvenient, relying on interest-bearing credit or drawing down money from a separate investment account to cover the entire vet cost out of pocket can lead to an increased debt burden or the potential loss of investment growth.
Is pet Insurance worth it?
I personally have had my Australian Shepherd insured for two years at a cost of roughly thirty dollars a month. I have yet to use my policy, but believe it is in the best interest of my dog to continue paying for insurance. We go on hikes often, and I know that a run in with a snake or a jump too high can create thousands of dollars in vet bills.
According to WebMD, the average median cost of an emergency dog surgery is $3,500. Instead of paying for pet insurance, I decided to save thirty dollars a month in a dedicated high yield savings account for emergency vet costs that yields 4.25% APY compounding monthly, it would take roughly 8.25 years to save $3,500. With our lifestyle in mind, I have decided that it’s worth it to continue paying for pet insurance in order to provide my dog with all the care she might need at a moment's notice. This decision is what I determined to be best for me, but might not be as relatable to someone else with a different pet lifestyle.
There are numerous pet insurance providers with different options and exclusions, as well as the ability to set up a dedicated savings or investment account, that can help plan to cover the cost of an unexpected vet bill. If you’re interested in exploring different options to plan for unexpected costs, stop by the Financial Wellness Center on the fourth floor of our Student Union Building. We’re here to help!