Dog Insurance, Pet Insurance
Pet
health insurance pays the veterinary costs if one's pet becomes ill or is
injured in an accident. Some policies will also pay out when the pet dies, or
if it's lost or stolen.
The
purpose of pet insurance is to mitigate the risk of incurring significant
expense to treat ill or injured pets. As veterinary medicine is increasingly
employing expensive medical techniques and drugs, and owners have higher expectations
for their pets' health care and standard of living than previously, the market
for pet insurance has increased.
How policies work
Many
pet owners believe pet insurance is a variation of human health insurance;
however, pet insurance is actually a form of property insurance. As such, pet
insurance reimburses the owner after the pet has received care and the owner
submits a claim to the insurance company.
Policies
in the United States and Canada either pay off a benefit schedule or pay a
percentage of the vet costs (up to 90%), after reaching a deductible, depending
on the company and the specific policy. The owner usually pays the amount due
to the veterinarian and then sends in the claim form and receives
reimbursement, which some companies and policies limit according to their own
schedules of necessary and usual charges. For very high bills, some
veterinarians allow the owner to put off payment until the insurance claim is processed.
Some insurers pay veterinarians directly on behalf of customers. Most American
and Canadian policies require the pet owner to submit a request for fees incurred.
Previously,
most pet insurance plans did not pay for preventative care (such as
vaccinations) or elective procedures (such as neutering). Recently, however,
some companies in Canada, the United Kingdom, and the United States are
offering routine-care coverage, sometimes called comprehensive coverage. Dental
care, prescription drugs and alternative treatments, such as physiotherapy and
acupuncture, are also covered by some providers.
Categories
There
are two categories of insurance policies for pets: non-lifetime and lifetime.
The
first covers buyers for most conditions suffered by their pet during the course
of a policy year but, on renewal in a following year, a condition that has been
claimed for will be excluded. If that condition needs further treatment the pet
owner will have to pay for that himself.
The
second category covers a pet for ongoing conditions throughout the pet’s
lifetime so that, if a condition is claimed for in the first year, it will not
be excluded in subsequent years. However, lifetime policies also have limits:
some have limits “per condition”, others have limits “per condition, per year”,
and others have limits “per year”, all of which have different implications for
a pet owner whose pet needs treatment year after year, so it is wise to be
clear which type of lifetime policy you are considering.
In
addition, companies often limit coverage for pre-existing conditions in order
to eliminate fraudulent consumers, thus giving owners an incentive to insure
even very young animals, who are not expected to incur high veterinary costs
while they are still healthy. There is usually a short period after a pet insurance
policy is bought when the holder will be unable to claim for sickness, often no
more than 14 days from inception. This is to cover illnesses contracted before
the pet was covered but whose symptoms appeared only after coverage has begun.
Some
insurers offer options not directly related to pet health, including covering
boarding costs for animals whose owners are hospitalized, or costs (such as
rewards or posters) associated with retrieving lost animals. Some policies also
include travel cancellation coverage if owners must remain with pets who need
urgent treatment or are dying.
The difference between
companies
Many
pet insurance companies are beginning to offer the pet owner more of an ability
to customize their coverage by allowing them to choose their own level of
deductible or co-insurance. This allows the pet owner to control their monthly
premium and choose the level of coverage that suits them the best.
The
smart consumer will always check the details before signing up for a policy
which may not suit the needs of your budget and/or your pet. There are a number
of differences between pet insurance companies. These differences often impact
the cost of the monthly premium or the way in which you would get reimbursed
after a veterinary visit. Some of the main differences are:
- Whether congenital and hereditary conditions
(like hip dysplasia, heart defects, eye cataracts or diabetes) are covered.
- How the reimbursement is calculated (based on
the actual vet bill, a benefit schedule or usual and customary rates).
- Whether there are any limits or caps applied
(per incident, per year or over the pet’s lifetime).
- Whether there is an annual contract that
determines anything diagnosed in the previous year of coverage is considered
pre-existing the next year.
