Is Dog Insurance a Good Way
to Manage Health Costs?

My family has never signed me up for dog insurance. A few months ago, they wish they had. I had been having some "plumbing" problems, so they took me to my Doc.

I'll spare you all the details, but after all was said and done, I had six bladder stones removed and it cost my family $2,000 USD!

"My guts were full of rocks!"

General Thoughts

Dog insurance, just like any health insurance, is an exercise in managing risk.

You people, as humans, really have a very high financial risk if you choose to go without health insurance. If you are in a serious accident or are befallen by a serious illness, your medical expenses could, literally, go into the hundreds of thousands of dollars.

On the other hand, the upper-end of potential medical expenses for us dogs, in a worse-case scenario, could be several thousand dollars. The financial risk is significantly less, but, it is still a hardship if you don't have the money.

Just like health insurance for humans, there are some dog insurance policies that will provide partial payments for health maintenance visits. So, depending upon the math, that may be worth considering.

What this really boils down to for you is what type of person are you as it relates to risk and how do you prefer to manage your finances?

Do you feel better paying a few dollars a month to know that a significant health issue for your furry buddy will not result in a large out-of-pocket expense? So, in a sense, you are prepaying his health costs.

There are times when some of you will win at the dog insurance game. You will have a situation that reimburses more than you have paid in to the insurance company. If this is you, you love dog insurance!

However, you must certainly understand that these companies are in business to make money. Their entire business is predicated on managing the probability that you will pay in more than they will pay out.

This is true whether you have a breed that tends to have more medical issues than the typical mutt (hey, that's me!). If your dog is in a higher risk category, you will pay higher premiums.

So, it really does boil down to whether you just feel better about making regular payments to transfer some of the financial risk to the dog insurance company.

If I Choose Dog Insurance,
Which One is Best?

Here are a few policy features to understand and consider:

* Do they use a "benefit schedule" to pay you or are you reimbursed based upon the actual Vet bill?

* Is wellness/routine care covered and is that important to you, given the premium cost?

* Do your premiums go up as you submit more claims?

* Do they reimburse quickly with understandable explanations?

* Are congenital and hereditary issues covered? Are recurring conditions covered?

* Is there an annual maximum that can be paid out and are there any situations when that amount may be reduced?

* How do your premiums go up as your guy ages?

* Is there a benefit paid for boarding fees in the event that you are hospitalized and can't care for your dog?

* Is there a payment in the event of death? How does that work?

* Some programs include discounts for certain employers, the military, multiple dogs (and other pets), for using certain Docs, etc. Do you qualify for any discounts?

Each plan is different. These companies work hard to try to differentiate themselves and to also be as attractive to you as possible. No one provider will appeal to everyone, since needs and desires are different.

Try Some Math

Before doing some math, you need to settle on one particular policy and use it as your base from which to also consider a couple others. I suggest reviewing at least three in detail.

The two broad categories for consideration are policies that include major illness coverage, that one (hopefully no more than one) big surprise cost vs. a dog insurance policy that also reimburses something for routine care.

Try to compare "apples-to-apples," but also remember that these companies work hard to try to be different. If confused, focus on these two major "styles" of policies.

You will need to make some assumptions when putting together your financial comparisons. You could assume a major illness/accident every seven or eight years, with a doggie life-span of fifteen years. Choose assumptions that make sense to you.

For example, my $2,000 incident occurred at age eleven. I have had no other significant health problems or accidents. For the type of insurance that would have covered some of my "rocks in the gut" expense, I would have had to pay in about $25 USD per month, on average over time:

$25 x 12 months = $300 per year x 11 years = $3,300

And, particularly since the full amount of my $2,000 expense would not have been paid, the math suggests dog insurance would not have been a good deal for my family thus far.

But, what if I have another incident?

Again, the "group averages" on this are always going to work in the favor of the insurance company.

It really does come down to what makes you the most comfortable - maintaining all the risk at zero cost or sharing the risk for a monthly fee?

And, if you choose to share the risk, are you comfortable with that fee?

Back to Home Page