Compare Pet Insurance: A Guide For Dummies
Have you tried to compare pet insurance and given up in frustration?
With so many options and the confusing jargon, it’s not surprising.
But if you can recognize and understand the policy options, you can easily compare pet insurance and choose the one that makes sense for you.
To begin, you should know why you’re considering a pet insurance policy. Decide how much you’re willing to spend every month, every year, and for the life of your pet.
COMPARE PET INSURANCE: THE NITTY GRITTY
Most pet insurance companies cover only dogs and cats. Some offer policies for less common household pets like rabbits and snakes. Horse insurance is generally available only from equine insurance companies.
Insurance Policy Options
Pet insurance policies can cover everything from vaccinations and routine care to accidents and illness to cancer and long-term conditions. What most people look for to compare pet insurance is termed a “basic” policy. This type of plan covers unexpected visits to the vet beyond routine health care.
Then again, you may be looking for all-inclusive, or “comprehensive” insurance coverage that covers everything, from routine vet care through emergency visits. The overall cost of each plan is based on coverage levels. This will be important as you compare pet insurance plans.
What They Pay versus What You Pay
Most pet insurance policies will reimburse you for a portion of vet charges you incur and pay. Few actually pay the vet directly. And fewer still, cover 100% of the cost.
You can compare pet insurance by the two types of benefit plans. One reimbursement option is based on a percentage of the actual billed charges. If the vet charges $100, you’ll receive a portion of that back.
Other plans reimburse based on a Schedule of Benefits, or Reasonable and Customary charges. These amounts are based on national or regional averages…or on what the insurance company chooses to pay, which is rarely the same as the vet bill.
What You WILL Pay
Like most other insurance, pet insurance plans have deductibles. As you probably know, this is the amount you have to pay before the insurance
kicks in. Pet insurers take this one step further by setting deductibles on a per incident basis, or by year. This difference could be important to the overall cost of the coverage.
Another other major factor to compare pet insurance reimbursement is the co-pay, or the percentage you pay out of every charge. The higher the co-pay, the lower the premium.
Be sure you look at the policy limits, or the maximum amount they will pay. They can set limits by incident, by year, or by lifetime.
What They Won’t Pay
As you compare pet insurance policies, notice the exclusions, or items that won’t be reimbursed. Some won’t cover certain breeds due to genetic issues or historically high risk for disease. There can be age-related limits or exclusions as well, and for chronic or recurring illness.
The most important exclusion is for pre-existing conditions, ie: health issues that occurred prior to purchasing the policy. Some policies enforce this exclusion every time you renew. In other words, if your pet was sick this year, the policy wouldn’t pay for any related charges next year. Avoid these types of policies if you can.
Other issues you should compare in pet insurance is coverage for dental care, elective procedures, and alternative medicine. Plus, nearly all plans have a waiting period before coverage begins.
COMPARING PET INSURANCE: FIND THE BEST FOR YOU
How do you know which pet insurance plan is right for you? First determine how much you currently spend on pet health care each year. Then compare pet insurance total costs — premiums plus out-of pocket charges — to see what you can afford.
Are you willing to pay more to know you have complete coverage? Or would you rather take a chance, pay less each month, and use other funds to cover routine care and the occasional trip to the vet?
Finally, decide what you’re willing to pay for peace of mind, knowing you’ll never have to choose between your checkbook and the pet who loves you.
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