When comparing different pet insurance companies it’s important to keep in mind that in the United States more than 50 companies have gone out of business during the past 20 years. In addition, only a handful that are in business today have been operating for more than a few years. Longevity, history, and reputation is definitely a key consideration when choosing an insurance policy for your pet. You don’t want to sign up for a policy only to discover a short time later that the company is unable to cover your claim because they’ve gone out of business or have mismanaged their funds.
In addition to reputation and experience, there’s a few questions you should ask yourself when deciding what type of policy is best for you and your pet. These questions relate to benefit schedules, hereditary conditions, chronic conditions, and customizable policies which are all discussed below.
What is the Reputation and Experience of the Company?
In order to evaluate the companies reputation and experience you should make sure that the company has a solid history of covering pets and paying claims. A good place to start is to make sure the company has an AM Best rating of “A” or higher. AM Best is an organization that specializes in rating different types of insurance and risk-bearing entities and provides in-depth reports about the financial strength and stability of different companies. The company was founded in 1899 and has offices located in the United States, the United Kingdom, and Hong Kong.
Does the Company Use Benefit Schedules?
When it comes to pet health insurance there are different types of coverage available and you should know that not all pet insurance companies reimburse claims the same way. One thing you’ll want to watch for is if the company reimburses claims based on a benefit schedule. What that means is that the policy will only pay up to a specified amount for any type of illness, surgery, or injury. So, over the lifetime of your pet, the policy will only pay up to a set figure per condition, even though the total cost of treatment may end up costing more. So, once your pet’s treatment exceeds the limit (which may be reinstated every year or is accumulated during the lifetime of your pet), the company will stop paying claims.
Another problem associated with benefit schedules is that they are not always adjusted accordingly along with the increase in the costs of veterinary care. So, even though your veterinary hospital may increase its fees for certain procedures, your coverage does not reflect those changes. The cost of veterinary care varies from region to region in the United States, and not all benefit schedules will take into account that veterinary care will cost more in downtown Chicago than the outskirts of midwest Ohio.
Instead of using a benefit schedule, some pet insurance companies offer to pay up to a certain percentage of your total costs, which can often result in more savings for the owner.
What About Hereditary Conditions?
Purebred dogs and cats are often more susceptible to hereditary and genetic conditions. In fact, more than 500 genetic diseases have been identified in purebred dogs. And over 100 diseases have been identified in mixed breed dogs. Not all pet insurance companies offer coverage for hereditary conditions. This can be an important consideration when comparing different pet insurance companies. You’ll probably pay extra for a policy that covers these conditions but most types of hereditary problems will affect your pet during his entire lifetime. There are not many cures, only management options. For example, if your dog is diagnosed with atopic dermatitis (allergies) at a young age, this is going to be a condition that you and your dog will be dealing with for many years to come. How expensive will the treatment be? Just like any other type of insurance, you might not see a return on your investment but having coverage for hereditary conditions “just in case” could end up saving you a lot of money during the years.
This also underscores the importance of choosing a reputable breeder when it comes time to select your puppy or kitten. There are many reputable breeders who only breed pets that are known not be carriers of certain hereditary conditions. There are DNA tests that can be done as well as certified tests which are performed by veterinary specialists to screen parents for specific conditions that are known to affect the breed. These tests and evaluations cost a lot of money and this cost is often passed onto the people who end up purchasing the puppies or kittens. Yes, you can save money by purchasing your new pet from a pet store, puppy mill, or backyard breeder but you can pretty much guarantee that these pets will also come with more health problems. Is it really worth it?
I always recommend supporting breeders who have the best interest of the breed at heart–not those who breed animals just to make a profit. Certainly there are never any guarantees when it comes to a living, breathing animal, but your chances of acquiring a healthy pet are greatly improved when you take your time finding a reputable breeder and don’t make an impulse decision.
Of course, when you acquire a pet from a shelter or rescue organization there is also the chance that he may not be 100% free of any genetic diseases since in most cases little is known about the parents. However, the volunteers should always be upfront and willing to share with you any health history that they have. But ironically, based on my own personal experiences, the healthiest dogs are those that are mixed breeds that are either strays or come from shelters and rescue groups.
What About Chronic Conditions?
Chances are, if you’re thinking about purchasing pet insurance you’re planning ahead in case your pet develops a chronic condition like diabetes or thyroid disease. However, some pet insurance companies will cover an illness only during the policy period, which normally lasts 12 months. When it comes time to re-new the policy the condition is considered pre-existing and will no longer be covered. According to recent data, more than 40% of all pet insurance claims are for chronic conditions. Therefore, it would be in your best interest to carefully investigate the fine print when it comes to how the company defines and covers chronic conditions from one policy period to the next.
Can You the Customize the Policy?
Some pet insurance companies allow you to adjust your level of deductible and coverage which can leave the insurance paying 100% of treatment costs. This puts the pet owner in control of premium costs and how much reimbursement they receive, not the insurance company.
What Does Your Veterinarian Recommend?
Unfortunately, while the majority of veterinarians recommend pet insurance to clients, very few are knowledgeable about the different companies and types of plans available. Even though your veterinarian may recommend one company over the other, it’s your job to study the different options. A lot of veterinarians like to recommend Veterinary Pet Insurance, but usually that’s the only company they’re familiar with because it’s been around for a long time. Also, some veterinary clinics may be obligated to recommend one company other another. Veterinary clinics that are corporately owned usually have a partnership with one pet insurance company and are not permitted to educate clients about other options.
Also, it may be a good idea to network with other pet owners who have pet insurance plans. You can learn what features of their policy they do and don’t like. Like most other things in life, when it comes to pet insurance you get what you pay for. It definitely is worth your time to research the different companies and ask the right questions before signing on the dotted line.
Despite the fact that there is a long list of pet insurance companies offering policies in the United States you might have noticed that most veterinarians recommend VPI (Veterinary Pet Insurance) whenever their clients ask for a recommendation. This is simply due to the fact that Veterinary Pet Insurance is the oldest and largest health insurance provider for pets in the United States. VPI was founded in 1980 by veterinarian Jack Stephens who later established Pets Best Insurance after he left VPI.