What is Pet Insurance?
Pet insurance is an insurance product purchased to cover unexpected and non-routine veterinary expenses related to the health of your pet. This product is similar to human health insurance: you pay a monthly premium in order to avoid the financial burden of expensive doctor visits and hospital bills. Pet insurance is simply the pet version.
How Does Pet Insurance Work?
After you enroll in a pet insurance plan, you will be required to take your vet to a licensed veterinarian to receive a physical examination. The vet will confirm your pet is in perfect health and identify any pre-existing conditions. There will also be a waiting period once you enroll before claims are covered. Typically this waiting period is 5 days for injuries and 15 days for illnesses. After the vet exam and waiting period are fulfilled, your pet is covered.
Unfortunately many pet insurance companies do not pay for your pet’s unexpected medical expenses up front like some human health insurance policies do. The owner of the pet is expected to pay the full bill at the time of service. Once the bill is paid, the owner immediately files a claim online for reimbursement from the insurance company. Pet insurance companies reimburse the portion of the bill that is agreed upon at enrollment, which is typically 70% -90% depending on the plan.
What Does Pet Insurance Cover?
Pet insurance companies will reimburse you for a portion of the bill for many types of non-routine pet health related expenses. Every insurance company has different policies, however, most reputable insurance companies carry at least the following:
- Illnesses
- Injuries
- Hereditary & Congenital Diseases
- Cancer
- Surgery
- Diagnostic Tests
- Hospital Stays
- Medications
- Accidents/injuries
What Doesn’t Pet Insurance Cover
Coverage will depend on the policy, however, most insurance companies will not reimburse you for the expenses below:
- Annual Physical Exams
- Routine Expenses (Vaccinations, Heartworm Medication, etc.)
- Spaying and Neutering
- Pre-Existing Conditions
- Dental Care
- Euthanasia or Burial
- Property Damage or Personal Liability
Comparing Insurance Companies
Three of the top pet insurance companies are: Trupanion, Healthy Paws, and Pet Plan. In this post, we’ll examine these three popular companies. Pet insurance is an insurance product, so it’s essential to do your research prior to enrolling. If you’d like to learn more about Lemonade, Embrace, Pumpkin, and other pet insurance companies, head over to this post.
While many aspects of Trupanion, Healthy Paws, and Pet Plan policies are very similar, there are two key differences you should notice:
1. Monthly Premiums
Note: these rates are for goldendoodles in Cincinnati, OH. Rates may differ based on location, age, breed, etc. Trupanion, Healthy Paws & Pet Plan will all provide you with an instant free quote on their respective websites.
As you work to establish the perfect policy for your pet, you may have a set monthly budget that you need to work within. Pet Plan gives pet owners the most flexibility in adjusting monthly premium amounts. Pet Plan allows you to choose a deductible, percent of reimbursement, and maximum payout that you feel best suits you and your pet. All Trupanion policies, on the other hand, automatically have an unlimited maximum payout and 90% reimbursement. The deductible is the only part of the plan that can be adjusted to lower monthly premium costs.
When you establish a pet insurance policy, you lock in the rate for that year. You do not, however, lock in the rate for your pet’s lifetime. Each year when you renew your pets policy, the monthly premium may increase. While your pet’s increasing age and moving to a new area do impact the premium change, a new diagnosis or previously filed claims do not. Learn more about how coverage premium changes are calculated in Trupanion’s article. Because pre-existing medical conditions are not covered,it is advantageous to enroll your pet when she is younger before any medical conditions have been identified. This will allow your pet to get the most coverage out of her insurance plan.
2. Per Condition Deductible Vs. Annual Deductible
Healthy Paws and Pet Plan both offer annual policies, which operate like most human insurance policies. All claims filed within a calendar year go towards the deductible. Once the deductible is reached, the insurance company reimburses the policy holder the agreed upon amount (i.e. pays 90% of expenses) for claims filed during the remainder of that calendar year. When the next year begins, the policy holder must again meet the deductible before reimbursement begins. Annual deductibles are best for dogs that are generally healthy and don’t have chronic healthcare needs. If your dog requires medication for an ear infection, has a tooth abscess, and needs stitches in the same calendar year, expenses for all of those go towards the deductible and then, once the deductible is reached, remaining expenses are reimbursed.
Trupanion offers per condition policies. This means that all claims filed for a specific medical condition go towards the deductible for that condition and then, once the deductible is met, all future expenses for that specific condition are reimbursed for the remainder of the dog’s life. This type of policy is best for dogs that have a chronic medical condition. The owner of a dog who develops diabetes, for instance, may appreciate only having to pay $250 towards insulin one time and then being reimbursed for all diabetes related expenses the rest of the dog’s life. If your dog requires medication for an ear infection, has a tooth abscess, and needs stitches in the same calendar year, you must pay for all of those medical needs out of pocket and none of those expenses contribute towards a deductible since they are all one time conditions.
Trupanion’s “per condition” policy is pretty self explanatory when it comes to a chronic medical condition, but how does “per condition” work in relation to an accident? All injuries related to a specific accident are considered the same condition. If your dog is attacked at a dog park and requires wound care, stitches, a topical antibiotic, an oral antibiotic, and follow up appointments, all of that care is considered one condition and falls under a single deductible. If you dog is later attacked at a dog park a second time, that new incident is a new condition (even if both injuries happen in the same calendar year).
Which Insurance Company Has the Best Policy?
Just as there are many auto insurance carriers and many homeowners insurance carriers, there are also many pet insurance carriers. The best insurance company for an individual will depend on a variety of factors and will probably not be the same for every pet. There are a number of subtle differences between carriers that will benefit different individuals. All of the pet insurance companies I researched have a comparison page on their website showing how they distinguish themselves from the competition. I found this information to be very helpful. Anyone looking to purchase pet insurance should get quotes from multiple companies and dig down into the policy and declarations to determine which policy is the best for their needs and the needs of their pet.
Because pre-existing conditions are not covered by insurance, pet owners are required to do a bit of guess work. An annual deductible might be best for a dog who is at risk for an injury while a per condition policy might be best for a dog at risk for chronic medication conditions. As you work through scenarios to determine which type of policy is best for your pet, ask yourself questions such as:
- Should I paying for a DNA test? With a simple, painless cheek swab done at home, Embark screens your dog for 165 different diseases to let you know what your dog is at risk for developing. Embark can be purchased through Amazon or directly through Embark’s website. (Unfortunately, insurance companies do not offer a discount for health tested dogs.) Save $20 on Embark’s website with the code winter20
- What health problems are common for your dog’s particular breed(s)? The Orthopedic Foundation for Animals regularly publishes disease statistics for each breed, which helps you learn the medical conditions for which your dog is most at risk. If you’re not sure what breeds are in your dog’s ancestry, Embark’s test will identify them for you.
- If you purchased your dog from a breeder, did your dog’s parents receive health testing? Do either of your dog’s parents have health problems? What about any of your dog’s siblings?
- What preventative measures have you taken to help enure your dog’s health (i.e. dogs who regularly receive heart worm preventative are a lower risk for acquiring heart worms, overweight dogs are at increased risk for joint problems, girls spayed before the third heat are at a decrease the risk of mammary cancer, etc.)?
- Does your dog have any personality traits that might put her at higher risk for an injury (i.e. aggression towards other dogs, a tendency to run away, an inclination towards chasing cars, etc.)?
- Does your dog accompany you on any activities that might be her at a higher risk for an injury (i.e. running through the woods, jumping from a boat, hiking over rough terrain, etc.)?
A Closer Look At The Top Three
Let’s look at a few of the key differences and then walk through an emergency scenario to see what coverage actually looks like with each insurance company.
Healthy Paws
Healthy Paws seems to have the highest customer ratings out of the insurance companies we looked at. Customers appreciate that 99% of claims get processed within 2 business days of filing. Another benefit of Healthy Paws is their adjustable reimbursement rate to fit your budget. One disadvantage of Healthy Paws is they do not cover hip dysplasia on dogs who begin enrollment after six years of age.
Pet Plan
Pet Plan is another great provider. Pet plan policies cover dental diseases and exam fees, unlike Healthy Paws & Trupanion. Plus there’s no upper age limit, so geriatric pets are welcome to enroll. Pet Plan also offers variable reimbursement rate and deductible options for maximum flexibility in monthly premiums. Pet Plan policies do cover alternative treatments and medical specialist costs unlike some other insurance companies.
Trupanion
As breeders, it is advantageous for us to have our puppies insured with Trupanion because we can receive information about claims filed by the owners of the pets we breed. We can then use that information to improve our breeding program and the health of our future puppies. Trupanion also will pay some veterinary hospitals directly preventing owners from having to front the money for costly visits. Trupanion has a deductible per condition, unlike the annual deductibles of Health Paws & Pet Plan.
How Much Does Emergency Medical Care Cost?
It’s difficult to determine whether pet insurance is a economical decision without considering the cost of emergency veterinary care. Emergency care varies from case to case and medical care prices differ based on location. Even so, an example scenario is tremendously helpful. We’ll compare a $250 deductible with 90% reimbursement with all three companies for this scenario:
Emergency Stitches Scenario
Your dog cuts her paw on a piece of broken glass. It’s a deep cut, and you’re fairly certain she needs stitches so you head over to the Care Center, an emergency and critical care pet hospital. This particular facility charges $100 exam fee for seeing your pet. Additional fees are then charged based on your pet’s needs for that particular illness or injury. A simple laceration costs an additional $500-$700. (More extensive services cost more.)
Pet Plan
Pet Plan’s policy coverage kicks in beginning the exam fee. You pay the first $250 to reach your deductible and then Pet Plan begins reimbursing you for 90% of all additional expenses. The $600 trip to the emergency vet cost you $315 out of pocket ($250 + 10% of the remaining $350). Your pup’s deductible has been met for the calendar year, so you only pay 10% of any additional disease or injury related health care for your pet for the remainder of the calendar year.
Healthy Paws
While Pet Plan’s policy covers the exam fee Healthy Paws policies do not. In our scenario you are stuck paying the $100 exam fee. Once you pay the $250 deductible, your Healthy Paws policy kicks in and reimburses you for 90% of the remaining expenses. Your $600 trip to the emergency vet cost you $375 out of pocket ($100 exam fee + $250 deductible + 10% of the remaining $250). The good news: your pup’s deductible has been met for the year, so for the rest of the calendar year you only pay 10% of any additional disease or injury related health care for your pet.
Trupanion
Like Healthy Paws, Trupanion does not cover exam fees. In our scenario you are stuck paying the $100 exam fee. You must then pay the $250 deductible, and finally your Trupanion policy will begin reimbursing you for 90% of the remaining expenses. Your $600 trip to the emergency vet cost you $375 out of pocket ($100 exam fee + $250 deductible + 10% of the remaining $250). Trupanion has a “per condition” deductible, so the $250 deductible you met only applies to this injury. If your pup requires additional trips to the vet for wound care or bandage changes, those visits are covered under the same condition (you are still responsible for exam fees those). If you dog has additional disease or injury related health care needs in the upcoming year, you must again reach that $250 deductible for each of those separately.
Can Dogs That Aren’t Fixed Be Insured?
Yes! Pet Plan is happy to enroll breeding pets under their standard policy. A dog must be enrolled prior to becoming pregnancy for an emergency c-section to be covered. Trupanion will not cover breeding pets under the standard policy but does offer a breeding pet policy. Under this policy, emergency c-sections are covered. The dog MUST be classified as a “breeding pet” at the time of enrollment, and the policy does NOT cover a scheduled c-section or c-sections for a dog who has previously undergone a c-section prior to enrolling. Routine pregnancy care is not covered under Pet Plan or Trupanion’s policies.
The Bottom Line
Choosing a pet insurance company can be a very difficult decision to make. Unfortunately, like any type of insurance, attention to detail is critical to ensuring you maintain the appropriate policy for your pet. Thankfully every insurance provider I researched had an abundance of information on their websites including company comparisons and sample policies to view. Obtain a free quote from several providers and compare. As you consider what coverage to carry, ask yourself the suggested questions above and imagine a few example scenarios where you would utilize the insurance. Then compare the policy benefits and costs of multiple companies.
Timberidge Goldendoodles does receive commissions from insurance sales originating from this article. Consider using the links provided above to investigate insurance companies and enroll in dog insurance if you’ve found this information to be helpful and suitable to your needs. Thank you for your support!