Is pet insurance a good idea for you?

Every six seconds, a pet owner is faced with a veterinary bill of more than $1,000.

What's a pet worth? Trip to vet gets costly

So says Petplan, a veterinary pet insurance company that offers health-care coverage for cats and dogs. It’s one of many providers making inroads in the U.S. pet health market.

Insurance for pets, long established in Great Britain, is relatively under-utilized here, says Michael Hemstreet, a Colorado Web developer and pet owner who runs Pet Insurance Review, an online forum for provider reviews and comparisons.

“It’s kind of a new concept in the U.S., at least in pet owners’ minds,” says Hemstreet. “Five or 10 years ago, I don’t think anyone would have cared about it. But I spend about an hour a day answering e-mails and phone calls from people who are interested in it.”

Sixty-three percent of U.S. households own a pet, according to the American Pet Product Manufacturers Association. But just 3 percent of dog owners and 1 percent of cat owners carry insurance on their pets, the association estimates.

Pet insurance typically covers accidents, injuries and illnesses. Routine treatments such as vaccinations, flea control and teeth cleaning can often be added onto a plan for additional cost. It’s primarily for cats and dogs, but at least one company, VPI, the nation’s oldest pet insurance provider, covers pets from chameleons, goats and hedgehogs to pot belly pigs, rabbits and tortoises.

Hemstreet says pet insurance is something more pet owners are considering as veterinary care becomes more advanced — and more expensive.

“What’s happened in the last few years is that the type of help a vet can provide has really expanded,” he says. “They’re able to do things that you wouldn’t have dreamed of 20 years ago.”

Take a drive by Gilbert’s Arizona Veterinary Specialists, a 24-hour-a-day, 365-day-a-year animal hospital, and you’ll see what Hemstreet’s talking about. A parking lot directory points pet owners to dentistry, dermatology, ophthalmology, surgery, oncology, radiology and internal medicine departments.

In a world where man’s best friend can undergo CT scans, MRIs, chemotherapy and pacemaker surgery — rather than simply go home to live out whatever is left of his life — pet owners must decide where to draw the financial line.

“With pet health insurance, you don’t have to sit there thinking about ‘Oh my God, how am I going to afford it?’ while the veterinarian is telling you your pet is in grave condition. You just say, ‘Let’s do it,’” says Alex Krooglik with Cleveland-based Embrace Pet Insurance.

The insurance, which is a type of property insurance, works differently from human health insurance. Most plans require pet owners to pay their vet bills upfront, then submit a claim for reimbursement. Typically, you can go to any veterinarian or animal hospital you wish.

Policies have deductibles, maximum limits and co-pays. Monthly premiums can vary widely depending on the level of coverage you choose and the age, breed and physical condition of your pet. Pre-existing conditions are usually not covered. Premiums range from about $15 to $60 per month.

Mesa veterinarian Wendy Holst doesn’t see a lot of patients with insurance at her 10-year-old practice, and she says it’s not worthwhile for every client.

“It helps some people out,” she says. “Think of it this way: If you only want a rabies shot every three years because that’s what’s required by the county, it’s probably not a good investment for you. But if you’re a pet owner who never misses a routine appointment, if you think of your pets as family members, then, yes, it will probably save you some money.”

Compare providers

Interested in finding out which, if any, pet insurance plan is right for you? The independent Pet Insurance Review lets you read reviews of pet insurance companies from hundreds of current policy owners, compare rates and coverage, and solicit quotes from multiple providers. It also provides telephone numbers and Web site links for major pet insurance providers in the United States. Check it out at www.petinsurancereview.com.

Things to consider before you enroll

"The best time to purchase pet insurance is before your pet gets sick," says Mike Hemstreet of Pet Insurance Review. If you wait until injury or illness strikes, he says, whatever's wrong will likely qualify as a pre-existing condition and won't be covered.

Decide what you want covered: just the unexpected accidents, illnesses and injuries that may come up, or all of that plus routine procedures such as dental cleanings, heartworm tests and vaccinations? Many providers will add routine care coverage to your policy for an additional fee.

Review the deductibles, co-pays and caps on coverage. Do you pay $200 deductible and get $5,000 worth of coverage? Is your per-visit co-pay 10 percent or 20 percent? "Think of it as a big birthday cake," says Alex Krooglik with Embrace Pet Insurance. "You're deciding how much cake you want to eat and how much cake you want us to eat."

Look for a provider that covers breed-specific conditions. Your dachsund puppy may never develop intervertebral disk disease (ruptured or herniated spinal disks that dachsunds are prone to) but if he does, it will become a chronic expense.

Check to see if the insurer excludes or charges a higher premium for your breed.

Review age limits for coverage, and find out if premiums increase as the pet ages.

If you insure more than one pet, ask for a multiple-pet discount. Inquire about discounts for microchipped pets or enrolling online.

Insurance alternative

Big names in pets, from the ASPCA to the Humane Society of the United States and American Kennel Club, are getting in on the pet insurance market, but one Arizona company offers an alternative to insurance.

United Pet Care, founded in 1996 by former medical and dental industry marketing director Doris Amdur, works like a discount club for vet care. Members pay a monthly fee of about $11 per pet in exchange for discounts and deals on preventative, diagnostic, surgical and emergency care and in-office medications. There are no deductibles, claim forms or annual maximum dollar limits, but the program is offered only at select veterinarians throughout the East Valley. Programs are available for birds, cats, dogs, horses, rabbits, reptiles and ferrets.

For information and a list of participating clinics, call (602) 266-5303 or visit www.unitedpetcare.com.