Pet owners often talk about veterinary bills, and for good reason; seldom is emergency care inexpensive.
As veterinary care adds human-grade advances, costs have increased. If you’ve had a vet bill recently, you’ve probably wondered, “Should I look into pet insurance?”
Pet insurance has been around in the United States since 1980, according to the National Association of Insurance Commissioners. While it looks like human health insurance, it’s regulated like property and casualty coverage. The price you pay will be based on your location, and your pet’s species, gender, and age. The good news for consumers is the U.S. market has been growing by 10% or more a year for the last few years. That means more choice and competition.
With that much consistent growth, pet insurance has gone mainstream. Like human insurance, it helps cover costs such as surgeries and medication. Often there’s a wellness plan to help pay for checkups and vaccinations. And like human insurance, most plans have deductibles and copays.
Interestingly, most pet owners greatly overestimate what pet insurance really costs. A recent Forbes survey found that 76% of dog owners overestimated the price by THREE times. The actual average cost, the survey found, was $48 a month for a dog and $28 a month for a cat.
As a pet parent, you know pets get into things they shouldn’t. Intestinal obstruction is a common pet insurance claim. What would your costs be if your dog ate a sock? (Or your cat took a bite of your yoga mat?)
The following figures are from CareCredit, a company that helps finance vet bills:
A word about the cost range, because it depends on what’s happening with your pet, if it’s perforated the gut, and where the foreign body gets stuck—an esophagus blockage will be different than a small intestine. It also depends on where you live, the cost of veterinary care in your area, and if it can be done locally versus at a specialized hospital like a university.
Intestinal surgery is on the top end. But other types of surgery rival human health care costs, too:
Most of these figures are multiples of $600. You could save up for surgery and avoid paying a premium. But there’s no HSA or FSA advantages like your own health insurance. And you risk not having enough in your account the day your dog stops eating (or looks at you with a big red bulge on the corner of his eye).
Buying insurance can be the right choice, if only for the peace of mind it provides. You have access to Mercer Indigo, which helps you shop, plus makes it easy to understand what you’re buying.