Would you spend $20 or $30 a month for pet insurance? Yes, you read that right. There is health insurance for pets. Sales of pet insurance in the U.S. topped $160 million in 2005, up nearly 25 percent from $129 million in 2004, according to Packaged Facts, the publishing division of MarketResearch.com.
Pet insurance covers the veterinary expenses of primarily cats and dogs, although coverage is available for other animals such as birds, reptiles and certain exotic pets.
We are a nation that spends on our pets. Sixty-three percent of U.S. households own a pet, and last year they spent an estimated $38.4 billion on them, reports the American Pet Product Manufacturers Association. Of that, about $9.4 billion was for veterinary care.
Still, only 3 percent of dog owners carry insurance on their animals, says the APPMA. Even fewer cat owners have pet insurance, just 1 percent.
For a while, Jen Popovic, a District of Columbia resident, had health insurance for her two cats, Toby and Maddie, and her dog, Sadie, a German shepherd mixed breed.
Popovic said she kept the insurance on her cats for about four years, paying about $20 a month for coverage on both, until they each died. Both were covered by Veterinary Pet Insurance, the nation’s oldest and largest pet insurance provider.
She used the policy for a major surgery for Toby, who swallowed a red string he pulled from one of her dresses. His surgery cost nearly $1,500. VPI paid about 40 percent of that vet bill.
She used Maddie’s policy for the removal of a cancerous tumor in her leg. That surgery cost almost $1,600, of which VPI covered about 45 percent, she said. In Popovic’s case, the insurance did save her some money. Typically pet insurance reimburses from 80 percent to 100 percent of a covered expense. However, there are maximum limits per health incident.
The range of coverage can vary widely by provider and the type of plan you choose. Plans can cover many different medical treatments, routine visits, vaccinations, flea control and teeth cleaning. You can even get a policy that will compensate you for the death of your pet, Packaged Facts found.
Pet insurance, which is considered property insurance and is state regulated, doesn’t work quite like health insurance for people. You have to pay the vet bill first and then you’re reimbursed. But like our health insurance, there is usually a deductible.
Monthly premiums, which vary according to a pet’s species, age and health condition can run as high as $50 to $60 but are generally in the $20 to $30 range for policies that cover preventive care, accidents and treatment of an illness, according to Packaged Facts.
Contact Michelle Singletary at singletarym@washpost.com or c/o The Washington Post, 1150 15th St. NW, Washington, DC 20071.
