Pet insurance and deductibles
If you’ve ever had human health insurance or car insurance, you most likely know what a deductible is. Well, pet insurance typically has deductibles as well.
However, the type can vary quite dramatically. Pet insurance can have annual deductibles, per incident deductibles, per illness category deductibles, or per condition deductibles.
But what does it all mean?! And how do you know which is best for you?
Let’s start by briefly explaining what each type is.
Annual deductible: Pretty self explanatory, each policy year you are required to satisfy a given dollar amount before the insurance company will pay out anything.
Per incident deductible: Every time you have to take your pet in to see the veterinarian you are required to satisfy a given dollar amount before the insurance company will pay out anything.
Per illness category deductible: This one is a little more tricky. Some companies can break conditions down by illness category. For example, all conditions related to the respiratory system, or the skin would only have one deductible.
Per condition deductible: This is somewhat different than a per incident deductible in that you only have to satisfy one deductible per condition. Say, for example, your pet develops diabetes at age 4 and you are bringing him or her in to the veterinarian to get meds every few months. You would only have to satisfy the deductible once in the pet’s lifetime.
Which one would be best for you? Well, I can’t answer that. But what you should be aware of is that different companies may offer different deductible amounts.
Some important questions to consider might be: how does changing the deductible change the premium? Can you change the deductible after the fact?
Trupanion offers a sliding per condition deductible, where the pet owner can select any deductible from $0 to $1000. This allows pet owners to tailor their monthly premiums to fit their budget. You can get a pet insurance quote and see how the sliding deductible tool works.
Having been a paralegal working on insurance issues for over 35 years AND a pet guardian (dogs and horses) I have yet to see a pet insurance company that is worth the premium. Why do I say this? Because vets want their money NOW NO IFS AND OR BUTS ABOUT IT. NOW NOW NOW. Upfront. Preferably in cash because they don’t want to pay the credit card merchant discount. This is especially true of emergency vets many of whom you cannot establish a “relationship” with beforehand because hopefully your dog hasn’t been in an emergency situation before. Vets want the money at the time of service or in the case of emergency clinics UP FRONT NOW IN CASH. No insurance plan for pets that I have seen will help the pet guardian faced with a life threatening emergency for their beloved four-footed one and the vet’s staff is DEMANDING MONEY NOW NOW NOW in cash UP FRONT. All you need to do is read the many group and forum posts on this topic to realize that the majority of working americans simply do not have the ability to front thousands for emergencies ON THE SPOT NOW NOW NOW and are having to have their pets euthanized because they can’t wait while the insurance companies play shuffleboard with their claims and “adjusting” said claims to zero.
Hi Miss Jan,
Thanks for your comment. You seem to be pretty against pet insurance, which is of course fine, everyone is title to their own opinion. However, in this blog I’m trying to open up opinions based on actual experience. Have you personally had pet insurance for your pets? If so, can you please share those experiences?
You are right, veterinarians do want their money up front and they would rather do that than set up a system similar to an HMO.
Also, per your comment, how do you think that pet insurance companies could make it easier for pet owners?
Hi Melissa,
We have our Pet Insurance through Go Pet Plan. The one area I think Pet Insurance companies could make things easier for pet owners is to conduct claim payment more like an extended car warranty program. For example, we purchased an extended warranty for one of our vehicles (this is essentially an insurance policy) and when something went wrong we took it to the repair shop. The pre-approved repair shop contacted the warranty company and pre-authorized the work (I believe the warranty company gave them a credit card to place the charges on) and told them the amount we were responsible for. This worked great.
In the case of emergency veterinary care many times the Vet will prepare an estimate to provide the care required. I think it would be easy to work it out so the Vet contacted the Pet Insurance Comapny claim services with the diagnosis, etc and pre-authorized the charges, etc provided the policy holder took care of the deductible and their percentage (in our case we carry the 80% policy.) I think this would be a great way to build confidence in your product, help the dog owner in a very difficult situation and quickly pay the claim without a bunch of administration and run around. I think the biggest problem pet insurance companies face in the U.S. is they are not trusted because early on so many people got ripped off by companies who just didn’t want to pay claims.
I’d welcome the opportunity to discuss this more with representatives from Go Pet Plan.
Thanks!
I’d also add that most people could “charge” the cost of the emergency care but again, this involves a certain amount of trust in the insurance company and goes back to the many years of places like VPI denying claim after claim and making it very difficult for policy holders to ever get any kind of payout on their claims.
I just went to Go Pet Plan and did an online quote. My dog is 9 years old. They declined me. Enrollment must be when they are pups for the insurance to continue to senior dogs. Otherwise they will consider enrollment if the dog is not older than 7 years. Insurance companies are the biggest rip off. They are only in it for the money. If you don’t believe me… take your blinders off.
Why did you get a quote then?
please get w/me so i can get a quote!
Having worked as a vet tech for seven years now, I have had experience with many pet insurance companies. I have seen the lives os many pets saved by pet insurance.
I know that paying up front is a hardship, and an ugly detail
that seems inconsequential when your beloved pet is in trouble,
but the fact remains: drugs cost money, tests cost money, and veterinary
staff don’t work for free. The emergency clinic I work for tried to institute
a “care for everyone” policy a couple of years ago. We turned nobody away.
If you didn’t have the money for our highest standard of care, we would treat
your pet with the minimum treatments the doctors deemed necessary. If you
couldn’t afford to fix the broken leg with surgery, we would splint your pet and
give him pain meds at no cost/ whatever you could afford. Before long word got outk
And every hospital in the area was sending us their saddest cases. The money ran out. We simply couldn’t
Afford to continue giving free care to people who pulled up in a Lexus and declined
Our estimates. The company was sold to a corporation because we ran it into the ground
Trying to do the right thing. People say all the time “all you care abokut is your money, don’t you love
Animals? Yes. We do. But we also love our homes, our families, and feeding ourselves.
IWe have tried payment plans in each of the four practices I have worked in. Inevitably
we get ripped off by clients who fail to pay as agreed. These folks ruin it for everyone e.
Pet insurance can be tricky and thorny, and difficult to deal with, but they can also help people save their pets. I advise all new pet owners to investigate
Even if they don’t think they want it. When the day comes where your pet is in trouble, at least you’ll know you did the research.
For these who don’t know how to afford their vet bills on the spot I recommend care credit.
It’s a medical credit card with several interest-free options. It can save your pet’s life.
Hello –
I had VPI insurance for my dog and the experience was wonderful. True, pet insurance requires you pay up front and get reimbursed, but I would put the bill on the credit card and pay it immediately upon receipt of the check from VPI. I received a check in less than two weeks.
My dog had repeating ear infections, was attacked by a pit bull, and had seizures. VPI paid out on all of these claims reimbursing me in excess of $700. I had no problems at all with their claims reps. They were all helpful and kind.
Also, if I didn’t have money available on a credit card, I found that family members were more likely to loan it to me since I would be reimbursed so soon. Or, if I had to, I could do the Care Credit and pay it off as soon as I received my check.
It seems like a lot – about $240 a year – but it absolutely paid for itself and I never wanted to be in the position where I had to choose between money and putting my dog down.
I have pet insurance thru Pets Best on all my dogs ranging from age 6 to 12. I got insurance on my 12 year old when he was 10. I am extremely happy with Pets Best. Their forms are easy to fill out and submit and they pay very quickly. My oldest dog had a cancer scare last year that cost $6,000. After my $75 deductible, they paid 80%! I was beyond thrilled. Unlike other companies (like VPI), Pets Best does not have set prices on procedures. They pay 80% of whatever your vet charges. Like all insurance companies, they have restrictions ( like congenital problems) so you have to do your homework.
I would love to have pet insurance for my three cats but trying to live on a disability retirement in this economy is very tough.As it is my ends haven’t met in a long time.I know if one of my cats needed medical attention I don’t know what I would do.Some small IQ’S have said maybe I shouldn’t have any pets then just worry about myself.I witnessed these cats being born three years ago after rescuing the mother from being dropped off by someone.Perhaps because she was pregnant. So I have no intention of getting rid of them.I had to give up four for adoption which broke my heart so the other two and momma are staying..
I have AKC insurance . After 6 surgerys in one year having a pure breed English bulldog,even the vet calls my dog the poster dog for having insurance.we all know we have to pay upfrount but having a good realationship with your vet they may work with you on that payment. AKC has been a god sent to my dogs proper health care,as well as my vet.
I dislike pet insurance and I really can’t afford it if it does not pay claims well.
I have also been in the position of having to take a dog to an emergency clinic and forced to pay large sums of money that I couldn’t begin to come up with right there on the spot. Thankfully, I found a vet in my area that does not send all his emergency and after hours calls to the emergency vet so I know have a way to have my pets taken care of without that worry. He does not send his clients to the emergency vet because he even feels that what they charge is highway robbery.
What I would like to see in pet insurance is a program that functions like Rocky Mountain Health Plans in Colorado for humans. Nothing comes out of your pocket initially at the doctors office. The doctor bills RMHP and they pay the claim and bill you for the remaining costs. You make payments on th remaining amount to them. That way, if you had pet insurance that operated like this you would be able to get your pet taken care of and be able to make payments on the bill.
Personally, I am forced by my employer to purchase their health insurance and I really can’t afford it so I really cannot afford to purchase health insurance for my dogs. I basically live with the reality that if something really serious happens, I’ll probably lose that dog.:(
Wow this thread has gotten quite busy overnight! Thank you all for jumping in here!
Josh, what you’re suggesting sounds a lot to me like it was start turning into human health care. One thing that we’ve come to realize is that vets absolutely DO NOT want to have to join networks, and their biggest fear is being told what they can and can’t charge their own clients. Most are happy to sign claim forms and submit necessary paperwork, but when it comes to the money they really want nothing to do with it. However, one thing that Trupanion has started doing with our Canadian brand, Vetinsurance, is allowing veterinary clinics to set up automatic payments into their own accounts. That way, the pet owner doesn’t have to pay upfront.
I do agree with you that it seems that many veterinarians are having a hard time recommending pet insurance companies in general because such a bad taste was put in their mouth early on. But, in the past 5-10 years, a bunch of new players have entered the arena which, as you can imagine, stiffens competition and is always in the customers’ best interests.
Teresa you can visit any pet insurance company’s website and get a free quote. To learn more about what other pet owners are saying about their experiences, and to get contact information, I recommend visiting http://www.petinsurancerevieiw.com.
Shelby, thank you so much for bringing in a different perspective. You bring up an interesting point, and one that I’ve actually heard quite a bit: instead of getting pet insurance find a good veterinarian. Well, as you mention, veterinarians still have a business to run and no matter how “good” they are, things (such as drugs, etc.) still cost money. Some people argue that it’s better to set up a payment plan with their vet as opposed to paying for pet insurance, but as you also mention, this doesn’t always work out either. In that case, it just puts the vet and the clinic in a very awkward situation.
Noreen and Melissa H, I’m very happy to hear that you are both having success with pet insurance! It’s always great to know and hear that our industry is getting better and better.
Jeff B, what I might suggest to you in your situation is to look for a plan that has a high deductible. These plans typically have the same coverage, but cost you much less per month. Many companies are now offering deductibles up to $1,000 just in case anything major happens.
I agree that the competition is cleaning things up! I don’t know that I’m looking for human healthcare and I’m not saying that I don’t agree with the way things are now but my nature is to always look for ways to improve something. I am very impressed with Trupanion and how they are going about learning what consumers want and need for their pets. I’m looking forward to Trupanion being offered in Wisconsin. When we evaluated pet insurance carriers a few months ago Go PetPlan seemed to be the best out there but after reading your policy materials and seeing how obviously committed your company and CEO seems to be in providing the best policy out there I can’t wait to switch!
S. Davis: and then what does the Doctor do when people stop making their payments? You basically want to shift your financial responsibility to your Veterinarian and I don’t agree with that. I would never expect our Veterinarian to front thousands of dollars for me. In my experience most Vets aren’t making loads of money but they love their job and helping animals and they make enough to provide a comfortable life for themselves and their family.
Like all insurance it only comes in handy when you actually NEED it, otherwise it’s just your money paying for peace of mind just in case. I checked out Pets Best, for my two small breed dogs, I would be paying $55 a month for peace of mind or $660 a year when the avg. cost of my vet visit is $125 a year for two dogs. That is updated shots and heart worm meds (which seem to be a scam unless you live in a mosquito infested swamp). VPI was $60 a month…I don’t even pay that much for my own health insurance and I have a PPO plan that covers just about everything!
Pets have evolved over time to their current status as “family” members so I can see why Pet insurance has become so popular.
I have had insurance for one of my dogs for 5 years and the other for 2. In both cases the cost of my vet bills and reimbursements exceeded the cost of my premiums. Yes, in many cases I have been disappointed in the percentage paid but it is something. The companion I lost a little over two years ago succumbed to cancer after a valiant 1 year battle. The out-of-pocket expenses for her care exceeded $15,000! I would do that and more if I could have kept her longer. Needless to say, I did not have insurance for her. Fortunately, I was in a position to be able to pay those bills without totally bankrupting the family which I could not do now given the economy. I will NEVER be without insurance again which includes a cancer rider since cancer is so prevalent. Our family considers our companion animals to be members of our family not just PETS so why wouldn’t we get them covered?
Josh, thanks for the comments! And I appreciate all the feedback. That’s why we’ve opened up this blog so we can hear about gripes and concerns so that we can continually enhance our product.
Michelle, I’m sorry to hear about your loss. As you mention, losing a pet these days is like losing a best friend or family member
I also thank you for sharing your story, because many people still don’t realize how expensive veterinary care can get! $15,000 my goodness!
I had insurance for 4 yrs and never used it and finally cancelled it. My dog got very sick and I spent about 15 thousand. He now has been going thru cancer another 5 thousand so far. Wish I had never cancelled!!! Love our babies!!!
oh no! thanks for jumping in here, however, and sharing your story. These stories are always good to share with other pet owners so that they hopefully learn from your mistake
Wow, there are some sad stories here which make me thankful that I do have pet insurance on my babies. My husband and I initially got VPI as it was recommended by our vet. Our vet later felt bad for making that recommendation as VPI did not cover ANYTHING, not even common problems such as cherry eye. It also did not cover luxating patella my dog had a bad problem with and went through a few surgeries, the last one through a specialist in a neighboring stat costing thousands of dollars. We ditched VPI and went with Pet Plan because I believe it’s recommended by the ASPCA (I hope I’m right on that). So far we haven’t received any money from Pet Plan but did get some paper from them saying money went towards our deductible when our puppy had a leg issue and had to get x-rays, medication, etc. I’ll have to look into how the deducible works. This is a very good article.
I would NOT recommend VPI to anyone and was surprised to hear of someone’s positive review of VPI above. Overall, I would say Pet Plan has been better to work with. VPI would always say that they didn’t cover that coded procedure, even though the procedure my vet did was the SAME issue just coded slightly different. That was just VPI being dishonest if you ask me.
Sissy, I’m so happy to hear that you’ve found a company that is working out for you! Please keep us posted on how things go with your deductible and further claims:)
This is very helpful. I recently spent $350 getting my two cats annual check up and shots. I had let the FIV vaccination expire and as a result they had to be tested again and have the three part shot. That costs some money. I have noted a couple of insurance companies and plan on checking them out.