How to Compare Pet Insurance
Compare Pet Insurance Policies
We'll begin to compare pet insurance policies by looking at the types of policies available. Later, we'll delve into comparing the plans themselves.If you work for a company that offers health care benefits, it may have been awhile since you've looked at insurance plans with an eye to making comparisons. If you're like most people, you took the coverage your company offers. In most cases, it's a better deal than you could find on your own.
So, if you're feeling a little lost about where to begin to compare pet insurance, you've come to the right place. We'll walk through this step-by-step. And, when we're done, you'll know what to look for as well as what to look out for.
Step 1: Decide on the Type of Policy
Broadly, there are three types of pet insurance policies on the market today. Most companies offer options that include at least two of these and sometimes all three. They are:- Accident Only
- Comprehensive
- Wellness
Note that some companies consider Wellness an add-on to an existing Accident or Comprehensive policy and will not sell it separately.
Accident Only is exactly what it says. You are only covered for the treatment of injuries that are the result of an accident. And, what you might consider an accident and what the insurance company thinks is an accident could be two different things.
For example, let's say your puppy manages to ingest the better part of a 6 foot leash. This actually happened with one of my own. Was it an accident? I, of course, maintain it is. But, the insurance may or may not agree with me.
While Accident Only is usually the least expensive in terms of monthly premiums, it covers a very narrow range of incidents. You are, in fact, not covered for the things you are most likely to need pet insurance for! That coverage comes in with the next category.
Comprehensive is also pretty much like it sounds. It's also referred to as Accident, Injury and Illness coverage. Don't take comprehensive to mean that absolutely everything is covered. It's not. Each company has its own exclusions, payout policies and maxium benefits. (More on that when we get ready to compare pet insurance plans.)
Comprehensive coverage is intended to ease the financial burden of those unexpected yet relatively frequent occurences when something goes wrong with your pet.
In the leash-swallowing example above, ingestion of a foreign body is covered by most comprehensive policies. Surgery, if it's required, can easily cost between $2000 - $3500. Depending on the coverage you chose, you could expect your insurance company to reimburse you for the better part of the cost.
If you are going to have pet insurance, in my opinion, you need this type of coverage. But, Comprehensive still doesn't cover the routine veterinary care you need to keep your pet healthy. For that, we look to the next category--Wellness.
Wellness coverage picks up where Comprehensive leaves off. It helps pick up the cost of things like routine exams, vaccinations, heartworm testing/prevention, spay/neuter, routine diagnostics and annual dental cleaning. In other words, things that need to be done to keep your pet healthy.
The Bottom Line?
So, what's the bottom line? I'll get right to the point. When I compare pet insurance policy types, I believe that most pet owners should opt for Comprehensive coverage. Period. I say "most pet owners" because everyone's situation is a little different.Are there times when it makes sense to consider Accident Only or Wellness policies? Yes, there are.
Consider Accident Only if you simply cannot afford Comprehensive. Your coverage will be limited. It's a situation of you're getting what you're paying for. And, since you aren't paying much there are many things that won't be covered. On the other hand, if your pet does have a covered incident--you will thank your lucky stars you had this when you needed it.
If you would find it helpful to spread out the annual cost of routine care in the form of a monthly insurance premium, consider Wellness coverage. You won't save money this way. In fact, most financial experts will tell you you'll end up paying a little more than you would had you paid out of pocket at the time of service.
Admittedly, the cost of some routine care is getting mighty expensive these days. So, if you find yourself putting off dental cleanings or spay/neuter surgery for that reason, then consider a Wellness policy. Ultimately, anything that helps you be more diligent about your pet's health is a good thing.
