Is Pet Insurance Really Worth It?

Should you get pet insurance for your dog?  It’s a good question.  Full disclosure: I’ve never had a pet insurance policy myself.  But in researching this topic I uncovered some interesting information that gave me an understanding of where it might be beneficial.  Please note this is a research/opinion piece and does not constitute advice on insurance or medical options.

If you are looking for an independent comparison between pet insurance companies, it can be hard to find, as often the author is an affiliate of one or more options.  We can’t offer that either as we have partnered with KNOSE pet insurance and if you click here, or the link at the bottom of this post you can get your first two months free on your policy.

What is Pet Insurance?

Let’s explore what pet insurance is, and what it is used for.  Pet insurance for dogs involves paying a monthly premium in exchange for a range of reimbursements in relation to veterinary care, both routine and emergency depending on your policy.  Coverage starts around 6 weeks, and from what I can find cuts off at 9 years of age for new customers.  If you are an existing customer you can usually keep renewing after 9 years.  A quick search of the internet shows that everyone and‘their dog’ (and their supermarket!) offers pet insurance, so there is no shortage of options.  

What is covered?

Pet Insurance for dogs generally covers accidents, illnesses, injuries, and essential euthanasia. It also includes optional extras like dental illness, behavioural conditions, and specialised therapies. The core coverage can include prescription medications for covered conditions, and extends to a portion of the cost of necessary veterinary treatment, which may include hospitalisation, surgery, x-rays, and diagnostic tests. 

Here’s a more detailed breakdown:

Accidents:

Accidents like fractures, injuries, and poisonings, as long as they occur after the exclusion period and aren’t pre-existing.

Illnesses:

Generally covers most illnesses, again excluding pre-existing conditions and those that occur during the exclusion period.

Optional Extras:

• Dental Illness: You can add coverage for dental issues like gum disease or broken teeth for most insurers.
• Behavioural Conditions: Coverage for issues like separation anxiety or aggression can be added apparently, but I’d guess this is for veterinarian related expenses rather than training.
• You can include coverage for therapies like physiotherapy, hydrotherapy, or acupuncture. 

Exclusions:

• Pre-existing Conditions: Conditions present before the policy starts are generally not covered. 
• Exclusion Period: There’s a waiting period after you start the policy before certain illnesses and injuries are covered, this varies depending on provider. 
• Preventative Care: Most policies do not cover routine check-ups, vaccinations, or dental cleanings, but some insurers do have extras cover options.

Coverage Percentage:

Policies typically cover a percentage of the veterinary bill, such as 70%, 80%, or 90%. 

Annual Excess:

You may have an optional annual excess (deductible) to pay before your coverage kicks in. 

What Does It Cost?

Now that we know what it is, how much does it cost?

A quick search tells me that this ranges from $20-$120 for a one-year-old dog, but the average is $113 per month.  I did a fictional quote for a one-year-old mixed breed, $25k coverage, 80% payout which came in around $80 per month including dental.  This would go up each year of age. So after 10 years we have outlaid around $12,000 I’m guessing.

There are benefit percentages, which range from 70%-90% of claim back (you pay the gap), annual limits (up to $25k with KNOSE) and an excess which varies between insurers on how it is deducted (before or after benefit). 

Other Things to Consider:

Sublimits

Some insurers have ‘sublimits’ which caps the annual contribution towards certain treatments regardless of the overall annual limit.  Something to look out for.

Proof of age

You will need proof of age to take up pet insurance.  With a rescue, this can be difficult and you may need to get a vet assessment to provide evidence of age. 

Case Studies

I’ve taken a couple of scenarios from KNOSE’s website to get an idea of how this plays out financially:

• 3 year old Great Dane, snake bite treatment.  Total cost = $4203, amount paid by insurance = $3783
• 3 year old Golden Retriever, cruciate ligament surgery. Total cost = $4838, amount paid by insurance = $4264

In both of these cases, based on my rough estimates you would likely either break even or be ahead slightly as an insured dog owner, depending on your own actual insurance premium for your dog and any other treatments you may have been able to claim along the way. 

Here is a couple of other medical situations I have seen routinely and what I observed cost wise:

• Mild dog fight resulting in minor surgeries = $2000+
• Poisoning treatment = $10,000
• Tumour removal = $3,000

These are items that I have personally witnessed so are specific to that dog and situation and the vet at the time.  Obviously no one wants their dog to need treatment, and insurance companies are there to make money, so over time they should be ahead.  I guess it’s about your capacity to come up with up to $10k if needed or knowing you can get the treatment you need if you don’t have the spare money via monthly instalments.

Alternative Options

As stated previously I have never (as yet) held pet insurance for my dog, and I think my total vet bill for any medical issues would be less than $200 over 9 years.  I have a mixed breed rescue, that was free at the time and I have found these mixed breed dogs to often be very robust.  He is fed largely a quality raw diet with some supplements and his gums are pristine.  I’m ahead so far – but it’s a roll of the dice.

Verdict

Should you get pet insurance for your dog?  Totally depends on your financial situation, ability afford insurance in the first place, ability to fund unexpected vet bills and how lucky you feel!  There is nothing worse that having a fixable medical issue with the dog you love, only to not be able to afford medical treatment.  If this is your situation, it’s probably a decision to be made at the time of purchase and factor in as an ongoing cost before getting a dog.