Trends indicate a growing consumer interest in veterinary pet insurance nationwide but the simple truth of the matter is that a comparatively small number of us have actually made the leap. The vast majority of pet owners still operate on a pay-as-you-go policy. That’s a bit strange when you consider that most of us are very much hung up on ensuring we have health insurance for ourselves and our families. It is even stranger when you consider that many of us consider our beloved pets to be family members. So why aren’t we all clamoring for pet insurance? 

A 2003 study by Consumer Reports painted a fairly unflattering portrait of the pet insurance industry. Their study implied that for an average pet’s care over its lifetime, you’re better off NOT having veterinary pet insurance. Cost benefits were only realized in uncommon cases (they cited a hip replacement surgery in their example) and even then the cost benefits would only be realized under a few offered plans. You can read the report by clicking this link. BUT… 

I hope you’re still reading because there are a few important points about this article you should keep in mind before you simply close the books on the idea of pet insurance. The first is that this article was written in 2003. Veterinary insurance has come a long way in just the last few years alone with better coverage and more reasonable premiums and deductibles becoming the norm. Going on 6 years old, this review is hardly the most reliable or current piece of information out there. So why do I bring it up? Because if you search for “is veterinary insurance worth it” this article is number 1 on page one of the Google search page. That means it is the first authority article many of you will read on the subject and, given its outdated nature, that’s unfortunate. 

The Consumer Reports review goes on to mention that you’re much better off simply managing your money wisely and keeping a savings account well stocked for those vet visits. Great advice and I’m an advocate of keeping a healthy savings account built up at all times, but for all its wisdom, it isn’t realistic advice. Why? Because Americans are terrible at saving money. We’re a credit-based nation and the current economic disaster should make that point clear. So while the advice is sound, the practical application isn’t something most Americans will follow. That means, when Fido does find himself in need of expensive surgery, most of us will suddenly find ourselves with neither the savings nor the veterinary insurance to take the sting out of the bill if we follow their advice. That said, if you are good with your money, can save a consistent amount every month, can leave that money untouched except for veterinary needs and are prepared to see it take a heavy hit if your pet has an emergency, then this might be the best approach for you. 

Finally, quality medical care for pets has improved significantly over time. That’s great. The downside is that potential costs have risen in lockstep. The CR report indicates that specialty care can render their findings moot. It’s important to know that what might have been uncommon specialty care in 2003 is far less uncommon today. It’s when you get into the area of specialty care that you begin to realize significant cost savings through veterinary pet insurance and you’re far more likely to request or accept specialty care these days. In the last 6 months my pets have had everything from biopsies to a $2000 ocular surgery and that’s on top of their routine care and treatment for such things as skin allergies. Suffice to say, it’s highly unlikely that I would have set aside $5000 for veterinary care in my savings account to allow for what’s been a medical whirlwind this year. 

At the end of the day I don’t doubt that there may be more cost effective ways of handling an average vet bill. But I also feel confidant that most are either wholly unrealistic for the majority of us or that they don’t allow for unplanned emergencies (is there any other kind of emergency?) The Consumer Reports article does a disservice to a much improved industry. While it was certainly sound advice for its time, its continued position at the top of page 1 for search terms related to veterinary pet insurance values is an unfortunately misleading thing for many who might very well benefit from the services insurance companies offer. The review does, however, have some timeless advice to offer. Do your research. Prior to purchasing veterinary pet insurance, ensure that you know what it’s going to cost you every year and decide for yourself it is cost effective. 

And let me throw in my own bit of wisdom… I know many people who wish they’d had pet insurance when they needed it. I honestly believe, from my own experiences, that most pet owners who actually care for the animals they consider family members will, sooner or later, find themselves in the position of wishing they had vet insurance.