Do you Need Pet Insurance?

By Joan Shin

When David Quilty of Santa Monica, California, took his cat Damon to the vet for a checkup, he didn't expect to spend $1,000 to get two of Damon's teeth pulled because of cavities.
"It was quite a shock," Quilty says. "It's the biggest expense we've ever had on him, and the cat is 13 years old."

Like Quilty, many pet owners are concerned by the rising cost of pet health care, which is partially the result of advances in veterinary medicine. Some are looking to pet health care insurance as one way to cope.

"The medical treatments and technologies being used for humans are now being used for pets," says Laura Bennett, chief executive officer and co-founder of Embrace Pet Insurance. Chemotherapy, heart surgery and MRIs are becoming more common in the pet world. But advanced treatments and surgeries can cost thousands of dollars.

Some pet owners facing an animal's serious illness or injury will choose to euthanize -- put the animal down -- for financial reasons. Or they will decide on a less expensive treatment for an injured animal.
"If they have a fracture that they can't afford to get stabilized -- can't afford to go to the orthopedic surgeon to plate it -- they might choose amputation rather than fix the fracture," says Dr. Lauren Adams of Emory Animal Hospital.

Such tough decisions are more likely in rural areas, Adams says, noting her clients in Decatur, Georgia, usually are able to pay for any specialized treatments that their pets may need.
Statistics show that people are willing to foot the growing medical bills for their beloved pets. U.S. pet owners spent $10.5 billion on vet care in 2005, compared to $7.2 billion in 2000, according to the Pet Industry Strategic Outlook report from Dillon Media LLC, a marketing and research firm.

Statistics vary on the percentage of pet owners in the U.S. who insure their pets. A 2004 survey by the American Animal Hospital Association estimated that three percent of pet owners carried insurance. That's far lower than in Sweden, where nearly 50 percent of pet owners insure their animals, according to market research publisher Packaged Facts.

Pet health insurance may be worth considering as a way to prepare for unexpected medical expenses. What's not always clear is whether it is cost-effective. Regardless, some pet care practitioners say such insurance may simply give owners peace of mind or help them make decisions about their pet's future that are not influenced by financial considerations.


When Pet Insurance Makes Sense
Storm was running along the fence in the yard when the neighbor's dog caught hold of his leg and tried pulling him under the fence. Storm's leg was severely mangled, and he needed three operations and regular X-rays.  Embrace Pet Insurance has reimbursed Kern for most of her bills. She has a 20 percent deductible, and so far the company has paid about $3,000.