Just as health care technology has dramitically advanced, so has veterninary science. Illnesses previously untreatable even 10 years ago are now routinely resolved, thereby helping out pets live longer lives.

Veterinary Care Inflation and the Effect on Your Wallet

Veterinary science has seen remarkable breakthroughs in the past two decades, but just as in the human health sector, costs have risen. Many pet illnesses and diseases are being treated that often went undetected in the past.

While veterinary medical advances extend our pet's quality of life, the financial impact for pet owners cannot be overlooked.

Many times, unexpected veterinary expenses wreak havoc with the family budget. Our neighbor's German Shephard, a wonderful dog named Duke, began to suffer from hip dysplacia. Our neighbors got Duke treated and he's now happy and healthy again. The cost of Duke's treatment was $2100 - no drop in the bucket.

How Pet Insurance Works

Pet insurance has been around for decades in Europe, but is relatively uncommon in the United States and Canada. Much like health insurance for us, pet insurance drastically reduces the risk of caring for your pet. Perhaps most importantly, it can eliminate the heart wrenching decision of euthanizing your pet vs. incurring a large financial hardship.

In a way, pet insurance companies are like health insurance companies. They may or may not cover certain health conditions, depending on the policy restrictions. Some pet insurance companies will not accept senior pets, similar to health and life insurance companies reluctance to cover senior citizens.

Anyone considering pet insurance should ask themselves this question: "Will I devote a reasonable amount of time and money to treat and heal my pet?". If your answer is "yes", you're a good candidate for pet insurance. Sadly, many pet owners are forced to choose between finances and their pet's health. Worse, other pet owners view their pets as disposable, and simply won't treat the animal if it becomes too ill.

Typical Plans and Costs

Most pet insurance plans offer coverage for as low as $10 per month. Typically, there is a $50 deductible, and an annual cap of about $10,000. Pet insurance plans for senior pets (normally 8 years and older) will run a bit more, normally $29.95 per month, but be aware that only one company we know of accepts senior pets for coverage. Costs for cats and dogs generally run the same.

Specifically, pet insurance covers illness and injury, although some plans do offer coverage or discounts for routine expenses like check ups, shots, etc. Most do not because it's easy to budget for routine expenses vs. unplanned incidents.

The Story Of Two Pets

One of my co-workers has two pets, a 6 year old cat and an 11 year old border collie mix. Early last year, his cat Whiskers was diagnosed with a respiratory illness, similar to asthma. Complicating matters, the border collie mix was found to have a small malignant tumor during a routine check up. Several months earlier, my co-worker had taken out pet insurance on both pets, roughly $10 per month for his cat and $30 monthly for his dog. After all was said and done, his cat's veterinary bills totalled $1600 and his dog's bill was almost the same, $1500.

He later told us he was reimbursed $1280 for Whiskers, and $900 for Diamond, accounting for a normal $50 deductible for an adult cat and a $200 senior dog deductible. Therefore, instead of an unplanned $2430 veterinary expense, his total cost was only $250.

Researching Pet Insurance

There are several pet insurers in the marketplace, so do your homework and make sure your policy is right for your pet. If you feel comfortable budgeting for routine annual costs like check-ups, immunizations, flea preventative, etc. there's no need to pay for routine coverage.

If you determine pet insurance is right for you and your pet, here are some important factors to consider when choosing the right policy for you and your pet:

1. Look for Guaranteed Acceptance, no matter your pet's age. 2. The ability to use the veterinarian of your choosing. 3. Fixed Premiums/Deductibles: Your premium shouldn't increase as your pet ages. 4. Unlimited Accident Coverage: Accidents happen, particularly with pets.