Is Pet Insurance Worth It, And How Do You Choose A Plan?

For some, the costs of pet insurance don't make sense. But it can provide peace of mind that they'll be able to seek out expensive care in an emergency knowing they can get reimbursed and even avoid the painful decision to euthanize or surrender a pet.

Carmel Valley resident Hilary Lefort has always used pet insurance for her dogs and told her children to not even consider adopting a pet until they can afford monthly insurance payments. "I'm really glad I've had it," Lefort says.

Monthly payments for policies on puppies are usually low, depending on the breed. The insurance works just like human health insurance, with annual premiums, deductibles and caps. Lefort pays approximately $50 a month per dog. "[Insurance companies] get five years of not paying much out, and then you get five years of them paying a lot out," she says.

One small dog the family adopted, Norman, turned out to have a serious spinal issue and needed an $8,000 MRI from the UC Davis Veterinary Hospital. The insurance company worked with the hospital to prepay the bill before Lefort even arrived at the hospital in the Central Valley. Had Norman needed spinal surgery, insurance would have paid 90 percent of the cost. "It allows me to make the right decisions for my dog without worrying about how I'm going to pay for it," she says.

An $8,000 MRI is an extreme example, but Lefort says the insurance is worth it even for smaller issues. At least one of her dogs will get a foxtail lodged in their nose every year from walks in Garland Ranch Regional Park, resulting in a vet bill of about $300 per visit. Over the years, she's had dogs that have experienced cancer, a congenital blindness condition, kidney failure, gastroenteritis and other ailments. "There's rarely a year where there isn't any claim at all," she says.

Purchasing coverage when pets are young results in lower premiums over the life of the pet, but those can rise dramatically for older pets. According to U.S. News and World Report, the average cost of coverage for a young dog is around $48 a month for basic coverage. The next tier of coverage, comprehensive care – which covers office visits, tests, X-rays and lab fees – runs higher. Wellness care – which includes preventative care – can exceed $150 a month. (Insurance for cats generally has lower premiums, at an average of under $30 a month for basic coverage.)

Since the first pet insurance policy was issued in 1982, the number of companies offering policies has mushroomed. Choosing a plan isn't an easy task. It's important to weigh the cost of the plan against deductibles and what is and isn't covered, as well as finding out if your vet accepts insurance. Some companies offer discounts to military members, multiple pets or service animals.

At VCA Ocean View Animal Hospital in Pacific Grove, clients receive a flier with the names of 10 companies and the suggestion to visit petinsurancereview.com for a comparison of insurers and plans they offer. Another good source of information is U.S. News and World Report's comparison, viewable at usnews.com/insurance/pet-insurance.