Your Pet Insurance Guide

Pet Insurance Coverage for Behavioral Problems

I just came across this article on the Embrace blog written by the Laura Bennett, the CEO and Co-Founder of Embrace pet insurance company. 

Not all pet insurance companies cover behavioral issues. Some offer partial coverage while others offer coverage just like any other condition.

As a veterinarian, I see behavioral problems not too infrequently. Many times we have to run a battery of tests to rule out medical problems. For example, if a cat is urinating outside the litterbox, we may have to run blood tests, urinalysis, urine culture, xrays or ultrasound before concluding that the problem is behavioral rather than medical. As you can imagine, such testing can add up.

This is just one of the coverages that you might consider when comparing pet insurance companies. 

How To Evaluate A Pet Insurance Policy

Hi, everyone. I just uploaded my latest video to my YouTube channel. Although a Pets Best policy is used in this video, the principles can be applied to any pet insurance company's policy. In every pet insurance policy regardless of the company, you'll find several things that you'll want to call the company for further explanation.

Healthy Paws Pet Insurance Now Offers Unlimited - No Caps Coverage

Healthy Paws used to have a $25,000 lifetime limit (cap) on coverage in their policies. Recently, they eliminated that cap. Therefore, their policies have no per-incident, annual, or lifetime cap on benefits. The only limits are the deductible and coinsurance you choose with your policy.

The Best Way To Obtain A Quote For Pet Insurance

After answering the question, “Should I purchase pet insurance,” the next question pet owners wrestle with is, “Which company and which policy is the best one for my pet?” I frequently see this question asked on pet forums. Some of the answers given are good advice and some are bad advice. The better question would be, “How do I go about determining which company and policy is best for my pet?”

The first step in answering this question is to obtain a quote from every company that sells pet insurance in the U.S. There are about a dozen companies that sell pet insurance in the U.S. Your best chance at making a wise selection will come only if you have thoroughly evaluated what each and every company has to offer. 

Let’s look at several ways pet owners are first introduced to pet insurance and how it can influence your choice of company and policy for your pet:

Factors That Affect The Cost of Pet Insurance

 

Pet insurance premiums are what many pet owners focus on when investigating whether to purchase pet insurance for their pet. There are many factors that affect the cost of pet health insurance. 

 

1) Geographic location

Where you live affects the premium you will pay to insure your pet. For example, pet insurance premiums are generally higher in California than in Tennessee because veterinary fees are higher in California than Tennessee. 

 

2) The breed of your pet

Certain breeds of dogs or cats are known to have more health problems than other breeds, so the pet insurance company calculates this factor into the premium you'll pay to insure your pet.

 

Switching Pet Insurance Companies In Midstream - Part 2

Merrick, thanks again so much for sharing your story with the readers!

If you read my previous blog post, "Switching Pet Insurance Companies In Midstream," then you know what I went through in order to determine which pet health insurance company I felt was best for my 10yo dog, Frida.  In this “Part 2,” I want to share with you the process I undertook to make sure, in advance, that I wouldn't get surprises after I had signed up. I asked for an Underwriter's Review or Medical Records Review. This is something that the pet insurance companies don't always offer outright, so you may need to press them a bit further and ask for it.

Switching Pet Insurance Companies In Midstream

This is the second installment of guest posts by readers of this blog detailing their journey of researching and finding a pet insurance company and policy for their pet. In this story, Merrick decided to switch companies when his dog was 10 years old. This can present some challenges especially when considering the presence of pre-existing conditions. I greatly appreciated his willingness to share his thoughts during the research process and even now. The opinions expressed in this blog post are those of the author. Every pet owner's situation is different and may have differing opinions and/or reach different conclusions. However, this story can provide valuable insight into the process of researching pet insurance companies and policies.

 Here is what he wrote:

You and I have been conversing back and forth via e-mail for several months now, so I think it's time to tell my "pet health insurance story."

It's also an appropriate time to do so given that just last month I cancelled my 10yo Lab/Chow mix's policy I had with another company (one that uses a rate schedule) that we had since 2004 -- a full seven years!  She hasn't had any major problems since then, thank heavens, because I obviously want her to be as healthy as possible throughout her life.

But let's jump back to last fall (2010) when I was carrying our old policy, knowing it wasn't the greatest, but giving me at least a sliver of peace of mind, given that I was not aware of any other pet health insurance plans.

A Dog Day Afternoon - Pursuing Pet Insurance

I am so grateful that a reader of this blog has agreed to write a couple of guest posts about her experiences in selecting a pet insurance company and policy for her pet. I hope that it will be an encouragement to everyone else who reads it.

By Desiree Nascimento

In October 2009 I took on the task of purchasing pet insurance for my seven year old Kerry Blue Terrier. As I conducted research over a two month period I found the variables of pet insurance vast, the comparisons between companies confusing, and the task daunting. Yet I tackled it and came out on top.

Pet Insurance Comes In Handy

I came across a video blog that summarizes many of the points you should consider when deciding whether to get pet insurance for your pet and also how to decide on a company and and policy for your pet.

I don't think the intent of this video was necessarily to recommend Trupanion because they didn't look at all the companies that offer pet insurance in the U.S. I think the main take away from this video is to show the importance of getting unrestricted coverage for hereditary conditions. Getting this coverage didn't cost any more in monthly premiums, and paid off big time when a claim was filed. As many of you know, getting coverage for hereditary conditions is one of the 4 factors I consider most important when selecting a policy for your pet. Some companies don't offer coverage at all for hereditary conditions. Some offer restricted coverage like VPI and Pets Best in this video. Then, there are several that offer unrestricted coverage up to the maximums of the policy.

Some of the total costs given in the video (based on per-incident or annual maximums, deductible and copay) are inaccurate because Trupanion also doesn't cover veterinary examination fees which would add to the out-of-pocket costs somewhat. But, the overall message of the video is very well presented. 

Another lesson from the video that I'd like to point out to pet owners is that good coverage can be found for an affordable and competitive price, but it will require you to thoroughly research all the companies, not just these four companies, to pick which one is best for you and your pet.

Pet Insurance Books Updated

I'm finding that several pet insurance companies tweak their policies every year. Some have major changes e.g. changing underwriters and/or offering completely new policies. Therefore, it's necessary to update the books and worksheets that I've written.

I just completed updating Your Guide To Understanding Pet Health Insurance (paperback and Ebook versions) in February, 2011. They have the latest company and policy information. I've added a new chapter as well as fresh advice about several issues that came to my attention since the last update.

The Excel worksheets have also been updated and expanded to reflect all the possible policy combinations for each company. This really comes in handy for those companies that allow you to customize your policy. For example, with Embrace's policies, there are at least 60 different possible policies. I've also written downloadable and printable worksheets (for those that don't have Excel) that pet owners can use during their research of pet insurance companies. These also have formulas that you can use to manually calculate out-of-pocket expenses. Information on downloading these worksheets are included in the book updates.

I have been interviewed by folks writing an article on pet insurance for a newspaper or magazine. I've also done interviews for radio programs. While these mediums can provide an introduction to the topic of pet insurance for pet owners, they do not allow an in-depth discussion and analysis of the complexities of pet insurance. This blog, and especially the book, allows me to do just that.

The Ebook is a little more colorful and contains many live links to useful information to help pet owners in their research of pet insurance.

I want to thank all the readers who have responded via e-mail to the book and especially those who have asked questions. It has lead to some fruitful discussions where it is my hope that the readers have benefited from my advice and input, but I can say with certainty, I have benefited from their observations and experiences when doing the research to find the best company and policy for their pet. Please know that I welcome such interaction.

Perspectives On Pet Insurance

I just read the first chapter of a new book by Andy Andrews entitled "The Noticer." It is a book about an old man who finds people going through hard times and offers them advice. He "notices" things about their plot that they can't see and offers them a perspective that changes their attitude and ultimately their destiny.

You ask, "What does this have to do with pet insurance?" Well, nothing really except a line jumped out at me that is the inspiration of this post.

"Experience isn't the best teacher. Other people's experience is the best teacher."

If you are like me, before you buy almost anything of significance, you look at as many customer reviews as you can. Here you will read about the experiences of people who have actually purchased the product and/or dealt with the company. You will learn things by doing this that you won’t learn on the company’s website or even reading my book. I would advise you to not purchase a health insurance policy for your pet without looking at some reviews. Also, be sure to read the comments that follow the reviews. I found an excellent website to do this. Watch this short video.

When choosing a p et health insurance company, you are starting a relationship that you need to be comfortable with. Sometimes the service you receive and the trust factor is more important than the cost factor. Because pre-existing conditions are not covered by any insurance company, it is best if you make the right choice the first time rather than being dissatisfied and switching later to another company after you’ve filed several claims and your pet then has one or more conditions that won’t be covered.

Is Your Veterinarian A Reliable Source Of Pet Insurance Information?

Linda Markland, a tenured technician at Veterinary Pet Insurance (VPI), came by my office last week for a visit because they are familiar with my book. Dr. Carol McConnell and others were kind enough to share some of the insights they have into pet insurance when I was doing the research for the book. It was the first face to face visit I've had with a representative of VPI although they are good about calling or e-mailing me about interesting articles or podcast they discover from time to time about pet insurance. I was fortunate enough to form relationships albeit via e-mail and by phone with company CEOs, veterinarians, and others at most of the insurance companies who I continue to contact trying to keep up with changes as they occur. To all of them, I am extremely grateful.

Linda had spent three days in Memphis visiting several practices and even giving them seminars about pet insurance. I asked her what she learned. She told me that veterinarians in general don't know a whole lot about pet insurance and sometimes this includes even the companies that they recommend to their clients, whether it is VPI or another company.

This confirms a suspicion that I've had and even wrote about in my book. Insurance companies are very willing to send brochures to veterinary hospitals about their company to give out to pet owners. Many veterinarians don't know much about pet insurance and it's nice to have something that they can put into the hands of clients who inquire about pet insurance. Some veterinarians will even openly recommend pet insurance to their clients and give out the brochures, but really not know much about the company itself.

On the other hand, I believe that there are some veterinary hospitals whose staff has been adequately trained by the pet insurance company they recommend and can answer accurately specific questions pet owners ask. 

I've had veterinarians tell me that they don't have the time or inclination to learn everything they can about pet insurance - that's the pet owner's responsibility because they are the ones who ultimately decide if they want pet insurance and which company they will purchase it from.

If your veterinarian gives you a brochure from a pet insurance company, be sure to determine if it is a wholehearted recommendation and why they recommend that particular company. Then, go do your own research and see if you come to the same conclusion before purchasing a policy.

Another Factor To Consider When Purchasing Pet Insurance

A reader of my book and blog contacted me recently while doing her research before purchasing pet insurance. She had already done an amazing job researching in order to make a wise purchase. She brought up a consideration that, frankly, I hadn't given much thought to. As it turns out, it just might be important to some pet owners.

She lives in California and has a 7 year old dog. After she narrowed down her search to 3 companies, she looked at how much her premium would increase as her dog aged. This is what she discovered:

 

 

 

 

 

All three of these companies were favorable when compared to the important factors I outline in my book, but this was an eye-opener.

Company C doesn't raise premiums as the pet ages, so this could be an important factor for some pet owners. You should always be careful when a company advertises that their premiums don't rise as your pet ages. There is one company (not Company C) that keeps premiums level, but as the pet ages, the deductible and co-pay rises effectively increasing your out-of-pocket costs. Also, remember that a company can raise premiums for other reasons e.g. inflation, actuarial data, etc.

Which company did she ultimately go with? She was very tempted to go with Company C because of the no increase in premiums, but to get that premium she would have to get the $500 per-incident deductible. She ended up going with Company A and a $200 per-incident deductible.

So, when getting a quote from a company, you might inquire what the premium would be if your pet were older (use several different ages).

Pet Health Savings Accounts

While doing some research this weekend, I came across several companies that offer Pet Health Savings Accounts. It works somewhat like my own Health Savings Account my wife and I have with two exceptions. First, it isn't tax deductible. Secondly, it isn't tied to a high deductible insurance policy. Unfortunately, some of these companies are positioning themselves to compete with pet insurance companies for pet owner's dollars. 

I believe that a savings account and pet insurance should compliment each other, not compete against each other. The idea behind my HSA is that with my savings I can pay for minor medical issues, medications, etc. and the insurance policy will cover catastrophic medical issues. If I remain healthy, then my savings increase year by year. If I have a major health issue that I can't cover out-of-pocket, then my insurance will cover that. 

I try to put the maximum that is allowed into the savings account every year, and since my deductible is high, most years my insurance never comes into play. Does this mean the insurance is a waste of money (I pay quite a bit for it)? No, because all it takes is one year when you wind up in the hospital with a major illness or surgery to find out how necessary it is to have. 

For those people who advise starting a savings account, but not buying pet insurance leave the pet owner exposed to not being able to cover a major medical expense should it occur before their savings account builds up. And believe me - as a veterinarian, I see it happen.

Theoretically, as your savings build up, you can afford to raise your deductible and lower your insurance premium. This is what I've done over the years with my own health insurance. As premiums rose, it became almost cost prohibitive to keep maximum coverage. This usually meant changing to a higher deductible. The amount you choose for your deductible makes the biggest difference in the premium. What's interesting is to go to the websites of companies that allow you to choose your own deductible and notice the difference in the premium as you change this one variable when obtaining a quote. When choosing a higher deductible, make sure you can cover it out-of-pocket.

So, I prefer to advise the balanced approach. Pet owners should have a savings account, credit card, and pet insurance. Since pet insurance is indemnity insurance, the pet owner usually pays the veterinarian and then receives reimbursement from the insurance company within a couple of weeks after filing the claim. Having a credit card allows the pet owner to pay the veterinarian and then usually receive reimbursement before the credit card bill becomes due. As I said earlier, the savings can help pay for the deductible, co-pay and anything not covered under the terms of the policy.

Dog Breed Database

I was browsing the new Embrace Pet Insurance website today and came across really good information about many of the dog breeds. It details the characteristics about each breed and covers many of the diseases and problems that the breed is predisposed to. This should point out to pet owners the importance of buying a policy that covers hereditary conditions. It is likely that the problems and diseases associated with each breed in this database wouldn't be covered by a company that doesn't cover hereditary conditions. You should also take this into account if a company has limited coverage for hereditary conditions. I encourage you to visit this page. They apparently have a similar page for cats in the works. Thanks, Embrace for this valuable resource!

Pet Insurance Book

 

My new book is now available as a paperback on Amazon and Barnes and Noble. There is also an e-book format available that contains many live clickable links and worksheets that will help pet owners when doing their research. 

Use Discernment When Visiting Pet Insurance Company Websites

There is a wealth of information to teach you about pet health insurance on company websites. However, when a company starts comparing itself to other companies - be careful. Remember, each company is trying to put its best foot forward to the pet owner via their website. 

Because companies tend to tweak their policies from time to time (several have already in 2009) and even raise or lower premiums slightly, some of the information used in comparisons may be outdated. This can lead to inaccuracies that can mislead pet owners. Always verify what one company claims about another company by visiting the other company's website and even talking with a company representative. This is one thing you will see me say over and over - do your own research.

For example, I found a chart on one company website this week that compared their company to several of their competitors. They compared the premium for their policy with a $500 deductible to another company's premium for a $75 deductible policy. Of course, the policy with the higher deductible will almost always have the lower premium. When this chart was originally published on their website, the competing company didn't offer a policy with a $500 deductible, but it recently started offering a policy that has a $500 deductible which would be the better comparison. 

Just make sure when a company starts comparing itself to the competition that they are comparing apples to apples and what they are saying is up-to-date. Have a discerning eye and be wise. Proverbs 18:17 says:

"The person who tells one side of a story seems right, until someone else comes and asks questions."