6 Tips for Buying Pet Insurance

Becoming a pet insurance expert means asking the right questions. To help you we've prepared a list of the most important questions to ask when comparing pet insurance plans for your dog or cat.

1. Does the plan use a benefit schedule?

A benefit schedule is a list of diagnoses and the maximum amount that the pet insurance plan will pay if your pet requires treatment for that diagnosis.

In large metropolitan areas like Los Angeles the benefit schedule payout can be much less than the actual treatment costs. As a result, you may be left paying a large portion of the bill even though you have pet insurance.

Plans that pay a percentage of the actual veterinary bill are easier for you to understand because the calculation method is transparent - you can usually figure out your reimbursement before you send the claim in. You can read more about benefit schedules here.

2. Does the plan cover genetic conditions?

Many people love purebred dogs and cats but purebreds can harbor genetic and hereditary illnesses. For example, Labrador Retrievers are more prone to getting hip dysplasia, Poodles to progressive retinal atrophy, and Chihuahuas to luxating patellas. Even mixed breed dogs and cats are susceptible to genetic conditions.

The surgery and treatment options for these genetic conditions can be very expensive and only a few pet insurance plans cover them. Make sure the plan you choose covers your pet.

3. What is and is not covered?

Is it clearly stated on the company's website exactly what you're getting? The last thing you want is to make a claim and find out afterwards that the company won't cover your pet's condition for one reason or another.

4. Are there per-incident limits?

An incident is any given accident or illness and per-incident limits restrict the overall amount you can be reimbursed.

For example, let's say your dog is hit by a car and requires surgery and follow-ups that add up to $5,500 over the period of a year. If there is a per-incident limit of $4,000 then the pet insurance company will reimburse you only up to the per-incident limit. In this case you would be out of pocket $1,500 (that is, $5,500 minus $4,000).

Some companies have per-incident limits that are also lifetime limits and, once they're reached, you will receive no more reimbursement for that condition at all for the rest of your pet's life.

Not all plans have per-incident limits. If you pick a plan with these limits, make sure you know exactly how they work so you won't be surprised when you make a claim.

5. What are the rules around pre-existing conditions?

Are they excluded permanently or temporarily? Some plans exclude all pre-existing conditions while others differentiate between pre-existing conditions that are "curable" and "incurable" so that you may get coverage in the future for curable conditions.

6. What do their customers say about them?

Visit PetInsuranceReview.com to read candid customer reviews of all the major pet insurance plans in one place.

Pet Insurance Benefit Schedules

Some pet insurance plans determine the amount of your claim refund using a benefit schedule.

What Is A Benefit Schedule Exactly?

The image below is an example from the superior benefit schedule of one of the leading pet insurance companies, VPI. The first column of the benefit schedule lists the diagnosis for your claim and the dollar figures in the columns to the right are the specific reimbursement amounts for that diagnosis.

Actual Benefit Schedule Excerpt for a Diagnosis of Cardiomyopathy

In the example above, the total amount that you could be reimbursed for a primary diagnosis of cardiomyopathy is the sum of $216 plus $315, a total of $531. Now we'll look at the pros & cons of benefit schedules.

Pro #1: Easy to Disclose

Benefit schedules are easy to consolidate into a single document that can be attached to a policy and posted on a website. This compares favorably to another method used in pet insurance, the Usual Customary and Reasonable approach, where payouts vary by location and are harder to disclose.

Pro #2: Easy to Apply to Claims

If the benefit allowances are clearly laid out up front, pet parents can review the benefit schedule and see what their maximum payout will be for the year before they pay for expensive treatment. It can be harder to determine the coverage amounts if there are multiple diagnoses or no clear diagnoses, which happens more frequently than you might think.

Pro #3: Premiums May Be Lower

While some of the limitations of a benefit schedule reduce the claim payout (see the cons below), lower reimbursements are generally reflected in lower pet insurance premiums than other policies that do not use benefit schedules. If you understand and accept the impact of the specific benefit schedule on your future claims payouts, lower premiums can be appealing.

Con #1: Not Indexed to Inflation

If not updated frequently then the amounts shown in the benefit schedule can fall below current veterinary fees. According to the Bureau of Labor Statistics the average rate of veterinary inflation in metropolitan areas is around 6 - 7% per year. So if a procedure costs $1,000 this year then, on average, it will cost around $1,060 next year, then $1,124 the year after, and so on.

If the benefit schedule is not updated frequently, the gap between the cost of the actual procedure and the benefit schedule reimbursement grows over time. This means you get a smaller and smaller percentage of each vet bill the longer it has been since an update.

Con #2: Specialist and Emergency Vet Fees

Specialist veterinary practices can cost a lot more than regular ones. In the example above for cardiomyopathy, the benefit schedule will reimburse up to $531. But what if diagnosing and treating the cardiomyopathy cost $1,500?

In this scenario you would not get back more than $531 and you would have to pay 100% of any amount above the benefit schedule allowance, which amounts to $1,500 - $531 = $969 in this case.

Con #3: Does Not Vary By Location

Veterinary costs typically vary a great deal depending on the location of the veterinary hospital. For example, according to a recent phone survey we did, a cruciate ligament repair in Williamsville, NY, costs about $2,600 versus $4,600 at a specialist clinic in Manhattan, NY. The current pet insurance benefit schedules do not vary by location meaning that one cost applies to all locations across the US.

If the benefit schedule does not reflect geographic differences, the gap between the cost of the actual procedure and the benefit schedule reimbursement can be unexpectedly large if you did not check your benefit schedule in advance of paying for your treatment.

Conclusion

So, do the pros outweigh the cons? Depending on where you live and what kind of medical care you expect to give your pet should a future health concern happen, a benefit schedule might work for you; however, you need to fully understand the limitations when it comes to claim reimbursement time to avoid disappointment at a time when you are financially out of pocket.

In large part, other types of insurance have moved away from benefit schedules.

Usual, Customary, and Reasonable Fees

What Is UCR?

UCR stands for Usual, Customary, and Reasonable and is a way of reimbursing claims based on the actual costs of procedures in a geographic area. When it is used in pet insurance, it is similar to the way UCR is used for dental insurance.

Actual costs tend to recognize not only the relative veterinary costs where you live (for example, veterinary care in New York City is more expensive than in Des Moines) but also allows for higher costs for emergency care (emergency facilities are usually more costly than your family vet clinic because they are 24/7 and 365 days a year) and veterinary inflation over time.

ASPCA Pet Insurance is an example of one company that uses UCR to reimburse claims.

Pros and Cons of UCR

For the general case of UCR in pet insurance, here are some pros and cons to the approach.

Pro #1: Claim Payouts Vary By Location

Compared to a benefit schedule that generally does not vary by location, UCR is usually more sensitive to the regional variation veterinary charges. The UCR method generally pays more in more expensive locations, such as large metropolitan areas, than less expensive locations.

This means, you should get more back for a claim in Los Angeles than you would in a more remote part of California, such as Bakersfield CA, for the same procedure – of course, your vet would likely charge you less in Bakersfield than LA as well.

Pro #2: Premiums May Be Lower

While some of the limitations of UCR reduce the claim payout (see the cons below), lower reimbursements are generally reflected in lower pet insurance premiums than other policies that do not use UCR. If you understand and accept the impact of the specific benefit schedule on your future claims payouts, lower premiums can certainly be appealing.

Con #1: Hard to Disclose

Because UCR charges vary by location and possibly over time, it is not easy to disclose the UCR details to policyholders and can become a bit of a black box, creating uncertainty about how much will be paid out on a claim.

Con #2: Claim Reimbursement May Be Lower

While the UCR charges do vary by location, you may find that your veterinary bills are higher the UCR table values, something you may only find out after you have paid your vet bill and received your claim decision.

Conclusion

So, do the pros outweigh the cons? Depending on where you live and what kind of medical care you expect to give your pet should a future health concern happen, UCR might work for you; however, you need to fully understand the limitations when it comes to claim reimbursement time to avoid disappointment at a time when you are financially out of pocket.

Other types of insurance, in particular dental insurance, uses UCR charges to manage their claims but only a few pet insurance companies actively use this method.

Need Of Pet Insurance

Need Of Pet Insurance

Need of pet insurance is essential for every pet owner and pet. Pet insurance gives a peace of mind and reduction of the veterinary bills. It’s always safe to insure your pet for its future healthy life. Hence the pet owners have started realizing the need of pet insurance. Pet insurance is the policy which provides protection for pets and the pet owners too.
Here are some facts related to need of pet insurance.

• Increase in popularity
  Just as human medical costs, the veterinary costs are too becoming expensive. Insurance policy for pets is the best option for the pet owners. Many of the insurance policies cover the vet bills. In last few years, pet insurance has grown popular among the pet owners. As new companies are coming up with new policies, many people opt for it. This reduces the financial burden of the pet owner and provides protection to the pet too.
• Covers most medical expenses
  Most of the insurance companies cover vaccination, regular check up. Some of the companies cover certain expenses such as drugs, emergency care and laboratory tests. 80 percent of the vet bills are covered in the insurance plans. Most of the pet care issues are covered in the insurance policies. Hence the need of pet insurance is genuine for every pet owner.
• Coverage for advanced pet treatments
  As discussed, many of the insurance companies cover medical expenses. There are certain companies which provide protection for the higher medical treatments. Radiation therapy and kidney transplants which were only available for humans are now available for pets too. These treatments are also covered in the policies.
• Third party liability
  Some insurance companies cover third party liability. This means, if the pet causes any damage to somebody or their property, the pet insurance companies covers the damage.
• Death benefit
  Just like humans insurance policies have death insurance benefits, pet insurance too have death benefits. A payout, based on the market value of the pet is paid to the pet owner if the pet dies due to illness or an accident.
• Reward
  There are different policies for different insurance companies. Some of the companies reward the pet owner if their pet is lost. They also put an advertisement in the newspaper of the lost pet.
• Provision of kennel
  There is a provision of kennel by most of the insurance companies. Pet owners can keep their pet in the kennel so that the pet does not damage the house property in their absence.
• Maximum age limits
  As a pet becomes older, it often falls ill. So, it is more important to have maximum insurance cover for it. Older pet animals tend to develop many health issues. The risk of developing conditions such as arthritis, heart and kidney diseases are more likely in them. The medical expenses for them are too costly. Most of the insurance companies provide coverage to these old pets.
• Multiple pet discounts
  Multiple pet discounts are given by the insurance companies when the pet owner possesses more than one pet. They give special discounts and a reduced fee for covering these pets.

Apart from the above benefits of need of pet insurance can be underlined by the following facts supporting pet insurance:

• Each year one in every three household pets injure themselves, hence there is a need of pet insurance for the pet's healthy life
• The insurance cover may pay for the emergency visits to a vet that could cost hundreds or even thousands of dollars
• Even a Minor treatment is expensive in visit to a vet. The insurance companies cover the vet fees

The Need of pet insurance is getting very important with the rise in the vet bills. Above mentioned are all the advantages of the pet insurance. It is better to secure the pet from all the health issues by insuring it.. 

Pet Insurance Plans

Pet Insurance Plans

Pet insurance plans vary from company to company. The number of companies that offer pet insurance has grown over the past few years. It is no more a new concept. Insuring the pet has become a necessity for the pet owners. Whether it is a pet dog, cat, rabbit, horse, or fish, there are many plans available that will suit the needs of the pet and the owner.

Before opting for any insurance plan for the pet, one should consider the following factors

• Health conditions: The owner should check the health condition of the pet. Some companies charge heavily for the older cats. They refuse to insure the pet for longer period.
• Good insurance: Before opting for the insurance policies for any particular company, one should check out the feedback of the customers. Before going for any particular plan, compare pet insurance plan with the other policies available in market.
• The cost: The cost for insuring the pet varies according to the pet plans of different companies. Check the best cost available which covers all the needs of the owner and the pet. The cost for insuring the adult pet is higher as they often fall sick.

The basic pet insurance plans are

• Pet medical insurance: Medical insurance covers the accident cost of the pet. It also covers the health related problems of the pet which includes the vaccinations, vet bills and routine checkup for the pet. The cost of medical insurance differs according to the pet and the company. For example the cost for insuring the pet cat is less than that of pet dog.
• Low cost pet insurance: Low cost pet insurance is a cheaper pet insurance plan. It covers the veterinary fees, diseases or any other emergency. There are specific limitations for this plan. The duration for protection of this pet is for certain period, it is not a lifelong plan for the pet. Hence the cost of this plan is less as compared to the other plans.
• Expensive pet plan: This pet plan covers the maximum protection for the pet. It offers the veterinary bills, the medical emergencies, and loss by theft, vaccination, regular checkup. The plan provides a lifelong protection to the pet. Therefore these plans are expensive but are best to the owner and the pet. Apart from above basic plans there are three best pet insurance plans available from the pet insurance companies like VPI, Purina Care Pet Health Insurance and ASPCA health insurance
• VPI health insurance plans: VPI provides coverage to wide range of pets like dog, cat and other exotic animals. This insurance company covers two plans, medical plan and major medical plan. All the major bone disorders of the pet and all the health issues are covered in major medical plan. Both the plans provide coverage for routine checkup, vaccinations and other medical emergencies. The annual cost for major medical plan is 14,000USD and 7000USD for medical plan
• Purina care pet health insurance plan: Purina pet insurance offers two plans Purina care plus preventive care, and Purina care without preventive care. In preventive care plan it covers vaccinations, dental polishing, flea control and spaying. Both the plans cover major medical costs hospitalizations, surgeries, medications accidents, illness and other hereditary conditions. The maximum limit per year for both the plans is 20,000USD.
• ASPCA Health insurance plan: This health insurance plan provides insurance for pets under 11 years old. There are levels for this plan, level 1, level 2, level 3, level 4, and level 5. Each level has different coverage and cost. For example a level 1 plan covers accidents and most illness. It costs 11USD per month and annual deductibility of 100USD per month. It includes the pet care, accidents and illness of the pet. The younger the pet the wider range of coverage is available for the pet. The cost of the plan differs according to selection of the coverage and the level.

Pet insurance plans are widely available; one must consider all the factors and the various plans mentioned above to get the best plan for your pet. 

Pet Insurance Comparison

Pet Insurance Comparison

Pet insurance comparison is essential for every pet owner. Insuring a pet gives a peace of mind and reduction of vet bills. There are many insurance companies coming up with their policies for pets. Being a pet owner, it’s their responsibility to take care of the pet by insuring it. Pet insurance comparison of policies will help a pet owner to select the best policy for his/her pets.

Finding the right pet insurance plan for pet can be tricky. Some of the insurance company covers all basic health issues while some cover basic as well as major health issues. Some important factors to be considered while selecting a particular insurance company are:

Basics to be remembered
Issues discussed in pet insurance are same as human health insurance. Almost all policies cover accidents/injuries illness and diseases. They also have provision for reimbursement for routine preventive care like vaccinations. Most of the policies of all companies have deductibles and certain exclusions for some breed of dogs or cats, pre-existing conditions and genetically transmitted conditions

The coverage
While doing pet insurance comparison, check what all it covers. See what suits best for pet and whether the coverage available is helpful for pet.

Payment per year or on monthly basis
Cost is the important factor when it comes to insuring pet. Most of the pet owners want maximum coverage for pet at a low cost, while some are ready to pay heavily for pet’s healthy life. The annual payment to insurance company is the amount the owners pay per year for coverage or annual premium. Most companies bill premiums are on a monthly basis too.

Deductibles
Deductible is the amount, pet owners have to pay, before the insurance company begins paying for vet fees. Usually companies have deductibles for a year, or deductibles per incident (illness, disease or accident) and per veterinary office visit. Compare the deductibles with different companies and get what suits the pocket.

Inclusion of a co- pay
Co- pay is the amount of money pet owner must pay per veterinarian office visit or treatment in addition to the deductible amount. Some companies do not include a co pay, while some of them possess it.

Exclusions
Insurance policies have certain exclusions in insuring the pet. The exclusions can be breeds, pre-existing conditions, age of the pet that are not covered by a policy. Most companies exclude some breeds of cats or dogs or offers limited coverage to them.

Limits of the policy
All pet insurance companies have annual policy limits. They deny paying above their limits. There are policy limits for illness, life of the animal, total policy limits and accidents. Check these limits with other company’s policies limits.

Reimbursement procedure
A pet insurance company asks the pet owner to pay the veterinary fees during their visit. The companies will later reimburse the fees that are covered in the policy. Check the time taken to reimburse the amount. A good insurance company should make things faster.

The reputation of the company
Check the reputation of company with past and current policy holders. Get their feedbacks. The above stated tips will help the pet owner to find best policy for pet. 

Pet Insurance Claims

Pet Insurance Claims

Pet insurance claims are the type of reimbursement the pet owners ask from the insurance companies. The pet owner can claim for the vet bills. The vet bills include the surgery bills, vaccination, vet fees, and the medication bills.

For most of the people, purchasing a pet insurance is a type of investment. Investing a few dollars per week into a pet insurance plan can save lots of money. After investing on the pet, the owner can claim for any emergency related to his/her pet.

There are different ways for pet insurance claims. These depend on the policies of the companies. While insuring the pet, one must check the type of claims available in the company.

There are three items necessary for filing a claim

• Claim form
• Itemized receipt
• Written medical records (specify the incident)

There are two different types of claims available

• Getting reimbursed
  Most of the insurance policies use a reimbursement system. In this system the pet owner pays the veterinarian fees as usual. At the time of submitting the payment, ask the veterinarian or his/ her assistant to fill up the claim form. This form is provided by the insurance company at the time of enrolling the pet for insurance.Steps to get the reimbursement
  
  • As discussed above, get the claim form filled. Get it signed by the veterinarian. This is important for claiming the insurance. Without the signatures the companies do not accept the form.
  • Ask the veterinarian or the assistant to make the copy of the pet’s medical records. This can help the claim adjudicators to understand the pet’s medical history. Written medical records of the accidents or illness treatments are essential as a proof for the claim
  • Mail these three items to the respective insurance company
    Claims form
    Written medical record
    Itemized receipt
• Receiving discounted pet health care
  • A newer form of pet insurance consist an insurance plan where the pet owner chooses a veterinarian of their choice from the list provided by the insurance company.
  • The pet's insurance card is provided by the insurance company. At the time of visit, one needs to show the pet’s veterinarian card. A discount of, usually 25% is provided on the bill. Paper work is done by the veterinarian. The insurance company reimburses the veterinarian.

It takes nearly 10-20 working days for the claim to process. Within 90 days from the date of treatment, the pet owner can file for claim. Some companies have different requirement, depending on the type of claims. For example, while claiming for vet fees, some companies let the owner make a minor claim. This minor claim can be made over the phone, without filing the claim form.

The request is processed and then a check is sent to the pet owner. For the larger pet insurance claims, the process is discussed above. In a complicated or a serious claim the pet owner needs to take permission from the insurance company. A written diagnosis from the vet is essential for the proof.

Format of pet insurance claims differs from company to company. There are various ways to file for a claim. Before insuring the pet, check the claim procedure with the insurance companies.