Pet insurance comes with monthly premiums, which pet owners need to weigh against potential emergency bills that can cost tens of thousands.
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In 2014, my wife and I got our first pet together — a sweet rescue dog named Chewbacca. Chewie had been neglected by his previous owners, and came to us with a skin condition that left the rear half of his body hairless and scarred.
The staff at the rescue shelter did commendable work helping him recuperate, but there were no assurances his hair would grow back, his previous condition wouldn't return, or other related issues wouldn't arise. We loved Chewie at first sight and had no doubts about his character, but assuming the potentially high cost of his care seemed daunting for a pair of 30-somethings with modest incomes.
One suggestion we heard repeatedly was to get pet insurance, so we dove headfirst into guides and provider rankings, compared policies and rates, and consulted with local veterinarians.
As we researched, I noticed discussions about pet insurance tend to focus on qualities of the pets like their age, size, breed and health history while ignoring the circumstances of their owners.
To remedy that oversight, we asked ourselves the following three questions as we weighed our options.
According to claims data from pet insurers, the average veterinary emergency costs around $1,000, but you have to keep in mind that this is just an average. Routine emergency care can cost thousands of dollars, while more complicated or extensive treatment may run tens of thousands.
If you can pay exorbitant amounts out of pocket without straining your finances, then you might not need pet insurance, but its an option if you prefer the low-variance option of paying a monthly premium rather than betting on your pet not needing any emergency care.
My wife and I could afford to cover the bulk of emergency vet bills out of our savings, so rather than sign up for insurance, we established a separate pet emergency fund.
We were glad to have that cash on hand, as Chewie turned out to be a prolific counter-surfer, which led to an emergency visit to have his stomach pumped when he downed a whole bag of grapes.
We would have come out ahead with insurance in that case, but what mattered most to us was knowing our dog would be taken care of.
This may seem callous, but putting a dollar value on your pet can be instructive. Resources are finite, and you may not be able to spend as much as you'd like to keep your pet healthy.
Recognizing the difference between what you can pay and what you're willing to pay will help prevent your heart from writing checks your wallet can't cash.
If you're incapable of letting your pets go while any glimmer of hope remains, then insuring their health is imperative. Otherwise you may end up draining your life savings to keep them alive.
Insurance offers peace of mind that you won't have to make a gut-wrenching choice between your pet and your financial well-being. I recommend writing down how much you're willing to spend while your pet is healthy, so you have a dispassionate number to reference later. If your willingness and ability to pay for veterinary care are on par, then insurance is less of a necessity.
My wife and I were glad to have established a spending cap when Chewie got sick in 2020. We paid several thousand dollars initially to diagnose and treat his ailments, but when those early treatments proved unsuccessful — and the remaining options were more costly and less certain — knowing our limits helped us make the tough call to say goodbye.
What you know about your pet can clarify your decision on whether or not to buy pet insurance. That goes for breed and gender, as well as less conspicuous characteristics like health history and personality. All pets are susceptible to illness and injury — but the more you know, the easier it is to estimate your pet's needs.
Additionally, what you don't know about your pet adds uncertainty. Adopted pets may come with habits that put them at increased risk: for us it was counter-surfing, but your new dog might be an escape artist or your new cat might have a penchant for scuffling with neighborhood rodents.
Adult adoptees are also more likely to have undisclosed medical conditions, such as the latent infection caused by ticks that we found in our second dog, Tanuki.
Fortunately, our vet was able to treat him quickly and inexpensively, but diagnosing and treating such illnesses can be expensive, especially if they require chronic care.
