A Brief Overview
"Pet insurance" refers to coverage for dogs and cats. Insurance for other pets such as birds, rabbits, and snakes is generally found under "avian/exotic pet insurance." Some companies will even cover such rare pets as kestrels or chipmunks.
In general, pet insurance works on a reimbursement system. Owners pay the bill, then submit a claim form to their insurance company, which will send a check to the owner for the amount allowed by the policy. This allows owners to work with the veterinarian of their choice. However, some companies do require selecting a vet from their network; some require the vet clinic fill out the claim form.
Also, pet insurance refers to health care. Dental work isn't covered unless it's related to an accident, and pet liability is a separate type of insurance.
Types of Coverage
Before contacting insurance companies, owners should have a general idea of what they want covered. Just accidents? All, or most, medical visits?
Plans range from basic accident-and-illness coverage to comprehensive coverage, which may include spay/neuter surgeries, and even death benefits. General wellness exams and routine vaccinations are usually offered only in more comprehensive plans, or as a rider to other plans. The specifics vary and plans should be compared against competitive companies as well as against pet/owner needs.
What's Not Covered
Because pets have increasing health problems as they become elderly, most companies won't enroll an animal once it has reached a certain age, determined by animal type and breed. Most companies exclude pre-existing conditions and hereditary disorders from benefit reimbursement. Other things commonly excluded from benefits: parasites (such as ticks, heartworms, or giardia), special diets, treatment for diseases preventable by vaccines, and behavioral issues.
Owners evaluating their insurance needs should be aware of their pet's breed, where possible, of the hereditary disorders common to that breed, and of their pet's current general health. They should look at how each company defines pre-existing conditions, and what hereditary disorders the company excludes. For example, some policies consider an ailment pre-existing if it began before the policy was in effect even if the diagnosis happened under the plan policy. It is also important to clarify whether an ailment believed to be cured will be covered if it recurs under the policy, and whether an ailment found under a policy will be considered pre-existing when the policy is renewed.
Pet insurance companies provide much of this information on their websites. However, if owners don't see information pertaining to their specific needs, they should contact the company for clarification.
Dollar Amount of Coverage
Every plan works differently, so it's important for owners to know as much as possible and compare plans before enrolling. All plans have monthly premiums, which may be paid in a yearly sum, often for a discount. All also have a maximum benefit limit, after which the owner is responsible for all expenses. Some plans use a benefit schedule, a predetermined allotment for the procedure, often assessed per incident. Others use "usual, customary, and reasonable" method, in which they pay a percentage of the total, less the deductible. However, this method may include a maximum amount allowable for reimbursement, as determined by procedure and geographic location.
Summary
Before enrolling in a plan, owners should know:
- What coverage do I need for my pet need given his age, breed, and current health?
- What pre-existing conditions and hereditary disorders does the plan exclude/include?
- What is the monthly/annual premium? Is there a benefit schedule or amount allowed per incident?
- What are the renewal terms? Will long-term problems still be covered under the next policy?
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