Chelsea AlbertCory DobkinsJosh Bowman

Ross Cable

Introduction of Pet Insurance

The cost for medical care for pets is rising as fast as the cost for medical care for humans

This is helping boost the sales of pet insurance

Different DesignsThere is a rapidly growing array of policy designs

Designs range from high-deductible designs to coverage of alternative-medicine treatments

Some policies focus on accidents and illnesses

Other policies include wellness checkups and shots

Insurance also now covers hereditary conditions

More Policy DesignsSome policies pay flat amounts for various

treatments.

Some policies pay a percentage of the vet bills

Some policies limit payouts to a percentage of what they consider “usual and customary” fees, which may be lower than what the vet charges.

Limitations and PremiumsPet insurance often places strict limitations on how

much it will pay.

Insurance will not cover pre-existing health conditions, inborn conditions, behavioral modification, or pregnancy-related costs.

Premiums vary from around $10 a month to $75 a month

Premium level is dependent on the richness of the plan, your location, and your animal’s breed and age.

Increased Spending on Veterinary CareThis year pet owners are expected to spend

around $12.2 billion for veterinary care

That is $11.1 billion more than last year and $8.2 billion more than five years ago.

Reasons for Increased SpendingThe reason for the increase spending is

because complex procedures used for people are now being used for animals

These expensive procedures include chemotherapy, dialysis, acupuncture, and chiropractic

Increase in Pets InsuredCurrently, around a million U.S. pets are insured

This number is growing about 10% a year.

This is still just a tiny fraction of all the pets.

About 90% of the insured are dogs, about 10% are cats, and a small percentage are other animals including hedgehogs, snakes, turtles and geckos.

Many Different Pet Insurance Companies

Veterinary Pet Insurance (VPI) the is biggest U.S. pet-insurance company. VPI is a unit of Nationwide Mutual Insurance Co.

Other competitors include Pets Best LLC, Petplan Inc., Embrace Pet Insurance Agency LLC and Trupanion, a unit of Vetinsurance International Inc.

Why Get Pet Insurance?Some pet insurance holders claim they have their

pets insured because of quality-of-life issues.

Others claim they purchased pet insurance because they don’t want financial concerns to guide decisions about their pets’ care.

Pet insurance gives the owner peace of mind that they would have some financial help if something were to happen to their pet.

Workplace BenefitsSome consumers may be able to purchase pet

insurance through their workplace.

Around 19% of employers offer the policies as a voluntary benefit

These companies include Colgate-Palmolive Co. and Chipotle Mexican Grill Inc.

Tips When Considering Pet InsuranceStart Early!! Start shopping around for

insurance policies while the pet is still young and healthy.

Do research. Review pet insurance Web sites to find individual pet insurance firms and premium quotes.

Look at what you will have to spend out of your own pocket if your pet gets injured or ill.