Pet Insurance Decoded
According to figures from the North American Pet Health Insurance Association, almost 2.43 million pets were insured in North America in 2020 alone. Pet insurance is designed to provide financial assistance during unforeseen veterinary visits, managing long-term health conditions, or in the context of paying for damages.
With a proper insurance policy in place, you can have peace of mind knowing that the financial burdens associated with the care of your pet will be manageable. Making the decision whether to use insurance at all, let alone choosing a pet insurance provider, is not always straightforward. Navigating the landscape of pet insurance providers, requires understanding of some fundamental aspects.
Factors to Consider
- Coverage: Different policies cover different scenarios. Some insurance policies cover only accidents, while others include both accidents and illnesses. There are comprehensive policies that cover everything from accidents, illnesses, to even preventative care and wellness services like vaccinations and routine check-ups. A closer look at your pet's specific needs will assist you in determining what type of coverage is most suitable.
- Cost: The cost of a policy is determined by several variables, such as the coverage level, your pet's species, breed and age, and where you live. Instead of selecting the cheapest policy, strive for a balance between affordability and comprehensive coverage. Look for a policy that provides adequate protection for your pet while remaining within your budget.
- Claims Process: During a time filled with concern for your pet's health, the last thing you wish for is a complicated insurance claim process. Review the insurer's claim procedure thoroughly, including their reimbursement policy, waiting periods, and whether they offer any direct payment options to veterinarians.
- Exclusions: Exclusions can significantly impact your ability to claim insurance when your pet needs it the most. These often include pre-existing conditions, hereditary or congenital disorders, and breed-specific health concerns. Ensure you are fully informed about what the policy does not cover to avoid unwanted surprises in the future.
- Policy Limits: Some policies come with annual, lifetime, or procedure-specific limits. If the cost of treatment exceeds these limits, you will have to cover the remaining amount out of pocket. Analyze these restrictions in detail, and understand how they may impact you financially during various scenarios.
Individual Circumstances
- Age: Insurers generally have a cut-off for coverage, and a point at which the premium costs increase significantly.
- Species: Typically, cats are cheaper to cover than dogs. Some insurers offer coverage for horses and birds as well, but beyond these 4 species there aren't really many options.
- Breed: There is a large discrepancy in how much an insurer will charge for premiums, between one breed to the next.
- Current Health: Pre-existing conditions are not usually covered and some may disqualify your pet from insurance altogether.
- Reimbursement Conditions: Some insurers offer to bill the vet directly, but the decision lies with the vet. A big point to consider is how long the reimbursement period is as this can also vary greatly from one insurer to the next.
Adapting to Your Locale
Germany
In Germany, pet insurance falls under three categories:
- Full health insurance (all diagnostic and treatment-related costs, limited preventative care coverage)
- Operation insurance (only operation-related diagnostics, operational costs and surgery-related after care)
- Liability insurance (coverage for damage caused by the pet to property or third parties)
In light of the recent GOT (veterinary fee structure) increases in Germany, and with some procedures rising in cost by over 300%, insurance premiums have gone up considerably. Unfortunately, several insurance companies have also used this opportunity to increase their profits and also cut costs. Many pet owners experienced exorbitant increases in their premiums, many more with old pets simply had their contracts terminated, through no fault of their own.
France
Pet insurance options in France typically fall into two categories: insurance against accidents and insurance against both illness and accidents. This coverage includes medical and surgical costs stemming from an accidental injury like a broken bone, cuts, or bite wounds. Pet health insurance in France typically requires you pay a deductible and it is quite rare to find unlimited coverage (unlike in Germany). That said, remember: unlimited coverage doesn't help if it's almost impossible to get a claim approved.
Rest of the World
Remember that pet insurance policies and regulations can differ by country. Understanding local policies is crucial for decision making. For instance, Australians may find country-specific advice at Choice.
Unfortunately, information about specific pet health insurance providers in non-western countries, such as Morocco and Algeria is not readily available. However, as pet owners around the world increasingly value the health and well-being of their animals, demand for such services grows. In response, many global insurance providers now offer pet-friendly solutions, and it's advisable to consult with local vets or pet care professionals for more localized options.
We Recommend
We have partnered with Feather Insurance, and can recommend this option to our readers located in Germany. Feather is one of the few providers who have not terminated contracts of old pets and do not plan to do so. They offer coverage of up to €20 million and accept new pet customers up to the age of 9 years. Follow the links below to learn more: