Weighing the Costs

However, not all organizations feel that pet health insurance is worth it. For example, Consumer Reports analyzed the costs associated with a reasonably healthy 10-year-old beagle named Roxy and found that the cost of pet insurance didn't make it worth the money. They say that it doesn’t economically translate unless a pet requires costly care. 

In the research process, Consumer Reports looked at the benefits of several different pet health insurance companies, including ASPCA Pet Health Insurance, 24 Pet Watch Quick Care and VPI. They note that the parent companies of these options comprise about 90 percent of pet insurance policies. They also analyzed a newer company called Trupanion. 

They compiled all of Roxy’s vet bills throughout her life and translated the amount to what it would cost in the present market. These included three different emergency room visits, two dental cleanings in which she received anesthesia, and any infections or issues for which the dog required treatment. The insurance companies then were asked two questions: How many of these costs would be covered, and what it would cost to insure her throughout her life? 

What they found is astonishing. Of the nine policies analyzed, not a single one would have added up to the premiums paid. That said, the scenario changed when a number hypothetical health issues were added. At this point, the return on investment increased.  

This is when knowing what you’re buying comes into play. If you do purchase pet health insurance, experts say that you need to read between the lines so that you know what will and won’t be covered if you make a claim. And reading these details can make for a tedious task.