Before answering the question why buy pet insurance, let’s back it up and answer an even more basic question: Why buy insurance?

Insurance is often thought of as a necessary evil. We are forced by law and by contract to buy car insurance, homeowner insurance, boat and motorcycle insurance. No financial institution will finance a car, home, boat or motorcycle without proof of insurance.

There’s also the type of insurance that everyone will purchase voluntarily, that’s health insurance. Without health insurance many folks are denied medical care because they don’t have the right ‘insurance card’ for the particular health facility they walk into for medical care.

The true purpose of insurance is to make the policyholder whole again in the event of a covered loss or claim. No matter how good or how bad the policy, when something happens, there is a sense of relief knowing that the insurance company is there to offer some type of financial assistance.

Fortunately, our furry little scurrying friends are not subject to the administrative nightmares and the fear of denied insurance claims that their owners are subject to. Pet insurance works a little differently than the traditional health insurance policies for humans (which is a good thing).

When it comes to submitting a claim under a pet insurance policy, the procedure is pretty simple.

1. Seek Treatment: Unlike human health insurance plans, our pets do not require primary veterinarian approval prior to seeing a specialist. Pet owners have the luxury of being able to visit any licensed veterinarian for treatment. The VPI policy for example is portable and covers veterinary care world wide. Therefore, if some unforeseen illness or injury occurs while traveling abroad, the only requirement is that the treating veterinarian be properly licensed to treat the pet.
2. Pay the Fee: Pay the veterinarian for the services rendered. Probably the only downside to the whole claims process is initially the pet owner must pay for services out of pocket.
3. Submit Bills for Reimbursement: Pet insurance claims are paid on a reimbursement bases and not on an indemnification basis. Indemnification is insurance speak for pay on behalf of. In other words, if the policy were written on an indemnification basis, the pet owner would not have to pay out of pocket for services rendered. The insurance company would reimburse the veterinarian directly (similar to human health care policies). Although paying out of pocket may sting at the time of payment, it does make for a much smoother claims process.

Pet insurance policies come in different flavors. There are the less expensive policies that are written with lower annual limits, and the premium policies with higher limits. For example, as of this writing, VPI has a Superior and a Basic pet insurance plan. The Superior pays up to $14,000 annually while the Basic pays up to $9,000 annually subject to policy terms, conditions and deductibles.

PetCare, another provider of pet insurance policies, offers several plans. Each plan is tailored to accommodate the dogs’ needs. For example the owner of a senior dog may select their QuickCare Senior policy, while their MasterCare program caters to purebred dogs.

In addition to providing coverage for illnesses and injuries, many insurance companies offer a type of wellness program where, for an additional premium; the wellness program will pay for a portion of routine well care visits. Just like with humans, an ounce of prevention is worth a pound of cure.

Pet insurance is not something to purchase with little forethought. Take time to compare several policies. Be sure to check the deductibles, limits available and of course premiums charged. When analyzing insurance policies, check with your pet’s veterinarian. No doubt the vet has had experience with several insurance companies and can offer valuable advice.