Parsing Pet Insurance

The American Pet Products Association is the authoritative source for much companion animal data, and according to its 2017 figures, 68% of households in the United States included a pet, and $17.07 billion was spent on veterinary care (a 7% increase from 2016, with another 7% predicted for 2018). In light of these numbers, and with the cost of vet visits rising, the growing popularity of pet insurance is not at all surprising (the first pet insured in this country was the TV dog Lassie, in 1982). This trend makes me curious about the policies available, and under what circumstances they make the most sense.

By way of context, the North American Pet Health Insurance Association describes an industry that “continues to outpace most other […] insurance categories,” and it supports this assertion with 2017 data showing that 1.83 million pets were covered in the United States (up 17.5% from 2016), either by an accident and illness or embedded wellness plan (average annual premium of $516), or an accident only plan (average annual premium of $181). Experts see this strong demand as a result of converging economic and demographic factors, among them being the “pets as family” ethos that now guides so many owners.

Those considering coverage will find many providers (the top rated appear to be Trupanion, Healthy Paws, and Figo) offering many options. Yet as the American Veterinarian Medical Association notes, “insurance isn’t for everyone,” and some may be better served by setting aside money for an emergency pet fund. I see reasons both to insure or not, but regardless of how it is funded, what matters is that animals receive the care they need if a situation arises.