With the increase in availability of pet insurance policies in North America, pet owners can choose to cover their beloved pets with insurance, and have more choices in the type of coverage they can purchase for their beloved pets. Although in general, choice is better, it can be confusing to select the most appropriate policy.

Statistics from the United States show that there are currently close to 750,000 pet insurance policies, compared to approximately 200,000  policies in 2002. The number of pet insurance claims that are made exceed the number of claims for either automobile or homeowner insurance. In spite of these increases, in 2006 less than 1 percent of the estimated 163 million dogs and cats in the United States were covered by pet insurance. This is in contrast to coverage rates of between 20 and 50 percent of the pet populations in many European countries. Pet insurance is particularly popular in countries such as the United Kingdom and Sweden.

There are a number of reasons for the rise in popularity of pet insurance. More insurance companies are offering pet insurance, which makes for competition and improved consumer awareness. On the part of consumers, insurance is appealing for several factors, including a change in the role of pets in the family and an increase in the life spans of dogs and cats. According to the American Veterinary Medical Association, 16.9% of cats are 11 years or older, increased from 13.3% just five years ago; similar increases are reported for dogs. Many pet owners consider their pets to be part of the family, and want to be able to provide the same level of health care to their dogs and cats as they receive. Veterinary treatments have become increasingly more sophisticated and more costly, as advanced diagnostic and treatment options and more veterinary specialists and referral hospitals have become available.  

When choosing a policy, veterinary clients should consider the company’s reputation and experience first and foremost. According to Proctor and Gamble, more than 50 pet insurance companies have gone out of business in the United States in the past 20 years, and only a handful have survived more than a few years. Next, the veterinary client needs to determine what the policy includes or excludes (many policies limit or exclude coverage from recognized hereditary conditions in certain breeds), what the benefit schedules are (i.e. whether there are maximums for any one illness or injury and whether this amount is reinstated annually), whether premiums increase after a claim (called the experience rating), and what sort of deductible or co-payment rates are offered. Many pet owners look to their veterinarian for help in selecting the most appropriate policy for their pet. If you, as a pet owner, would appreciate some help or advice, do not hesitate to contact us.