How Pet Insurance Works
You insure your car. You insure your health. But what about your pet?
Pet insurance is not new to North America and has been around for over 20 years(!) but surprisingly only 3% of Canadian pet owners have coverage for their pets. As pets become more and more a part of the family, it’s important to understand what pet insurance is, how it works, and why it’s the right fit for you and your pet.
Pet insurance typically reimburses a portion of your veterinary bills. The amount reimbursed varies depending on the plan you choose and what’s eligible for coverage. The super simple short of how pet insurance works is:
But, each provider is different so it's not quite that simple.
Now let's dig deeper into everything you need to know about how pet insurance works. Read on for pet guardians' ultimate guide on pet insurance.
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When you enroll in pet insurance, coverage is simple:
- You visit the vet
Skippy has a limp, so you schedule an appointment and get an exam with your vet. - You pay at the time of checkout
Now that the exam’s complete, you’ll pay your bill at your veterinarian’s office. - Submit your claim for reimbursement
After reviewing your policy and understanding what’s covered and what’s not, you’ll submit a claim form and attach your invoice from your appointment for your pet’s eligible expenses. - You get paid back!
The Claims specialists will review your claim submission and reimburse you for your eligible expenses according to your plan’s coverage details (for instance, excluding any deductibles or co-insurance, or PHI Direct's New Condition Coverage).
Think of pet insurance like travel insurance. You book your flights and hotel, and you’re certain your trip is happening. You may not need it, but it’s there for you ‘just in case’ you need to cancel your vacation, giving you peace of mind.
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Why buy an extended warranty on your washing machine? Often, it’s so that if something breaks, you can stress less knowing you’re protected and don’t need to feel the financial burden of the unexpected expense.
Similarly, you buy pet insurance because you want to transfer that unknown risk to someone else – in this case, the insurance company.
Pet guardians can reasonably budget for the expected costs of pet ownership – vaccines, annual exams, etc. – and, so, pet insurance is for the unexpected pet health expenses that may pop up over the course of a pet’s lifetime.
Pet insurance can help responsible pet guardians avoid making difficult decisions in emergencies. By paying a monthly fee, you ensure that you won't have to choose between your pet's health and financial stability.
Rather than viewing pet insurance solely as an investment, consider it as a way to secure peace of mind. While it's true that your pet may never require extensive medical care, having insurance means you're prepared if the unexpected does occur.
Pet insurance helps ensure that if your pet does require costly treatment, you'll have a better chance of being able to afford it.
It's all about safeguarding your furry friend's well-being and your own financial stability.
Let’s address the elephant – or the Mastiff – in the room. “Pet insurance is a scam.” We hear that A LOT. And we get it. When insurance doesn’t pay out, it’s understandable to think that it’s not legitimate and that the pet insurance company is just trying to make money.
But this is where it’s critical to understand the coverage and policy of any pet insurance plan you’re considering.
Oftentimes, claims get denied – and therefore people feel duped and think pet insurance is a scam – for four (4) main reasons:
Waiting periods: prior to coverage beginning, pet insurance plans will often have specified periods of time that must pass prior to coverage becoming eligible. Typically, there are waiting periods for accidents, illnesses, and cruciate ligament conditions. For instance, PHI Direct has a 48-hour waiting period for accidents, 14-day waiting period for illnesses, and 60-day waiting period for cruciate ligament conditions.
Pre-existing conditions & Associated conditions: this is perhaps the most confusing and least apparent or understood for pet owners. Many pet owners understand the concept of pre-existing conditions, but ailments like allergies (where a pet may be chewing their paws previously, but now has an itchy ear) can often be a point of confusion. You can learn more about pre-existing conditions and associated conditions in our sample policy.
Preventive care, routine care, or wellness: Vaccines, spaying, and neutering typically aren't covered by pet insurance because they're expected routine expenses. For an extra cost, some plans offer "Wellness" coverage as an add-on, but it's important to understand what's included.
Lucky vs. unlucky pets: You might wonder why you're paying for insurance when your furry friend never seems to need it. But remember, you're paying for peace of mind. It's about being prepared for the unexpected—‘just in case’ your pet gets diagnosed with a critical illness, such as cancer—so that you won’t have to make a healthcare decision because of your finances. In short (TLDR;), read the sample policy of any plan you’re considering to understand what’s covered with pet insurance and what’s not covered with pet insurance. Scams begone!
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