Reasons Why You Shouldn't Get Pet Insurance
Willa’s classic head tilt
Pet insurance is a type of insurance that helps cover the cost of veterinary care for your pet. While it can be a good idea for some pet owners, there are also several reasons why you may not want to get pet insurance. Some of the main reasons include cost, limited coverage, pre-existing conditions, exclusions, the claim process, premium increases, self-insurance, and not being necessary. It is important to weigh the pros and cons before deciding whether or not to get pet insurance for your pet.
Personal Experience
First, let’s think about this in just the numbers:
Dog’s average lifespan is 10-13 years, let’s say 10 for ease of math
Pet Insurance at a minimum is $250 per month
Instead of paying an insurance company:
$250 x 12 months per year x 10 years = $30,000
Plus interest!
You should be putting that $250 away each month into a savings account. And if you can add more over time you definitely should.
*If you have a partner and can split this, you only need to contribute $125/month - that’s super reasonable!
My recommendation is to set up a savings account with your personal bank or WealthSimple:
WealthSimple Savings accounts have an amazing User Experience
Now let’s say you buy pet insurance and make your first claim. Trupanion is a popular option so let’s say you go with them. Great customer service!
Their base plan is $250/month and it only covers 90% of the covered services. A vet visit is not one of those services, see line item $94.
That month you paid $250 into your pet insurance
Then your vet bill comes and it’s $794.10 total with tax
Looks like Trupanion is only going to cover $371.03
You paid Trupanion $250 that month & the vet $794.10 = $1,044.10. But you only get $371.03 back… Seems like a bit of a scam, doesn’t it?
If you can afford to pay $250 to the insurance company, you can afford to put it in a savings account and not touch it until your pup needs it.
Here are some more reasons you shouldn’t get Pet Insurance:
Cost: Pet insurance can be expensive, and the monthly or annual premiums can add up over time.
Limited coverage: Some policies may not cover certain medical conditions or treatments, or may have limits on the amount of coverage provided.
Pre-existing conditions: Many pet insurance policies will not cover pre-existing conditions, which can be a problem if your pet is already sick or has a chronic condition.
Exclusions: Some policies may exclude certain breeds or types of animals, and may not cover certain types of injuries or illnesses.
Claim process: Filing a claim can be difficult and time-consuming, and may require a lot of paperwork and documentation.
Premium increases: Premiums can increase over time, which can make it difficult to budget for and afford pet insurance.
Self-insurance: Some pet owners may choose to self-insure by setting aside money each month to cover potential veterinary expenses, rather than paying for a pet insurance policy.
Not necessary: Many pet owners may not need pet insurance because they are able to pay for veterinary care out of pocket.
**Of course I must say if you get a pup breed with common health issues you may have read about that might amount to more than $30,000 then the insurance is worth it. Especially the early stages of puppy life may incur more costs and at the end of their life.
It is important to consider your own financial situation, your pet's health and breed, and your ability to pay for unexpected veterinary expenses when deciding whether or not to get pet insurance.