A common question I get from new puppy owners is should I buy pet insurance and what kind. The honest answer is this is more of a financial question than anything else. Some questions to consider:
1) Do you know the history/ background of your puppy or dog? An unknown history is always a risk for health complications. You can do a DNA health check, like Embark, to get some answers, but of course this is not a complete check of all genetic issues possible in a dog.
2) Are health issues common in the breed? https://www.forbes.com/advisor/pet-insurance/dog-breeds-highest-risk-health-problems/
3) Can you afford a $2,000-$3,000 vet bill? If you are able to set $3,000 aside in a savings account for emergencies, this is my favorite option and really takes away the need for pet health insurance.
If your puppy is coming from a reputable breeder and the breed is not known for having many genetic health issues, then I suggest putting the premiums you would be spending into a High Yield Savings account, like Ally Bank. Let’s go with $30 a month, auto-drafted from your account, and you will be saving up $360 a year that will grow interest. Of course, you must have the financial discipline to not use this money for vacations or non-pet emergencies.
My experiences with Vet Bills:
Outside of Vaccines and Breeding related trips, we are very rarely at the vet. I would say the #1 health issue people would have with our puppies specifically is an ear infection. Most puppies get it once or twice within the first 4 years of life, but if you have a reasonable vet, this should be a $150 or less vet bill. The most expensive “common” procedure is ingestion of a foreign body. Puppies can eat socks, toys… well basically anything. Vets will not go directly to surgery, but if they must go to surgery, you could be looking at a $1000-$2000 bill from my experience. The most common costly medical expense over time is allergies. Cytopoint injections can run $100-$200 each and can be needed every 4-8 weeks.
How Insurance Works:
Every company is going to do it a little different, but most are flexible and your selections will decide your Premium. For beginners I will briefly review the basic terms.
Premium: What you will pay the company every month no matter what. Expect it to range from $20-$60 a month per dog.
Deductible: The amount of vet bills you must cover yourself before the insurance will pay anything.
Annual Limit: The maximum amount the insurance company will pay per year.
Reimbursement Rate: The percentage of the covered amount the insurance will reimburse you for.
Scenario: Let’s say you have a $20 a month premium, deducible of $500, Limit of $2,500, and reimbursement rate of 80%. Your puppy is healthy all year, but in December swallows a bunch of socks and needs a $1000 surgery. What will you have paid total this year and what will insurance pay? Insurance is going to pay $500 to the vet because that is the bill minus your $500 deductible. You will have paid $240 in premiums plus the $500 deductible to the vet, resulting in a total of $740 for the year. As you can see, pet insurance really only makes sense if your puppy or dog is prone to accidents or health issues.
Summary: Once again, if you are worried about your pet’s medical expenses my top recommendation is just saving money aside for emergencies. The exception being if your specific puppy or dog is prone to accidents or illness, or if the breed is known for genetic issues.
Which Pet Insurance Company to Use?
As I have no experience using them, I can not give an official recommendation. Do your own research. Check out NerdWallet: https://www.nerdwallet.com/article/insurance/best-pet-insurance-companies