Thousands of dog owners decide against pet insurance and instead put money aside each month. In theory, this sounds like a sensible alternative, and for many people it will work perfectly fine. However, a 2006 article from the Veterinary Clinics highlighted the problem with this approach.
It is fine if you are saving a serious amount of money each month or year, but if you are saving just a small amount you may run into trouble. Putting money aside will cover small problems and routine treatments, but if your dog is seriously and unexpectedly ill, you may come up short. Some conditions require a number of expensive surgeries in a short space of time, and suddenly you’ve spent over $10,000. If the problem requires medical care for the rest of the dog’s life, the amount you’ve saved up may simply disappear in no time at all.
Again, in theory, this sounds like a good idea, but in practice, this will cause problems. Your first problem is that many insurers won’t insure dogs over a specific age. But secondly, your premiums when you join with an older dog may be significantly higher.
The other issue with this approach is that a huge number of dogs come down with serious illnesses and diseases before they get old. This could leave you with a sudden vet bill of over $5,000 dollars and a real challenge to get the money needed together in time to ensure your dog gets that life-saving treatment.
People simply do not realize quite how different policies can be. If you pay less for your policy, chances are you’re getting less coverage when you need it most. The problems associated with this approach were eloquently highlighted in the journal article, ‘Equilibrium in Competitive Insurance Markets.’ You might have a significantly higher excess to pay if something goes wrong, or the policy might not cover the one illness your dog has come down with.
Reading the small print can be time-consuming and boring, but it could make all the difference! If you’re spending serious cash on a pet insurance policy each month, it is vital you get one that is going to meet your needs and circumstances. If you are unsure of which policy to go for, there are a number of free comparison websites that can be found online.