Unexpected visits to the vet can cost thousands of dollars, and for many people it can mean a significant financial burden, or difficult decisions to be made about treatment for their beloved pet.
Some feel that they are not getting value from their insurance if they are not getting back more (or at least the same) as they put in. But that’s not how insurance works – and there is really no one answer to the question of whether or not pet insurance pays off – as it always depends on individual events and circumstances.
Simply put, insurance (all kinds) works through the concept of “pooling”. So all the premiums from all customers is put together, so that when there is a claim on a policy, the funds are taken from the pool. So in this way, each pet owner (policyholder) who does not claim in a year (for example) is assisting other pets who unfortunately had an event that required vet care. Of course the tables can turn, and those who have not needed money from the pool in one year may need it in another year. So this is why sometimes pet parents can feel as though they are paying out but not getting anything back, but others are very happy to be receiving reimbursements on their vets bills.
At the end of the day, it’s not really a financial question and it may sound corny, but with pet insurance you are buying peace of mind – knowing that if the unexpected happens to your fur friend, you will be able to give your pet the very best of care, and manage the vet’s bills, without being faced with difficult choices.
With pet insurance many customers do get out more than they put in, but that’s not always the case – depending on how lucky (or unlucky) your pet is with respect to contracting an illness, or getting an injury.
Information current as of 28 July 2017.
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