Canadian Pet Insurance - Lottery or Scam? Is it the same in the US?

[Sherri, Sophie, Winston, & Kitty]

I came across this article on pet insurance in Canada and found it kind of alarming. Apparantly all insurance companies in Canada for pets are underwritten by the same company and they go to great lengths to make it impossible to get any reimbursements. The article claims pet insurance is like buying a lottery ticket, the occassional random person might luck out, but the odds are stacked against you.

http://trueler.com/2011/01/25/pet-insurance-review-complaint/ 

 

I know there have been discussions on here before about whether or not pet insurance is worth the money, but I have never seen the 'cons' laid out like this before. I'm starting to question whether or not I should be investing in this insurance. I have PC Pet insurance for Sophie and Penelope (Penny) and wanted to add Winston on too. However, according to this article it is a big scam. They are saying that there is this thing called co-insurance, which will limit the amount I get back and I didn't know about this before.

I haven't yet received any reimbursement from them so it's tough to say at this time how I feel about it. I have submitted the same claims for Sophie 4 times now and they only finally acknowldged receipt of the claim, but it was super annoying that they kept claiming that they had not received anything. That being said it does seem like I will be getting some reimbursed for the giardia, the UTI and the ear infection from the spring, minus the $100 deductible (the deductible is per year and is not per illness). 

 

I also still have confusion about what is covered. I was told that the coverage I have is good for hip displaysia, however this article claims it will not be covered. The insurance company just told me if I want coverage for hip displaysia then I woudl need to go to the higher plan. I don't know what the truth is, and I guess I need to read the policies carefully, but I find this stuff so confusing! Another annoying thing is that every time I talk to them they try to sell me an upgraded policy.  I know they are just doing their job, but it is so annoying to be given a sales pitch every time I call so I am not confident I am getting accurate information.

 

So all this to say, I'm trying to figure out what level of coverage I need for Winston, and questioning whether or not I have the right policy for Sophie and Penny, or if I should be cancelling my policy all together and putting my money in a savings account for them.

 

Here is what I have for Sophie:

Value Plan:

 $2,000 per incident on veterinary services

$2,000 selected illness* over the pet's entire lifetime

$350 for alternative therapy and medical devices per year, per category
  ($100 one-time deductible per year)

Premium

^$ 22¹⁰

monthly

 

I figured since she is young it is much less likely that she will develop any serious illnesses so I can get away with a lesser coverage plan. However, if I were to go up a notch, which is what they are trying to sell me,  this is what I would get:

 

Choice Plan:

$2,500 per incident on veterinary services

$2,500 per illness, per year

$350 for alternative therapy, behavioural therapy and medical devices per year, per category

Premium

^$ 36 ⁵⁵

monthly

 

Ultra Plan: 

$5,000 per incident on veterinary services

$5,000 per illness, per year

$350 for alternative therapy, behavioural therapy and medical devices per year, per category

Premium

^$ 46 ¹⁶

monthly

Priced it all out and if I were to go with the value plan for both dogs, then coupled with the cat's insurance, plus tax, and then minus the 10% discount for insuring 3 or more pets, my monthly cost would be $62.36/month (748.32/year). If I were to put both dogs on the Choice plan: $86.35/month (1036.20/yr), and the Ultra plan would be about $107/month ($1248/year).

Now, I already know I should have gottent the coverage for Winston prior to getting his blood work done so then I would have had his thryoid meds covered, but that is water under the bridge now. Given that his meds are going to cost me about $16/month for the rest of his life, and then add on annual shots, heart worm preventatives, etc, then on top of that is it really worth putting the additional money into insurance coverage?

Would I better off if I were to put $100/month into an emergency savings account for my furry ones? That way I can gaurantee excellent customer service, no hastle with claims and annoying sales pitches, and 100% coverage. Even if I don't have enough in my account at the time of a sudden emergency, there are always other sources, including gong into debt. Would the interest payments on a line of credit be so much worse than years of spending money on the insurance and only getting partial reimbursement?

I am not a mathematician or an economist, so figuring this all out is so difficult - my head hurts!!

Which is the bigger gamble - throwing away thousands of dollars to an insurance scam, or the possibility that one of my dogs will have an $8000 vet bill and I've only got $2000 in my emergency fund?

What do you think? Lottery/Scam or worhtwhile investment?  How do I know?

[Jennifer,Chloe & Myla]

Sorry you are dealing with all this Sherri. This is the argument me and DH have all the time! He thinks having insurance is throwing money away! I am interested in the answers you will get. Don't know much about the policies especially for Canada

[Sherri, Sophie, Winston, & Kitty]

Jennifer, I feel like it's a debate that will never be resolved. I wish there was a clear answer!

[Amy and Lily]

Sherri sure seems like you did your homework.    I am confused as to what would be the right plan for us.  Petplan seems to be where many people have gotten insurance.  I understand your thinking to set aside the money since nobody wants to lose money on scam insurance.  Good luck and I am sure you will find the right choice.

[Sherri, Sophie, Winston, & Kitty]

Thanks Amy. it is really confusing that is for sure. I've done some searches on DK, and it's been helpful, but unfortunately I cannot use any of the recommended companies like Pet Plan or Embrace as they are all US based so a lot of the information and comparison discussions don't apply.

 

I did gather though that most people are generally pro-insurance, if for nothing else then for the 'ease of mind' factor. That's why I got sophie on insurance, it just made me feel better. I am not sure I will get more in approved claims than I've paid in premiums, but we'll see...

[Jane, Guinness and Murphy]

Sherri, I'm not real sure about the Insurance Regulations in Canada.  If Pet Insurance has developed a reputation as being a "scam", I'm guessing that it's different than in the USA.  I don't believe that's the case here, and most people seem pretty comfortable that claims are being pain in accordance with the policy provisions.  In the U.S. each State governs the Insurance Industry.  The States impose regulations and they regularly monitor compliance....some States are much better than others in this regard.  You may want to try to find out if there is a Governing Body that regulates pet insurance in Canada.  If so, then you would want to contact that Agency for more information.  I'll also take a look to see what I can find.

[Sherri, Sophie, Winston, & Kitty]

Thanks Jane, that is helpful. I've never heard of a governing body. And, from what I can determine, there is only a hanful of companies and they are all underwritten by Western Financial, which is a US based company. So strange that there is basically a monopoly on pet insurance. I'll see if I can find out about regulations but my guess if there is such a thing it is based on province just like it is based on the State in the US.

[Jane, Guinness and Murphy]

From what I see online, insurance is definitely regulated and there's even an Insurance Bureau of Canada that appears to be the "liaison" between the industry and the federal and provincial insurance governing bodies.  You should be able to go to your province  and find out which companies are licensed to sell pet insurance so you can do your research on the individual companies (assuming there's more than one).  I'm thinking they may even rate companies (like they do here in the U.S) and they should also have complaint data.  It seems very odd to me that there is only one non-domestic pet insurance carrier.  The IBC has a portal that produces quotes for several different companies.

[Sherri, Sophie, Winston, & Kitty]

Jane, this is wonderful. I checked their site and it didn't seem as though they had any info on Pet Insurance. I've contacted them for more information, we'll see what they say...

[Sherri, Sophie, Winston, & Kitty]

They just got back to me. They don't deal with pet insurance but referred me to the federal government agency that does. I will give them a call later.

[Lisa, Daisy & Dexter]

wonder if Donna and Quincy have insurance up in Newfoundland, she may have a better handle.

[Chelsea and Bailey]

I would love to know what you find out! Im in Saskatchewan and have wanted to get insurance but I have no idea where to start here and who to go with... The ones I have looked at seem extremely expensive per month.

[Sherri, Sophie, Winston, & Kitty]

which ones have you looked at?