Is pet insurance worth it with rising costs?

General Forum
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Is pet insurance still worth it with rising premiums and exclusions?

I live in Oregon and have a 4-year-old Pembroke Welsh Corgi. Since we got him in 2020, we’ve been with Trupanion, but their premiums have gone up significantly from $48 to $98 this year ($48->$58->$68->$98). This 100% increase seems excessive, even accounting for the high inflation rate. It’s actually more than what I pay annually for both my car insurance and my company-provided health plan, which offers much broader coverage.

Additionally, Trupanion doesn’t cover wellness exams, vaccines, or diagnostic exams, and we face a $250 to $500 annual deductible plus 20% co-insurance. This is baffling since many diagnostic exams are covered by human health insurance.

I did a rough calculation comparing the cost of the insurance premiums against the potential savings for unexpected emergencies, and it seems like we’d end up with a significant amount of money if we didn’t have the insurance. While unforeseen circumstances in the early years could mean higher out-of-pocket costs, even saving 30% annually would still leave a substantial amount. I’ve only factored in insurance premiums here since expenses like wellness exams, vaccines, diagnostics, and deductibles are still out of pocket.

Does this calculation make sense, or am I missing something? I can share the full spreadsheet if anyone is interested.

Edit: I also forgot to mention the long pre-existing condition clauses and waiting periods, which make switching insurances nearly impossible if there have already been medical issues.

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I decided against Trupanion because I heard they continuously increase their rates. Instead, we have MetLife.

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Thanks. In hindsight, I probably should have done more research on them.

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Just to clarify, the sheet indicates that you paid $11,000 in premiums over 10 years, correct?

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The total premiums would amount to approximately $9,300. This is based on starting at $48 per month with a minimum annual increase of 10%. However, my insurance premiums have actually increased by around 20% over the past three years.

The $11,000 figure represents the final amount if we assume a 5% annual growth rate on that money.

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I know someone who ended up spending $4,000 because their cat swallowed something it shouldn’t have. So, if similar issues happen a few times, spending $9,000 might be worthwhile @Flippa.

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Absolutely, I agree, it makes sense for some pets. However, if you didn’t have insurance when the issue first arose, pet insurance companies often include a pre-existing condition clause, meaning they won’t cover any future occurrences of the same problem. This makes it nearly impossible to switch to a cheaper insurance plan.

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I’ve run the numbers myself but keep hitting uncertainties based on my own experience. In the first year with my Yorkie, she needed an MRI, specialist visits, and various diagnostics for a potential liver shunt, which amounted to thousands of dollars covered by her insurer, Embrace. She also required luxating patella surgery on both legs. Over her first four years, her bills totaled around $9,000.

It’s similar to other types of insurance. You have to weigh the risk of potentially facing large bills on your own, especially in the early years of your pet’s life before you’ve built up significant savings. Can you save up that money, or will you need to use it for other expenses?

Corgis, for instance, are prone to costly health issues like IVDD or hip dysplasia. You might be fortunate and avoid these problems, or you might not. Reading forums about IVDD or hip dysplasia reveals people struggling with tough decisions about surgeries because they can’t afford them, it’s a tough situation.

Vet costs have risen by 30% since 2020 and show little sign of slowing down. You need to consider how much illnesses and accidents might cost now and in the future.

While your company might cover a significant portion of your health care premiums, many people still pay hundreds per month for their own insurance. Pet insurance, on the other hand, is more like property and casualty insurance, treating pets as property that can be insured against loss, similar to your car or home.

Vet costs can be unpredictable, you might go years with just routine care, then suddenly face a costly surgery. For example, IVDD surgery can now cost nearly $10,000 with diagnostics, and hip replacements can be $6,000 to $7,000. An MRI is around $3,000.

Ultimately, it comes down to how much risk you’re willing to accept and what you’re prepared to spend on vet care. In today’s climate, you could easily spend hundreds or thousands in a single emergency visit. What if you deplete half or more of your savings when your dog is 5 or 6? For me, it’s not worth the risk, especially with high-risk dogs. I’ve crunched the numbers for two dogs who have passed away and broke even with one and came out ahead with the other. So when I got a new puppy, I opted for insurance again. I might end up losing out this time, but I sleep better at night knowing I’m covered.

Pet insurance, like many other types of insurance, is about managing the unknown. Some people are comfortable taking on higher risks, like choosing state minimums for car insurance or high-deductible health plans, betting they won’t need them. Sometimes you come out ahead, and sometimes you don’t.

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A friend of mine had to pay $15,000 out of pocket for emergency IVDD surgery when one or more of their dog’s discs slipped. Luckily, they had a savings fund to cover the cost. When I got my own dog, I decided right away that I wanted insurance to avoid finding myself in a similar situation.

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$15,000! That’s incredible; I knew costs were rising, but that’s quite a shock. I really hope they find a way to prevent IVDD soon, it sounds both awful and traumatic.

I took a look at your pup, and she’s absolutely gorgeous. Give her some extra pets from me and let her know she’s too pretty for IVDD :joy:

Wishing you all the best! It’s great to hear you have insurance.