The ultimate pet insurance guide. Is pet insurance worth it?
My personal preference for pet insurance is to run my own, little insurance policy by saving money. I like to be independent. I like to manage my own affairs and I don't want to rely on an insurance company. I've become distrustful. I think that problem applies to a lot of people. The world is becoming less trusting. That's not to say there aren't some good insurance companies. And also pet insurance can really benefit some people and some pets.
But you have to realise that pet insurance is about risk as set against reward. Insurance spreads the risk. You might be a winner or a loser. What you will certainly be is a person who has peace of mind. And if peace of mind is important do you, and if you have the money, then go for pet insurance.
Also certain breeds of dog and cat are more likely to need pet health insurance because of inherent health issues. It's a bit sad, though, that during the coronavirus lockdown, French bulldogs have become particularly popular because they're cute looking and small. But the people who adopt them don't do due diligence to understand that this breed has inherited health problems. They are a good example of where pet insurance would probably be useful. However the sort of people who have been adopting dogs, some would say impulsively, during the lockdowns are not the sort of people who would consider pet insurance.
Like many things, there are pros and cons to pet insurance. One advantage is that you can get top notch veterinary care provided the policy covers it. Whereas if you are paying for yourself you're more likely to try and reduce the costs. This may reduce the standard of care which goes against the welfare of your pet. But this scenario has a downside as well because it can force up pet insurance premiums. Perhaps veterinarians charge more or do more if they know they're being paid through an insurance policy i.e. the customer is being reimbursed by their insurance policy. Ultimately this backfires on the policyholders.
Distortions can get into the pet insurance business. You might argue it is inherently a slightly unnatural process which encourages these financial distortions. And ultimately the reason why pet insurance exists is to make money for the insurance companies. But for that obvious fact they wouldn't exist and therefore overall it is bound to be more expensive than if you pay for veterinary fees out of your own savings. This is because you are also paying for a profit margin to the insurance company which can only be achieved after they pay their expenses and overheads.
Pet insurance is arguably too expensive and unaffordable to a large number of cat and dog owners. Many cat owners for example are people who don't have a lot of money. They are often single, living alone on quite meagre incomes. They are great people and often independent-minded people. But the lack of funds and being independent minded results in a lack of desire to buy pet insurance.
My personal opinion is that insurance companies do indeed provide a service which is helpful to many people but they can do better. Their products should be more attractive to a wider section of society. Is pet insurance worth it. See the video. I've not watched it! The answer is YES to the right person and their pet. It is about matching product to pet and pet owner.