Pet insurance: Fact and fiction

Pet insurance: Fact and fiction

A study by analyst John Volk on behalf of the North American Pet Health Insurance Association uncovered some key findings that may surprise you—and some you likely knew all along.
 
Dec 06, 2016
By dvm360.com staff

Source (all charts): 2016 Driving Growth of Pet Health Insurance Research Report, NAPHIA

Pet Health Insurance is Never an Investment

The fact that John Volk's well researched article has revealed that many pet owners and veterinarians consider pet health insurance to be an investment is disturbing, but not surprising. Investing money has an expectation of a profitable return as in interest earned or an appreciation in value. If the expectation is not met, the logical conclusion is usually that the investment was “bad”. Expecting a favorable return, many pet owners, veterinarians, and various detractors have calculated premiums invested compared to cash benefits received and concluded that pet insurance was a bad investment. Nobody assesses paid automobile collision insurance premiums against the benefits paid and then decides whether insurance is “worth it”. When a person buys either car insurance or pet insurance, they are buying peace of mind hoping they will never need to file a claim. Unlike collision insurance, pet peace-of-mind includes the emotional elements, “helpful”, “love”, “responsible”, and the avoidance of “painful choices” described in the article. All of these terms emphasize why it is important for veterinarians to proactively educate and encourage pet owners to insure and protect the bond they have with their pets. In doing so, it is important that the many benefits of pet health insurance are accurately presented to avoid inflated expectations.