More pet owners are using insurance to save on veterinary costs

It's been a rough two years for Freya and Kodiak, complete with surgeries, thyroid problems, allergy serums and medications.

But what could have amounted to a more than $7,000 medical bill for the two German shepherds was cut in half thanks to their owners' pet insurance policy. The Martin family opted for a plan that allowed them to pay an $800 annual premium for the two dogs. They pay the fees and then get reimbursed on half the costs.

Cheryl Martin said the money was well spent, especially considering everything the dogs have endured in recent years. Both dogs have inhalant allergies that require medication, Freya had to have surgery for her eye and Kodiak is recovering after an operation on his joints.

"As you can imagine, any surgery with a dog is not cheap," Mrs. Martin said. "You just don't know, when you get a dog, what's going to happen in the future. Accidents happen and a lot of times dogs get hit by cars and need surgery. And then you wish you had (insurance)."

More pet owners are following the Martins' example and exploring coverage options for their furry friends.

A recent survey from VPI, one of the companies offering coverage, found that out of the roughly 465,000 customers they have, 13,545 were started in Maryland last year, ranking it 10th in the country for the company's new enrollments. There were 428 VPI policies started in Annapolis last year, according to the company.

In 2005, $175 million was spent on some form of pet health insurance, and that figure rose to nearly $300 million last year, according to the North American Pet Health Insurance Association.

The organization was formed last year in Kansas City and has five member companies in the United States and Canada that aim to process claims within 10 business days. Members include ASPCA Pet Health Insurance, which provides a 10 percent savings on multiple pets, and Pets Best Insurance, which pays 80 percent of the medical bill after the deductible.

But the insurance isn't for everyone, as Glen Burnie resident Lisa Gilmore learned. She bought her cat, Kitty, about seven years ago and signed up for a $20 monthly plan through Banfield, The Pet Hospital. The company provides 50 percent savings on office visits, as well as other discounts.

But Kitty would become too angry during visits to the veterinarian and often had to be sedated. She said the experience became so trying for both her and the cat that she stopped bringing it in as often. So she ended her plan two years ago.

"Since I wasn't going on a regular basis anymore, it didn't seem right to spend $600 to $700 (on an insurance plan) I wouldn't be putting to use," Mrs. Gilmore said. "If you have an indoor cat like I do, you won't get the same amount of shots that you would with a cat that's going inside and outside. Even now with the rabies shots, it's so traumatic (for Kitty), I only get them every three years."

Officials said the increasing interest in pet health insurance can be tied to increasing veterinary costs, as well as the tough economic times.

"Pet health insurance is cropping up more (because) in the past, (the solution to high costs) has been somebody's credit card," said Darryl Rawlings, president of the North American Pet Health Insurance Association. "If you get a $5,000 hospital bill, what do you do? You put it on a credit card. Non-pet owners will say, 'Just get another cat or dog.' They don't understand that you don't get another wife or child, and you don't just get another best friend."

Mr. Rawlings advised anyone considering pet health insurance to do their research first. It is important to learn not only the price of different plans, but also the company's process for disputes. It also is best to get the insurance when the pet is young, before it develops any health problems.