Compare Pet Insurance Plans and SAVE
This is where we compare pet insurance plans in nitty-gritty financial detail. And yes… we will admit… this will be dry and for some of you maybe even boring! But you are interested in getting the best pet insurance for your pet aren't you? Well, understanding this stuff will really help you do just that.
In the five charts that follow we compare pet insurance plans from 4 different Pet Insurance companies. Our pet insurance comparison looks at 10 different Insurance Plans. Our comparison covers an 11-year time span. Each of the charts presents varied amounts paid in claims for each of the 11 years.
Of course we must understand the differences in what illnesses and accidents are covered by the four Pet Insurance companies. In addition, Company 2 applies its deductible to each claim while the others apply deductible only once per year. Company 2 has no limit to the amount paid while the other companies have limits of $5,000.00 or less per claim or per year. Company 2 states it will not change the co-insurance or deductible, but can change premiums. The other companies can change co-insurance and other terms in their policies. As always when you compare pet insurance plans you must read each company's policy information carefully and make no assumptions.
In this pet insurance comparison, we are assuming one claim per year in all of these examples.
Notice the claims paid in each of the 11 years in the following charts. Then pay attention to the following numbers in the charts we created to compare pet insurance plans:
Total Cost With Insurance is the amount you would pay if insured. It includes the annual premiums, co-insurance amounts, Deductible amounts and any excess over the limit paid per claim.
Total Cost With No Insurance is the full amount you would pay yourself.
Annual Amount You Overpaid / SAVED is the difference between Total Cost With No Insurance and Total Cost With Insurance.
The chart below shows annual claims submitted for each of 11 years.
In this pet insurance comparison we use the actual claims we had for our Great Pyr Gus in the first four years. The $750 per year for the remaining years are estimates.
In the case of Plan 1 (Company 1) the numbers reflect our real life experience as outlined earlier, for years 1 through 4 including a change of the co-insurance from 80% to 50%. Years 5 through 11 are estimates. For the other companies, we used information from each of their websites and quotes provided by them for a Great Pyr 8 months old. Using the annual claims identified below, here is how we estimate these companies would perform.
To pay for these claims without Insurance you would need to save approximately $100 per month for 11 years.
As you can see, only Plans 2, 3, 4, and 5 actually saved money based on these claims. Let's compare pet insurance plans when the annual claims are smaller.
For the remainder of these charts, the co-insurance percentage for company 1 is set at 80% rather than being reduced to 50% as they did in our real life example.
Here is how these same policies would work if the claims were $500 for each of the 11 years.
To pay for these claims without Insurance you would need to save approximately $42 per month for 11 years.
With claims of $500 per year all of these policies are too expensive.
So next, let's compare pet insurance plans when Claims are $1,400 every year. Here is what happens when the claims are $1,400 per year. Now plans 1, 2, 3, 4, 5 and 6 save you money. Remember that Company 1 has not reduced the co-insurance percentage, however we know based on experience, that it would likely do so. That could result in you over paying by approximately $2,100 to allow them to recover their losses.
To pay for these claims without Insurance you would need to save approximately $116 per month for 11 years.
Are you ready to compare pet insurance plans with two large claims? Read on.
Here's what happens with large claims in year 3 and year 10. We have not adjusted the co-insurance for any of these companies, but we know based on experience, that Company 1 would.
Now plans 1, 2, 3, 4, 5, 6, 7 and 8 save you money.
To pay for these claims without Insurance you would need to save approximately $132 per month for 11 years.
It's interesting what you can discover when you compare pet insurance plans isn't it?
Finally, here is what happens when you have a very large claim in Year 5.
To pay for these claims without Insurance you would need to save approximately $140 per month for 11 years.
In this example with a very expensive claim, it appears that the best pet insurance is the one with no limit on the claim paid, as is the case with Company 2. The other companies pay a maximum of $5,000 or less.
As we hope you can see, it's important to compare pet insurance plans since they all do not perform the same way. Of course it is impossible to predict what your claims will be.
Pet dog insurance isn't always what it appears to be. Here are the facts in our true story about affordable pet insurance became very expensive when our insurance company changed the rules.
When you compare pet insurance plans you will be amazed at what you find. Sometimes it's worth it. Sometimes it's not. Poor choices will be expensive. Do you know what to look for? Let us help you.
Continue to Part 8 - Find the Best Pet Insurance for Your Needs.
Return to Part 6 - Pet Dog Insurance - When They Change Your Policy... A Real Life Story
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