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Is Pet Insurance Better Than A Savings Account?

6/10/2017

Watch the video below illustrate the difference between having a savings account for pet healthcare costs, or if it is better to have a pet insurance plan. 



You may have heard from other pet parents that a savings account is better than paying for pet insurance. Here at PetFirst, we want to prove to you that pet insurance is actually better than a savings account.

Let’s walk through a year’s comparison between your cost with a pet insurance plan and your friend’s cost with a savings account.

Your friend has decided to put the same amount of money you spend on your monthly premium into a bank account. She’s putting $33 each month in a saving’s account for her dog’s vet costs.

Fast forward 6 months. Your friend is really bragging. She’s saved $198.00 and you have spent $198.00!

Vet Visit #1

Uh-oh! During the 6th month your dog and your friend’s dog eat something they shouldn’t and become ill. You both take your pets to the vet where they are diagnosed with gastritis. Each of you receive a bill totaling $463.60 for diagnostics and treatment at the vet.

Your friend has to spend the entire $463.60 out-of-pocket. While you paid the vet for the entire bill, you received $327.24 in reimbursement from your pet insurance for your approved claim. So you only spent $169.36 in total for your dog’s treatment.

Ending the month, you’ve spent $599.96 on pet insurance premiums and veterinary care, while your friend has spent $463.60. She still seems pleased with her decision, and you are too knowing you received money back from your vet expenses.

Your pets are healthy the next 5 months, and no one requires a trip to the veterinarian. You keep paying your monthly premium, and your friend keeps putting $33 in a savings account.

Vet Visit #2

Uh-oh! In the 12th month both of your pets get into trouble again. They accidently swallow pain medicine they found on the floor, and have to go to the vet. This time, the bill is a bit more expensive at $1,672.72. Lucky for you, you don’t have to worry because you have pet insurance and will be reimbursed $1,415.45. Unfortunately, your friend will be responsible for the entire vet bill of $1,672.72.

Let’s Recap

Your friend managed to put $396 into her savings account for the entire year. But, her dog ended up with $2,136.32 in vet expenses. So, she had to find $1,740.32 from another account to pay for her pup’s health care.

You made the decision to spend $396 on pet insurance premium for your dog for the year. Even though your pup racked up $2,136.32 in vet care expenses, your pet insurance company reimbursed you $1,742.69. Which means you only paid $789.63 for your pup’s health care. You ended up saving $950.69 on your dog’s veterinary costs compared to your friend.

SavingsVsPetInsurance_Teaser-(1).png
 
 
Savings Account        Pet Insurance  
Savings: +$396.00   Premium: -$396.00
Vet Costs: -$2,136.32   Vet Costs: -$2,136.32
Insurance Reimbursed: $0.00   Insurance Reimbursed: +1,742.69
Expenses: -$1,740.32   Expenses: -$789.63
       Savings: $950.69

 
So, the next time you have a conversation with your friends about pet insurance, remind them pet insurance is a financial safety net for the unknown. It takes time to save up money, and you’ll never know when your pet may need access to that money for a veterinary expense.

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