Comparing the 4 Types of Pet Health Insurance

While it is widely understood that different pet insurance companies and plans offer different "bells and whistles", it's less known that pet insurance can appropriately - albeit unofficially - be categorized into distinct plan types.

This "narrowing down" of your options is a big first step towards deciding which plan is right for you. Based on their plan provisions, most pet insurance plans can be funneled into one of four distinct types, including:

1. Traditional - Standard pet insurance plans with predetermined plan design options that cover pet illness, accidents and often preventive care. Based on your chosen plan design, your insurance company will pay all or part of your vet bills up to a certain amount.
2. Customizable - Just like standard pet insurance except it offers more freedom in terms of "mixing and matching" plan design provisions such as deductibles, copays, coinsurance percentages and annual maximum coverage amounts.
3. Accident Only - As the name implies, these plans only cover accidents. There is no coverage for illnesses or preventive care.
4. Discount - When you take your pet to a veterinarian or hospital that is in the insurance company's network, you will receive a discount on the services provided. These plans typically have few if any caveats (i.e. "fine print") outside of needing to see an innetwork vet.

Which type of pet insurance is appropriate for you depends on a number of factors, including:

• Your budget - As with most things in life, you get what you pay for with pet insurance. You're likely to pay a lower monthly premium with Accident Only and Discount plans, but a vet visit will probably cost more. Traditional and Customizable plans offer much more comprehensive coverage when your pet is injured, gets sick or is due for a preventive visit.

• The age of your pet and whether there are any pre-existing conditions - Traditional and Customizable plans will not accept new pets after they have reached a certain age nor will they pay for treatment related to a pre-existing medical condition. This is usually not the case with Accident Only or Discount plans.
• Your pet's breed - Some plans exclude certain conditions which can be an issue for some pre-disposed breeds. This usually doesn't apply to Accident Only or Discount plans, but it does apply to Traditional and Customizable plans. Some Traditional and Customizable plans also deny coverage altogether for certain breeds.
• Your veterinarian - Discount plans are usually the only kind of plan that requires your vet to be a part of their network (in order for the discounts to apply). If you are interested in this plan type, find out if your vet currently belongs. If they don't, it's possible (and common) to get them to join as long as the insurance company's required discounts fit within your vet's pricing model.

To sum things up, generally speaking, Traditional and Customizable plans will cost more on a monthly basis but will cost much less if your pet gets sick or injured. Just how much you have to pay either way will depend on the plan design you choose. If you have an old or sick dog, spend time reviewing the fine print of these policies to determine whether your pet or their specific conditions will be covered.

Accident only plans are most appropriate for sporting dogs or very active dogs that tend to get in harm's way. Only purchase this type of plan if you're prepared to foot the entire bill for illnesses and preventive care.

Discount plans are a good option for pets that are otherwise uninsurable and for those trying to save money on a monthly-bill basis. During healthful and injury-free years, this plan type will save you money. If your pet has any problems, it's likely that you'll pay more.

Disclosure: Jeff Quinlan is the Founder and Editor-in-Chief of the Organic Pet Digest Natural Dog Care Guide.

Suggested Reading:
Pet Insurance Reviews: Deeper Dive into Comparing/Contrasting Pet Insurance Plan Designs