Pet insurance is on the rise in the US. Should you buy it for your own furry friend? Veuer’s Matt Hoffman reports.
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00:00More and more Americans are purchasing pet insurance.
00:03According to the North American Pet Health Insurance Association,
00:06over 5 million pets were insured in North America in 2022,
00:09a 22% increase from the year before.
00:12What's behind the rise? It may be driven by rising veterinary costs.
00:16Embrace Pet Insurance President Brian Masseus told Forbes,
00:19several dynamics are driving the increase of vet costs,
00:22including inflation and the pet boom in adoption, which we saw during the pandemic.
00:26So should you buy insurance for your own furry friend?
00:28That depends.
00:30A 2011 Consumer Reports article claimed that in most cases,
00:33insurance would cost more than it paid out.
00:36But some services could save purchasers money in the event of unusually serious veterinary issues.
00:41So, as with basically all insurance,
00:43pet insurance is a gamble on whether or not you'll end up really needing it.
00:47And as with human health insurance,
00:48choosing the right plan is a complicated mess of premiums, deductibles, and payment caps.
00:53But there are some differences.
00:55Pet insurance reimburses you for payments made up front
00:57rather than handling the bills themselves.
01:00And while Obamacare may have made pre-existing conditions a non-issue for humans,
01:04such conditions can still get pets denied for coverage.
01:07So if you're considering signing up,
01:09it might be best to do so when your pet is young and healthy.