How Does Pet Insurance Work?

dog insurancePeople who own pets usually love them dearly and would not want to see anything happen to them, especially when it comes to their health. This is why a lot of them decide to get pet insurance or, at least, believe that this is an excellent idea. But, at the same time, a huge majority does not understand this concept and fails to realize how pet insurance actually works. Here are the most important facts about getting an insurance policy for a pet and how does it function from the perspective of the policyholder, but also the insurance company.

The Mechanism of Insurance

When it comes to this phenomenon, many think that pet insurance functions in a similar manner as insurance for humans works. But, actually, these types of insurance represent a variation on property insurance policies. This means that in a case of any medical treatment, the pet owner can be reimbursed once he or she submits a proper claim to their insurance company. For example, in the UK, these insurance policies may cover up to 100% of veterinarian costs, but this practice is not universal. In the UK, customers can pay a similar version of insurance to that of a motor option. This means that they pay the excess range of costs, which is usually between £40 and £100.

The US and Canada Approach

In North America, mainly US and Canada, the holders of the pet insurance policies can either pay a scheduled benefit or pay a part of the veterinarian costs. These costs can be covered in a range between 70 and 100 percent, depending on the company and the exact policy that was purchased. In practice, this means that the pet owner covers the costs with their own money, and then submits a claim that asks for reimbursements. But, this process works for small interventions.  Before choosing, make sure to find the best plan for your animal.  ShieldMyPet.com reviews some of the best pet insurance companies and explains the pros and cons of each.

In the case of large bills that come from a lengthy operation or long recuperation periods, most veterinarians will provide the owner with a payment plan that will wait for the insurance claim processing to be completed. In fact, some insurance companies that offer this service pay the veterinarians directly instead of providing the money to their customers, making the process a lot smoother and faster. In these cases, the pet insurance policy is so advanced that it starts to look more like regular healthcare human insurance options.

Types of Policies

Usually, pet owners can choose between lifetime and non-lifetime options. The lifetime option covers a pet during its lifetime so that any condition that might appear in the first year will not be excluded in the later years. The non-lifetime policy covers most conditions during the first year, but these might be excluded in the subsequent 12 months. But, even lifetime policies have some limitations and conditions.

Other Costs Covered By Policies

Pet insurance options do not only cover medical issues. In fact, there are policies that cover things like boarding costs when the animal is left in a pet hotel while their owner is hospitalized or costs that come from retrieving animals that are lost. Thanks to all of these options, it is clear that pet insurance is an interesting and possibly very helpful option for all pet owners.