Animal Insurance Coverage

According to Axis Capital, a group of insurance companies around the world with its main location in Bermuda, in North America alone, $58.5 billion are spent annually for our beloved 4-legged and furry friends. Vet Care being the third largest expenditure in the category costing pet owners to spend $15.25 billion during health check-ups, illness or death of pets.

As the cost of maintaining pets are also getting, well, costly, insurance company also made it a point to take care of our budgets by creating the Pet Insurance Plan to lessen the complaints against the aggregating demand for animal health practices.

Pet insurance pays, partly or in total, for veterinary treatment of the insured person’s ill or injured pet. Some policies will pay out when the pet dies, or if it is lost or stolen.

As veterinary medicine is increasingly employing expensive medical techniques and drugs, and owners have higher expectations for their pets’ health care and standard of living than previously, the market for pet insurance has increased.

Far from the knowledge of people that pet insurance started in America, reviews and reports say that the first pet insurance policy was written in 1890 by Claes Virgin. Virgin was the founder of Länsförsäkrings Alliance, at that time he focused on horses and livestock. In 1947 the first pet insurance policy was sold in Britain. As of 2009, Britain has the second-highest level of pet insurance in the world (23%), behind only Sweden. In 1982, the first pet insurance policy was sold in the United States, and issued to television’s Lassie by Veterinary Pet Insurance (VPI). Developing cities like Singapore, Jakarta, Indonesia, Beijing, China and Tokyo, Japan are also planning to create policies for Pet Insurance in the new future.

Pet Insurance Structure


Pet insurance often has multiple deductibles – one deductible per incident and an annual deductible. In our research, annual deductibles ranged from $100 to $250 per year. The higher your deductibles, the lower the payment so pick a deductible you can comfortably afford.

Tiers of Coverage

Pet insurers structure their coverage in tiers; the higher you go, the more types of problems are included in coverage. Think about your pet’s general health and also whether its breed is subject to characteristic medical issues that could suggest you should purchase one of the higher tiers. Let’s compare two popular insurers.

Veterinary Pet Insurance

Veterinary Pet Insurance, better known as VPI, has three tiers of pet insurance. Its Injury Plan covers injuries, but not illnesses. The Medical Plan, as VPI calls it, covers basic coverage for accidents and illnesses, including cancer. Its Major Medical coverage has higher benefit allowances and covers limited hereditary conditions after the first year.

For more information about the insurance coverage, please see this link or visit our website.


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