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What are the top 5 issues that users faces when buying pet insurance for their dogs?
Hello! Thanks for your question about the top 5 issues users face when buying pet insurance for their dogs . The short version is that while there is no pre-existing list of issues consumers face when buying pet insurance for their dogs, I was able to compile such a list myself by reviewing many sources. The top issue facing consumers when buying pet insurance is whether such insurance is even necessary. Following that, the other four reasons all relate to the need for consumers to research heavily before making a decision on the best and most cost-effective plan for their dogs. Below you will find a deep dive of my findings.
METHODOLOGY
I began by searching for articles and consumer reports on the top issues consumers face when buying pet insurance for dogs. There were many articles designed to help consumers choose whether or not and how to purchase pet insurance. However, I made sure to target my search on the issues people face when in the process of buying pet insurance for dogs rather than the considerations they make when choosing a plan. I was unable to find a pre-existing list of issues consumers face, so instead I reviewed many articles and picked out the major issues that emerged from that research. I ranked them from 1-5 (1 being the most common) based on the prevalence of those issues across multiple articles and consumer reports.
FINDINGS
BRIEF OVERVIEW OF PET INSURANCE
Pets are living longer, partly in thanks to "life-saving - and expensive treatments." However, whether an owner should buy pet insurance depends greatly on the overall condition of the pet and the owner's finances to determine if the "trade-off" is a sound financial decision. Both Time and Consumer Reports suggest that keeping money aside yourself may be a better option than paying for costly premiums. Consumer Reports crunched the numbers and found that for a healthy pet, the cost of premiums was greater than cost for medical care. However, for a dog with regular health problems, pet insurance is worth the peace of mind and money.
Like other insurance, pet insurance for dogs varies widely in terms of what it costs and covers. In addition to veterinary fees, common items include: theft and loss of a pet, "treatment for behavioral problems," death by injury or illness, liability coverage for incidents caused by the owner's dog, "kennel fees," emergency medical treatment. General veterinary cots, congenital and hereditary conditions, ongoing or long-term conditions, dental care, homeopathic medicine, and costs due to breeding risks and pregnancy can be covered but at additional cost. According to the Money Advice Service, paying for unexpected and expensive veterinary bills it the top reason why people purchase pet insurance.
ISSUES PEOPLE FACE WHEN BUYING PET INSURANCE
1) IS IT NEEDED?
Multiple sites indicate that a leading issue people face when buying pet insurance is whether they even need it in the first place. Given that pet insurance costs and coverage depend greatly on the health, age, and breed of the dog, consumers and experts are not sure if its necessary. Moreover, simpler methods to pet insurance like saving money directly or purchasing a health discount plan that provides discounts on most veterinary care also cause consumers to wonder if they need pet insurance at all. For this reason, Consumer Affairs offers a "simple quiz" to help consumers determine if they would benefit from having pet insurance.
Controversy over whether pet insurance is necessary extends to experts. Some aliken it to any other insurance; consumers buy it to minimize risk and its there if they have to use it. Spokesman of the pet insurance company VPI, Grant Biniasz, states that pet insurance is not the same as a savings account, "It's a way to manage risk... If you look at any form of insurance and try to run the numbers, you’re going to find that most people are not going to get back what they pay in premiums. But the people who do are happy they made the investment.”
RESEARCH, RESEARCH, RESEARCH
The next four issues all relate to a central problem for consumers- the need to research heavily before picking a plan to ensure that they are selecting the best and most cost-effective coverage.
2) VAGUE AND SCATTERED INFORMATION
Frances Wilkerson of the blog Pet Insurance University terms the search for pet insurance as being "overwhelming" and "confusing," because most of the information is "vague" and "scattered" in multiple places. In particular, she points out that consumers struggle to even know where to begin especially when much of the information is in necessarily-biased company marketing materials. As such, she created a tool with organized and deeply-researched information for her clients.
3) COMPARING COVERAGE
Even after organizing and finding the best sources of information, with so many options to choose from and scenarios/conditions to cover, the paradox of choice is certainly a problem facing consumers when buying pet insurance. I found multiple articles designed to help consumers decide on which pet insurance to purchase for their dogs. Here is a sampling of the plethora of considerations consumers must make:
- How a plan's payment and claims structure works IE the ratio of premium to deductibles, co-payments, and whether claims are directly paid or reiumbursed.
- The age of the pet, as it is generally best to buy it as early as possible- around 7 weeks. Many companies do not allow new plans for dogs over age 10.
- Whether a plan is all-inclusive or "economical" IE covers just accidents and illnesses or covers small issues. This decision affects both the price and company chosen. For example, HealthyPaws covers accidents and illnesses, but does not "offer any wellness or routine coverage." Whereas, Embrace has many add-ons that cover most problems.
- Caps or the maximum amount of money that can be received. For instance PetPremium's incident cap is $5,000, PetFirst's has an annual cap of $20,000.
- Will premiums increase following renewal. According to Pet Insurance Guide, "unfair renewal premium increases" is the top complaint about pet insurance.
- If the consumer's employer offers pet insurance as a benefit. According to Consumer Reports, one third of Fortune 500 companies offer pet insurance as a benefit.
- Whether discounts are available. For instance, HealthyPaws offers 10% off for AAA members, while PetPlan does the same for AARP members, military personnel, and veterans when they sign up online (5% if they sign up in store).
Researching and comparing plans based on a large number of criteria is certainly a major issue consumers face when buying pet insurance.
4) READING THE FINE PRINT
If all that research were not enough, consumers also have to make sure to read the fine print on their plans. Pet Insurance Guide found that issues related to small print requirements accounted for one third of all complaints about pet insurance. As such, consumers have to be doubly sure to read the fine print carefully upfront before purchasing a plan to ensure that all the services they assume are included actually are.
5) COMPETING CLAIMS
With so much information available online, consumers also face issues sifting through what is reliable information and what is not. Pet insurance companies certainly publicize the benefits and necessity of their plans, but there are a number of websites with consumer reviews of those companies. For example, Nationwide Pet Insurance owns the oldest pet insurance provider in the U.S., VPI. It terms itself "the best pet insurance plan ever made" and describes its dog insurance plan as "straightforward, simple 90% back" (after the fine print). However, the company receives abysmal reviews on Consumer Affairs. Meanwhile, the ASPCA has resorted to marketing its plans by debunking "6 Myths About Pet Insurance" that are cited as important considerations on other sites like Consumer Reports.
In addition to doing their research into specific plans, consumers need to determine which voices are credible and read through reviews from consumers and experts.
CONCLUSION
To wrap it up, I compiled a list of the top 5 issues consumers face when buying pet insurance, the majority of them related to the need to research heavily before purchasing a plan. As there were few existing sources with information on consumer issues when buying pet insurance, I reviewed articles and consumer reports to determine the major problems they face. Thanks for using Wonder! Please let us know if we can help with anything else!