The Importance of Insurance...for Pets?

By Eileen AJ Connelly — AP Personal Finance Writer

NEW YORK (AP) — It's a common remark for those devoted to their pooches: "I spend more on my dog's health care than I do on my own!"

Dog owners can expect to pay a few hundred dollars a year for routine veterinary care, but a serious illness could send the bills soaring into the thousands.

One way to protect yourself is to buy pet health insurance.

It's still not that common. Less than 1 percent of pets are insured in the U.S., according to Petplan USA — one of just 13 plans available in the U.S. The company was founded by British natives Natasha and Chris Ashton, who said that in England, over 20 percent of all pets are insured and in Sweden the figure is close to 50 percent.

The couple started the company, which is affiliated with Petplan UK, after they ended up with a $5,000 bill to treat their cat, and were surprised at their limited choices. One of main reasons people have to give up their pets is the cost of care, Natasha Ashton noted. In addition to selling plans directly to owners, Petplan also offers insurance through The Humane Society.

Most people don't start looking for pet insurance until they face a big vet bill, said Michael Hemstreet, who runs Pet Insurance Review, a Web site for comparative shopping.

"But not one of the companies will cover a preexisting condition," he explained. "It's like if I don't have car insurance and get in an accident, and then try to apply for auto insurance."

Many pet insurance companies also will not issue new policies for older animals.