If you were to speak to most pet owners, most them would tell you that they have never thought they would ever have to pay over a thousand dollars for any individual treatment method for a health crisis endured by their pets. According to VPI (the Veterinary Pet Insurance Company), the country’s biggest and oldest pet health insurer, veterinary claims which exceed one thousand dollars are not as infrequent as assumed.

Approximately fourteen thousand claims for payments were turned in by VPI subscribers in 2010. The median cost of treatment for each claim was over one thousand dollars. When the insurance provider reviewed the most costly requests for payment, the claims which were the most expensive could be placed into ten medical conditions.

Below are the ten conditions which required the highest payouts; listed according to the number of claims filed in 2010.

More claims were made for the treatment of damaged knee cartilage/ligament than any other condition; however, the highest claim amount was associated with the disease of the intervertebral disc. The latter’s claims were reimbursed, on average, in the amount of $3,281.00.

Results of the DVM News Magazine State of the Profession Survey (2009) reveals $1, 451.00 as the amount at which the majority of pet owners would choose to stop paying for a single treatment for a hurt animal.

Surgery of the ear canal or ablation is the only medical treatment that falls beneath the cutoff amount for most pet owners. With costs that can go as high as $3,282 for the ten most expensive treatments, the worth of health insurance for pets is basically priceless.

Year Company Started: 1982

Underwriter: Veterinary Pet Insurance in California and National Casualty Company in all other states.

AM Best Financial Strength Rating: Veterinary Pet Insurance( Rating: A), National Casualty Company (Rating: A+)

Website: www.petinsurance.com

Phone: 1888-899-4874

VPI Pet Insurance, the nation’s oldest and largest pet insurer, covers dogs, cats, and birds. Founded in 1982, Veterinary Pet Insurance covers cats, dogs, birds, and exotic pets. In addition to insurance for accidents, injuries, and illnesses, policy holders can also buy vaccination and routine care coverage (known as CareGuard Routine Care Coverage).

The company offers three plans that reimburses you for accidents, illnesses, and routine preventative care, including X-rays, surgeries, prescriptions, lab fees, hospitalizations, vaccinations, dental care, spaying, and more. You can expect to pay up to $400/year with coverage up to $14,000 annually.

VPI Dog Insurance Plans:

• VPI Major Medical Plan (Comprehensive Coverage)

• VPI Medical Plan (Economical Coverage)

• VPI Injury Plan (Senior Pet Protection)

VPI Cat Insurance Plans:

• VPI Major Medical Plan (Comprehensive Coverage)

• VPI Medical Plan (Economical Coverage)

• VPI Injury Plan (Senior Pet Protection)

• VPI Feline Select Plan (Cat-Only Coverage)

What is covered:

VPI uses a benefits schedule which lists the reimbursement allowances available for each policy’s one-year term. Although VPI’s plans have a lot of fine print, policy holder testimonials indicate VPI has top-notch customer service.

VPI Pet Insurance Review

Rating: 8

Our review process starts with calling each of the insurance providers over the telephone and then, we gather quotes for these three pet profiles:

• A 2-year old male Yorkshire Terrier named Jax
• A 6-year old male Cocker Spaniel named Max
• An 8-year old female mixed breed cat named Fluffy

Claudia, a customer service representative from VPI, spoke to me for a half-hour today about the pet insurance they offer. She asked if they were spayed or neutered, and if they had any pre-existing conditions, as this would affect the estimate.

The Plans/Quotes

VPI uses a benefits schedule, meaning each condition or diagnosis has a maximum reimbursement—a cap that you can receive back.

Claudia gave me quotes for one of the least expensive plans, VPI Medical Plan, and the most expensive, VPI Major Medical Plan.

VPI Medical Plan

Covers all medical problems from colds to Cancer as long as it’s not pre-existing, hereditary, or from a birth defect. It offers the same coverage as Superior, except the maximum allowed for each diagnosis is half as much. The maximum annual benefit is $7,000.

Monthly Premiums:

includes accident and illness coverage with a $7,000 annual maximum and a $100 deductible.

• $27.88/month for the 2-year old Yorkshire Terrier
• $35.64/month for the 6-year old Cocker Spaniel
• $32.64/month for the 8-year old cat

VPI Major Medical Plan

Provides the highest reimbursement for eligible expenses, such as accidental injuries, emergencies, and illnesses.  The maximum annual benefit is $14,000.

CareGuard Routine Care Coverage is optional —an additional $22/month for CareGuard Premier and $12/month for CareGuard Core.

Monthly Premiums:

includes accident, illness, and hereditary conditions coverage with a $14,000 annual maximum and  a $100 deductible.

• $36.06/month for the 2-year old Yorkshire Terrier
• $46.28/month for the 6-year old Cocker Spaniel
• $41.94/month for the 8-year old cat

The Details

Claudia told me they’ve been in business for almost 30 years. They’re the only company that will continue to insure pets throughout their lifetime even if they become high-risk. Also, they offer continuous coverage without requiring you to purchase an additional package. Other pet insurance companies consider a condition diagnosed in one year pre-existing when the policy renews—which gives them the right to deny coverage at that point, unless you buy the extra package. VPI doesn’t work that way.

For routine care, you can add CareGuard Core coverage to any package for $12/month. This provides $250 to reduce the costs of routine treatments. If you’d like enhanced routine coverage—including dental cleanings—you should add CareGuard Premiere for $22/month. This package provides $400 annually.

Your policy takes effect for accidents and illnesses 14 days after you enroll. You can expect reimbursement within 30 days of filing a claim, and if you are dissatisfied, you can cancel at any time.

Conclusions

Claudia was very friendly and eager to help. She used examples from her own pets—who have VPI policies—which made me feel comfortable with her knowledge.

That being said, VPI is not on the top of my list. In making my choice, I’ll consider the following pros and cons:

Pros

• VPI is the oldest and largest pet health insurance provider in the US.
• You can visit any licensed veterinarian anywhere.
• There are no lifetime limits.
• The plans are highly flexible, allowing you to add routine care, enhanced routine care, and enhanced Cancer coverage.
• 5% multi-pet discount.

Cons

• Pre-existing conditions, congenital disorders, hereditary disorders, and certain musculoskeletal, urinary tract, ocular, and endocrine disorders are excluded—as well as ACL damage in the 1^st 12 months, collapsed trachea, and histiocytosis. That’s a lot of exclusions!
• VPI’s benefits schedule specifies how much you can receive per incident, limiting your reimbursement.
• Due to all the exclusions and the benefits schedule, it’s hard to know in advance exactly what you can expect to receive in reimbursement.
• The claim process can be somewhat slow.
• The founder, Dr. Jack Stephens, left VPI after a large property insurance company purchased a considerable share. He’s since started a new company—Pets Best Insurance—that I consider to be superior.