There are two basic types of pet health care coverage that you will be given a quote for:

1. – Benefit Scheduled Method
2. - Usual, Customary and Reasonable (UCR)

It is important to understand the difference between the two.

BENEFIT SCHEDULED METHOD

This type of coverage is based on pre-set payment amounts for specific conditions and medical treatments.   The advantages of this type of coverage are:

1. Full disclosure

You will be given a full menu of items covered and exactly how much the insurance will pay out for each item.  For example if your cat got mangled in a fight with a dog and incurred open wounds  needing anesthesia, surgery and medication as well as an overnight at the Pet Clinic ICU, your coverage might like something like this:

surgery                        $400
anesthesia                   $200

ICU                             $  50 (per night – to a maximum number of nights)

Medication                  $200

Total                            $750

Note: amounts are completely fictitious and in no way an indication of actual figures that an insurance company may use in their quote).

If your cat did have such an incidence, and the costs added up to $1000 you would not be reimbursed the additional $250

2. Cheaper Premiums

Limited payouts may mean cheaper premiums.  If affordability is a major factor this type of insurance may be an attractive alternative.

3. Does Not Vary Location to Location

While this may appear to be an attractive feature, in some parts of the country pet health care may be far more expensive than in others.  Think major cities such as New York and Los Angeles, the vet fees in these cities would be higher than at Small Town USA.  Particularly important to note if you travel with your pets.

4. Not Indexed to Inflation

The good thing about this is that your premiums do not increase, the bad thing is that with inflation the actual cost of pet health care goes up, but the reimbursable amount stays the same.  Frequent updates with this type of insurance are a must or you might end up holding the short end of the stick.

Usual, Customary and Reasonable (UCR).

UCR or Usual Customary and Reasonable is the more traditional insurance method, simply you (your pet) incurs the expense and you submit it for full reimbursement.

This is still not a carte blanche, it is not unlimited coverage so be sure to check what your coverage actually covers.  The amounts that can be claimed vary place to place, depending on the cost of veterinary services.  Also, if you have claims, the premiums are likely to increase.

No matter which option you choose, do be sure to do your research thoroughly.  When you receive a quote it is a good idea to go over every item with the insurance company so that you understand exactly what it means.   A surprise bill that your insurance company only partially covers is enough to put your stress levels into overdrive, but an emergency with no coverage can be a very sad story.

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