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Pet insurance or savings account? That is the question.

By Kara Bednarik

Pet insurance vs. savings account

Every six seconds someone is handed an emergency vet bill of $5,000 or more. A report in January of 2017 from Bankrate showed that nearly 60% of Americans would not have the funds to cover an unexpected bill of $500 or more. In a pet emergency, $500 is an easy figure to meet in just one visit, and if ongoing care is needed, that is just the tip of the iceberg.

One of the most commonly asked questions pet insurance companies get is, “Couldn’t I just start a savings account for my pet?” And the answer is yes, but how much are you able to contribute to it realistically, and how quickly? Unfortunately, your new puppy isn’t going to wait until you have money set aside before deciding that swallowing a rock might be worth a try.


Why pet insurance?

Pet insurance pays you back. Yes, you read that right. You get paid back for a portion of the vet bill when you have pet insurance. If something unexpected happens, the savings account that you set up for your furry friend will be empty in no time. And if there’s follow-up care needed, you’ll be overdrawing that account in no time.

Pet insurance is convenient. I’m sure that many of you have vowed to start a savings account for one reason or another, but life happens and you don’t quite get around to it. Saving money requires tight budgeting and a lot of discipline. Insurance premiums can be withdrawn monthly or annually so you don’t even have to think about it.

Pet insurance works well with a savings account. You should still have a savings account. Pet insurance is reimbursement based, so you will still need to front the money from savings or with a credit card, as well as cover your deductible and copay. But the rest is reimbursed, so you can replenish your account after the bill is paid without having to start from zero.

Pet insurance is dedicated solely to your pet. We’ve all heard the expression, “When it rains, it pours.” First the brakes go out in your car and then your dog gets sick. With a savings account, you dip into that for emergencies, pet-related or not. What happens if your dog gets sick at the same time as another unexpected financial expenditure? Pet insurance will be there for you.

Pet insurance makes financial sense. Pet insurance exists for the same reason that car, renter’s, and homeowner’s insurance does: to protect you from financial ruin if something unexpected happens. Having your car and your home insured provides you with a sense of security, pet insurance is here for that same peace of mind.

Finding the best coverage is the first step: Embrace offers personalized policies to fit any budget so you can make decisions about your pet’s care based on what is best for them rather than what you have in your savings account.

While you can't predict when your pet is going to get sick or injured, you can protect yourself from expensive veterinary bills. Embrace Pet Insurance gives you the freedom to do what’s best for your pet without stressing over the cost. Easily personalize your coverage to fit your budget and your pet’s needs, then visit any vet for nose-to-tail coverage. Check out what the Embrace plan covers or compare pet insurance providers to learn more.

Mind if we pay your vet bills?

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Pet health insurance is administered by Embrace Pet Insurance Agency, LLC and underwritten by one of the licensed insurers of American Modern Insurance Group, Inc., including American Modern Home Insurance Company d/b/a in CA as American Modern Insurance Company (Lic. No 2222-8), and American Southern Home Insurance Company. Coverage is subject to policy terms, conditions, limitations, exclusions, underwriting review, and approval, and may not be available for all risks or in all states. Rates and discounts vary, are determined by many factors, and are subject to change. Wellness Rewards is offered as a supplementary, non-insurance benefit administered by Embrace Pet Insurance Agency in the United States. © 2016 American Modern Insurance Group, Inc.