Out of the box A bad idea to buy insurance to cover vet fees
There is a trend towards buying insurance to cover vet fees for treatment of pets.

It is a bad idea. 

After paying the premium, many pet owners will want to make the full use of the insurance, and send their pets for more treatment than is necessary. 

It will be a good time for vets, as they will get more business. And if the owners are insured, the vet fees will go up.

And the premiums will rise.

It has already happen with health insurance for humans. It will also happen with insurance against vet fees.

Asking the owner to make a co-payment will not work. Some vets will increase the fees to cover the co-payment and will waive the co-payment.

What is the alternative?

a) Self insurance. The owner should pay for the vet fees as the need arises. If it is too expensive, they may want to forego the treatment.

b) The association of veterinarians should set the guidelines on fees for various types of common treatments. Owners should check the guidelines and select the vets that conform to the guidelines. Vets who wishes to charge above the guidelines should get the prior consent of the owner.

c) Owners should learn how to take care of the vets for common ailments, instead of rushing to the vets each time that the pet is sick.

Let us get away from the syndrome that insurance will solve all money problems. It will not. It will add to the total cost by adding administration and marketing cost and encourage over charging.

Tan Kin Lian
 

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