Pet owners across America probably will. do anything This includes paying hundreds, if not thousands, of dollars to cover potential medical costs from pet-related emergencies. Some of these bills can certainly be expensive and can leave pet owners in serious debt if not properly prepared.
Kimberly Palmer, NerdWallet's personal finance expert, joins Yahoo Finance to discuss how pet owners can avoid falling into debt with high vet bills and animal care costs.
Mr. Palmer shares his insights on the affordability of pet insurance plans.
“What's important to know is that pet insurance is often relatively affordable. So, for example, the average cost of pet insurance for a dog is about $53 per month. Many pet owners are surprised by this, but the price of pet insurance actually increases as your pet ages. And at the same time, pet insurance prices are going up anyway because of inflation…but it's a fact. It's much more affordable than having to pay unexpected medical bills if your pet gets injured or needs some kind of treatment. ”
For more expert insights and the latest market trends, click here to watch the full episode of Yahoo Finance Live.
Editor's note: This article was written by Nicholas Jacobino
video transcript
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Rachel Akuffo: Would you go into debt for your furry friend? Well, one in four people would do it to get life-saving medical care for their pet. This is according to a report by NerdWallet and a survey by USA Today, which found that 91% of dog owners experience financial stress regarding the cost of caring for their pet. But there are ways to keep both your pet and your wallet healthy. Kimberly Palmer, NerdWallet's personal finance expert, breaks it down for you.
I'm glad I was able to appear on this program. In an age where we can barely afford a $250 emergency, many people seem to be underestimating just how costly pet health-related expenses can really be. What do people need to know about this?
Kimberly Palmer: The really difficult thing about caring for a pet is that you never know if your pet will get sick or injured, and you never really know what's going to happen. And the time to get pet insurance to help manage these costs is long before your pet needs it.
So it's very important for people to consider. What do you expect? Do you want to be able to rely on pet insurance if your pet needs medical care, or do you want to pay for it yourself? And, in some cases, control your own financial situation. You might even risk putting yourself at risk. Like you said, people are willing to do all kinds of things, including going into debt for their pets. And that can be very difficult for pet owners.
Rachel Akuffo: But you think if people are willing to borrow money, why don't they buy insurance? Compare some of the costs to some of the costs people see each month if they have insurance. In my case, an anecdote is that my dog ate chewing gum and developed an allergy. It will cost him 9,000 yen later, but if you don't have pet insurance, you'll have to cover the upfront cost.
Kimberly Palmer: This is a great example of how unexpected expenses can really arise for pet owners. The important thing to know is that pet insurance is often relatively affordable. For example, the average cost of pet insurance for a dog is about $53 per month. However, it's important to know, and this is something that surprises many pet owners.
In fact, the price of pet insurance increases as the pet ages, and at the same time, due to inflation, the price of pet insurance is also increasing anyway. So, while pet insurance isn't cheap, it's definitely more affordable than if your pet gets injured or needs treatment and you suddenly have to pay for unexpected medical bills.
Rachel Akuffo: If you look at some of the expensive things that are covered and not covered by this part of pet insurance, you'll find that people often say, “I have pet insurance, but it's covered because there are external costs.” What should I do in case this happens? has also been added.
Kimberly Palmer: There is. A very important thing to know is that you will generally pay a deductible if your pet requires care. Pet insurance will then cover some of the remaining costs. That's why these costs are so much easier to handle.
But the important thing to know is that pet insurance usually doesn't cover pre-existing conditions or wellness care. Unless you add it to your pet insurance, your premiums will of course be higher. The difficulty for pet owners is that if you know your pet needs some care because it's already sick, for example, it's probably too late to get pet insurance at that point, as pre-existing conditions are excluded. It is to become.
There are many things for pet owners to consider.
Rachel Akuffo: And when you compare that cost to all the other costs that people have to bear when inflation is starting to slow down but some of these costs are still very high, people How should we think about incorporating parts of it? How to avoid shock in case of an emergency with your pet?
Kimberly Palmer: That's a really important question, and that's why it ultimately comes down to a personal decision. So what you want to do is weigh the risk of getting pet insurance now against the risk of suddenly facing expensive problems for your pet's medical care. Perhaps you're getting a pet for the first time and assessing what risks there are. I want to accept it.
You can set aside money yourself and budget in advance for expenses that may arise, or you can rely on pet insurance for a monthly or annual fee. You can also purchase pet insurance if your pet needs medical treatment. Therefore, you need to weigh the pros and cons and consider your budget and what fits it.
What you don't want to do is put yourself at risk and take on debt that will be very difficult to deal with. Because it can lead to more financial stress in the future.
Rachel Akuffo: If you can cover this insurance premium, it is certainly worth it. Thank you for breaking it down for us. Kimberly Palmer, personal finance expert at NerdWallet. Thank you for your time. Have a nice weekend.
Kimberly Palmer: thank you.
