Pet Insurance vs Savings: The Math That Changed My Mind

Published June 13, 2024

I was saving $100 per month for pet expenses instead of buying insurance. Seemed smarter, right? Keep the money, earn interest, avoid insurance company overhead.

Then Max needed $8,000 hip surgery at 18 months old. My pet savings account had $1,800. I learned why insurance exists the expensive way.

Why Insurance Beat My Savings Plan

Insurance felt like throwing money away until I needed it. Then it felt like the smartest decision I never made soon enough.

Insurance Covered What Savings Couldn't

Max's $8,000 surgery was covered at 90% after my $500 deductible. I paid $1,300 out of pocket instead of the full amount. My 18 months of $100 savings wouldn't have covered even the deductible plus the surgery difference.

But Insurance Has Real Downsides

I pay $85/month whether Max needs care or not. That's $1,020 per year in premiums. And I still have to pay upfront and wait for reimbursement. Plus anything that happened before I got insurance isn't covered.

Why My Savings Plan Failed

Saving for pet expenses sounded so responsible and smart. In theory, it was perfect. In reality, it was a disaster.

Savings Worked Great Until It Didn't

I loved having control over the money. Used it for Max's routine vet visits, good quality food, even some fancy toys. No restrictions, no waiting for reimbursement. But when he needed major surgery, 18 months of $100 savings wasn't even close to enough.

I Wasn't Disciplined Enough

The pet savings account looked like regular savings after a while. When my car needed repairs, I 'borrowed' $400 from it. When I wanted to upgrade my laptop, another $600 disappeared. By the time Max got hurt, what should have been $1,800 was actually $800.