Spending on pet insurance in a recession?
Many of those in economic circles have begun to utter the dreaded economic "r" word - recession. One of the causes of an economic recession is that consumers begin to spend less as a result of economic uncertainty. Sometimes as a result of this budget tightening, consumers will not spend money on things they still should consider.
Take for example, pet insurance. Depending on the type of coverage you desire, a policy can start around $17/month. If your pet is important to you, this is money well spent. In tough economic times, it is difficult to spend large sums of money on anything. It would be an even more difficult decision if the money being spent was for a loved pet.
A basic pet insurance policy can be less expensive than most, or quite possibly all, of the bills a typical consumer sees in a month. For example, according to an MSNBC.com article, the average cable bill in US households was over $43.00 in 2005. That is just over twice the approximate cost of a basic pet insurance policy. This policy could protect the pet owner from thousands of dollars in veterinary bills. By having a pet insurance policy in place, even a basic one, a pet owner is given the peace of mind that they will have assistance covering a large veterinary bill. That is the purpose of insurance, provide policy holders with peace of mind.
Some pet owners talk about using their credit card as their pet medical emergency fund. In most cases this would not make good financial sense. How much would a consumer pay on a credit card bill of $3,000, and at what interest rate? According to www.indexcreditcards.com, as of March 24, 2008, the average rewards type card rate is just over 15%! Depending on your payment habits you could end up spending big money. At that rate paying the minimum possible, you could end up paying around $3,300 in interest, bringing the total cost to over $6,300.
While pet insurance will add a small cost to your monthly budget, for some owners it just makes sense. Despite the current economic recession, pet insurance could really be helpful in a time of need for an owner and their pet.