By Karla Sullivan
“California has the largest number of insured dogs and cats in the nation,” said Commissioner Jones. “It is essential that consumers purchasing pet insurance understand what they’re getting for their money. When policy terms are more easily understood, consumers are better able to select a product that meets their needs. AB 2056 will help pet owners who want to limit the financial risk associated with the pet’s veterinarian bills, while providing important consumer protections that are currently absent from pet insurance.”
The California Department of Insurance has received several complaints concerning pet insurance. One of the most common issues pet insurance consumers face is coverage of pre-existing conditions. Pet owners often purchase policies either not knowing that pr-existing conditions are not covered or the policy language is unclear as to what constitutes a pre-existing condition, which leads to coverage denials by the insurer.
AB 2056 will require pet insurers to define clear guidelines when it comes to pre-existing conditions such as a hereditary disorder and allow pet owners at least 30 days to cancel a policy.
Pet insurance has expanded to offering a variety of policies but many that own a policy find that claims can be cumbersome especially since many have to pay the bill upfront and wait to be reimbursed in a timely manner.
Also, pet owners are concerned about the low amounts the insurance pays. Many pet owners feel cheated that for the amount they are paying in premiums, they are not getting the protection for their animals that they need. But on the other hand, the cost of vets can be extremely expensive, one owner spending over $10,000 treating a cat for cancer.
The important message here is to ask questions when shopping for pet insurance. Depending on the health of your pet, you may find insurance worthwhile especially if your pet does have health issues.
