07:06 AM CDT on Monday, May 1, 2006

By KATIE MENZER / The Dallas Morning News

James Bias doesn't regret the small fortune he paid in veterinary bills to help his dog Sandy.

But the president of the SPCA of Texas, where every adopted animal is given a free month of pet insurance, does lament that he hadn't followed his own organization's lead.

"Here we provide it, and I didn't even have it myself," says Mr. Bias, who now has Sandy enrolled in a pet insurance plan. "It's a lesson learned."

Pet insurance is gaining popularity nationwide, spurred by rising veterinary costs, more advertising and pet owners' growing tendency to treat their pets like family members, according to Packaged Facts, a consumer data-gathering group.

Revenue for the U.S. pet insurance business hit $160 million last year, up 25 percent from the year before. But only 2 percent of North American pet owners had signed up for the insurance in 2005, the group says.

So should you join the small-but-growing pack?

Pet health plans vary widely depending on benefits and the animal's species, breed and age. The restrictions are complicated and often similar to limits that apply to human health insurance, such as pre-existing conditions or advanced cancer treatments.

A basic plan covering general maladies can start at $15 a month for a dog and $10 for a cat. If you want your plan to help pay for flea protection or offer a reward if your pet is lost, expect to pay about $70 or more.

Be sure to read the fine print and sign up only with an established company, says Joe King, a Plano veterinarian.

"It's something that I think they should look into and see if it fits their way of thinking," Dr. King says.

Purebred pets, for example, are at higher risk for genetic diseases and problems. The hip dysplasia that plagues some German Shepherds, or Persian cats and their polycystic kidney disease, can cost thousands to treat.

But any pet may have an accident or develop a disease.

An average owner with a healthy, medium-to-large dog should expect to pay $25,000 in food, vaccinations and pet-related expenses over the lifetime of the animal, says Jim Wilson, a Pennsylvania vet and lawyer who crunched data from several animal-care associations to determine the true cost of pet ownership.

The number jumps to $35,000 if the dog develops diabetes or another chronic problem.

That's why Dr. Wilson recommends pet insurance. He operated his vet practice for 16 years before becoming a consultant for veterinarians needing business and legal advice.

"When owners with pet insurance would come in to my practice, we didn't talk about money. We talked about what that pet needed," he says.

But the pet owner's fiscal philosophy is also a factor. If you have enough in the bank to cover an unexpected vet bill, then it might not be worth buying insurance your pet may never need.

But if you're the type who'll do anything for your pet and you're short on cash, it might be worth it.

According to the results of a veterinarian survey published in 2003 in the trade journal DVM Newsmagazine, most pet owners will stop treatment if the medical bill exceeds $961.

Since the SPCA began offering the free insurance in 2002 through Petfinder.com, 30,000 adopted pets have been insured and $88,000 in claims paid out.

Mr. Bias says they never discovered what was wrong with Sandy when she became ill as a puppy and needed round-the-clock hospital care costing $1,500, but she's healthy now.

Although he hasn't filed any claims since he signed her up for insurance, he says that's the point.

"You prepare for the worst but always hope for the best."

E-mail kmenzer@dallasnews.com

WHEN YOU NEED THE VET

Here are the top 10 reasons pet owners took their ailing dogs and cats to the vet in 2004, according to claims filed with Veterinary Pet Insurance Co.

DOGS

1. Ear infections

2. Skin allergies

3. Stomach upsets

4. Benign tumors

5. Bladder infections

6. Skin infections

7. Sprains

8. Eye infections

9. Colitis

10. Skin lacerations

CATS

1. Urinary tract infections

2. Stomach upsets

3. Respiratory infections

4. Ear infections

5. Skin allergies

6. Eye infections

7. Wound infections

8. Colitis

9. Gum disease

10. Kidney disease

WHICH PLAN IS RIGHT FOR YOU?

Research the insurance companies and their offerings before picking a plan. Be sure to read the fine print. Plans often have exclusions, and premiums can change based on the species of your pet, breed, age and geographic location, among other factors.

Here is some general information about plans offered by three of the nation's largest pet insurance companies. These plans are for dogs, but each company offers programs for other types of animals, too.

www.petinsurance.com

VPI STANDARD PLAN

Helps pay for diagnostic tests, prescriptions, treatments, hospitalization, office visits, X-rays, lab fees and surgeries

Deductible: $50

Coverage: Up to $2,500 per accident

Maximum benefit: $9,000 per year

Monthly premium: About $15

VPI SUPERIOR PLAN

Helps pay for diagnostic tests, prescriptions, treatments, hospitalization, office visits, X-rays, lab fees and surgeries

Deductible: $50

Coverage: Up to $4,500 per accident or illness

Maximum benefit: $14,000 per year

Monthly premium: About $25

www.petcareinsurance.com

QUICKCARE GOLD

Helps pay for unlimited number of accidents and 6,000 illnesses

Deductible: $75 or $50, depending on level of plan

Coverage: Depending on level of plan, 70 percent of veterinary care fees or coverage of up to $3,000 per accident or illness category

Maximum lifetime illness coverage of $36,000

Monthly premium: Starts at about $23

QUICKCARE PREFERRED

Helps pay for all accidents and illnesses

Deductible: $100

Coverage: 70 percent of veterinary care fees

Maximum benefit: Up to $5,000 per accident or illness category

Monthly premium: About $35

www.petshealthplan.com

BASIC PET INSURANCE PLAN

Helps pay for illnesses, accidents, spaying or neutering, hospitalization, X-rays and surgery

Deductible: $100 annually

Coverage: 80 percent of allowable charges

Maximum benefit: $8,000 per year

Monthly premium: Starts about $15

BEST PET INSURANCE PLAN

Helps pay for illnesses, accidents, spaying or neutering, hospitalization, X-rays, surgery, standard vaccinations, annual physical exams and continuing treatments for some chronic conditions

Deductible: $100 annually

Coverage: 80 percent of allowable fees

Maximum benefit: $13,000 per year

Monthly premium: Starts at $71