A Free Public Service

May 16, 2024

SCAMS BULLETIN Host Jay White is an inactive attorney in San Mateo County, California.

PET INSURANCE SCAM

Attribution:  scambusters.org

It’s important to know that pet insurance is not a one-size-fits-all thing. There are basically three types – for health, for (end of) life, and for injury.

Within each classification, there are different levels of coverage. It’s a bit like human auto and health insurance – with considerations such as comprehensive, hospitalization, pre-existing conditions, waiting periods, bereavement counseling, and so on.

Many pet insurance scams involve tricking owners into buying coverage that doesn’t exist, or, of are limited value. Phony policies may have so many exclusions clauses that they are of little value.

Here are common tricks to look out for:

*Fake Policies: Fake pet insurance policies usually look exactly like the real thing, often with emotive photos, promises of great coverage, and incredible testimonials praising the provider. They may also use stolen photos, celebrity endorsements, and official (or official-looking) logos of animal welfare and insurance organizations.

*Misleading coverage: As with fake policies, some so-called “pet insurers” make all sorts of wild promises about the scope of the protection they provide. They may also appear to offer extremely low premiums. But when you need to file a claim, you discover the coverage is strictly limited or that your claim falls within some vague exclusion clause. You may be offered the opportunity to “upgrade” your coverage for a significantly higher amount.

*Unlicensed Insurers: The licensing of pet insurers is a bit of a gray area. According to insurance education organization A.D. Banker, some states allow organizations to operate with very limited coverage, while others can offer a full range. But then, there are the scammers who skip the licensing process altogether and just set themselves up as insurers. Even if they do provide a level of coverage, usually at a lower price than elsewhere, you’ll have no recourse if things go wrong.

Caution-Fine Print

 Read closely the ‘fine print”. This is part of a scheme to rip you off. look closely at the scope of coverage, the exclusions, the limits on claims and benefits, and the extent to which the policy aligns with your pet’s needs and medical history.

As always, beware of spectacular coverage promises and low premiums.

Finally, talk to neighbors, family, friends, and other pet owners, asking for their recommendations.

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