12:24 PM EDT on Friday, July 25, 2003

Consumer Reports

Owning a pet these days can be a costly proposition due to great leaps in veterinary medicine and rising vet costs.

Just 10 years ago, euthanasia was considered the humane option for many owners. But now, vets can take extreme measures to save a pet and it can be expensive.

"You know in the wee hours of the night, God forbid there was some emergency and you have to bring her somewhere, something awful is happening. That stuff can be in the thousands of dollars," said pet owner Stuart Cottingham.

Even if your pet is perfectly healthy, there are routine tests and shots that are part of an annual check-up. Those costs can add up, too.

Now there's pet insurance. The pet owner pays the premiums and the insurance companies cough up if Fido breaks his leg. Sounds good, right?

Consumer Reports' Kim Kleman says not necessarily.

"The premiums seem small, anywhwere from $11 - $30 a month, but over your pet's lifetime, that's thousands of dollars," she explained.

And it's not just the premiums you'll be paying. Deductibles and co-pays come out of your pocket, as do any unreimbursed costs and exclusions.

To assess the value of pet insurance, CR made up "Lucky" the labrador retriever. Over 11 imaginary years, CR gave Lucky nine common ailments, including a broken leg, an ear infection and a torn knee ligament.

"We researched five plans, and in every case, it would end up costing the owner more with pet insurance - in some cases, thousands of dollars more, than just paying the vet bill," she said.

Consumer Reports then gave Lucky a major medical problem to see if that would make pet insurance a better deal.

"Even when we added the extreme expense of a double hip replacement, some of the plans still didn't save money," she noted.

So, CR says you're better off putting your money in a savings account to handle a pet emergency. That way, if your pet needs expensive medical treatment, you can use the money to buy him all the treats he can eat.