Medical insurance for your pet
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For example, here's a sampling of the anomalies Urbanhound.com found when it compared companies' policies, asking if they would cover a Labrador retriever's $2,500 hip replacement at the Animal Medical Center in Manhattan:

Compared companies' policies:

• VPI charges a $50 deductible per incident, then pays up to 90 percent of the benefit schedule, or up to 90 percent of the veterinary bill whichever is less expensive. Unfortunately, a Lab's failing joints fall under hereditary defect category so the confusing tables are moot. • PetCare Pet Insurance doesn't provide for routine care but pays 100 percent for each accident and illness up to $3,000 per incident after the deductible has been met. If the fictitious Lab's owner ponied up for the Gold level coverage they'd be in luck as that plan covers congenital or hereditary conditions. • Pet Assure extends a discount of up to 25 percent on vet procedures -- in this case $625 off the hip surgery; not bad for a $99 annual membership fee -- but you have to work with one of the docs in its system, which currently involves 2,000 names across the country. • Petshealth Care Plan slaps a surcharge for coverage in New York City, and it reserves the right to say no or redo the bill if it thinks the vet has overcharged. But, once again, "congenital anomaly" raises its ugly head for the hurting pup.

Filing reimbursement claims also falls on the pet owner's shoulders. According to Stephens, this method cuts down on over-utilization and fraud.

"Most of our claims are in the several hundred dollar range, which consumers can put on their credit card. We try to reimburse within a week," he says.

"But the back-and-forth paperwork and faxes I found way too frustrating and time-consuming," she says. "It was a pain filling out the forms, which needed to be signed by the vet and almost always were bounced back, delaying reimbursement."

The final straw came when she submitted a $145 bill in May 2001 but didn't receive her check until September. She dropped the coverage.

Never buy a policy from a company not licensed in your state. Without this protection, the company could go under and leave you holding the bag for outstanding treatments and unused premiums.

Finally, understand that pet insurance revolves around emotion. The truth is, a policy won't always save your pet's life.

Warren knows it's ultimately a numbers game: Say the bill amounts to $3,000 with a 20-percent co-pay. You're still on the hook for $600, and statistically euthanasia becomes an option for most owners at the $474 mark.

"It's still possible for that pet owner to put the dog down, even with insurance," he adds.