It's a pet owner's worst nightmare: Your cherished pet is suffering in pain and you're faced with the agonizing choice of facing huge veterinary bills you can't afford or putting your pet to sleep. Fortunately, more pet owners are learning that reasonably priced pet health insurance is readily available in the United States. This is especially good news since so many treatments that were once confined just to humans are now readily available to pets.

It is now possible, for example, for veterinarians to do hip replacement surgery, kidney transplants or surgery for bone cancer. (Dogs and cats are three times more likely than people to contract cancer, and 45 percent of dogs die from it, said Alejandra Soto, spokeswoman for the nonprofit Insurance Information Institute in New York.) These advances in veterinary medicine mean that pets can live longer, more rewarding lives. But they can be expensive and pet owners need to be prepared for the expense.

Less Pet Owners Have Insurance

Even so, not everyone is aware about or taking advantage of pet insurance, with less than 1 percent of America's pet owners having enrolled their dog, cat, bird, rabbit, reptile or other exotic pet. "Often pet owners may not be aware of the costly amounts associated with veterinary care until their pet is stricken with a sudden illness or suffers an injury, Without pet insurance in place to help alleviate the costs for necessary treatment to cure a pet, some owners may be put in the unfortunate predicament of making a life and death decision with their pocketbook, as opposed to their heart."

Like human medical insurance, pet insurance companies charge premiums and have deductibles, based on the different policy plans offered. The levels of coverage depends on the premium and the deductible. Routine veterinary checkups may not be covered in the base plan but are offered as an endorsement. There might also be exclusions, based on age, preexisting conditions and breed-related problems. Be sure to examine every policy closely to make sure that you understand what you are buying and call the pet insurance company with questions.

Key Issues to Consider

The age of your pet. Premium costs rise as pets grow older and enter the years when they are more likely to suffer serious illness or injury.

Levels of coverage. Pet health insurance offer basic policies and upgrades.

What's covered.

Basic policies generally cover treatment for accidents, injuries and illnesses. Beyond that, there are variations. For example, VPI's basic policy also covers acupuncture and chiropractic treatments. However, VPI's Vaccination & Routine Care Coverage endorsement includes spaying and neutering along with dental and other routine care treatments.