Sherman and Amanda Bausch say they learned about pet insurance the hard way.
In recent years, their two cats have had "issues … $500 to $1,000 worth," said Sherman.
So when the St. Paul couple adopted a dog from the Humane Society last March, they decided to get a health-care plan for all their pets. Since then, Vera, their German shepherd mix, has eaten a plate of brownies, developed cataracts and contracted Lyme disease. Their cat, Jello, also had a few more issues.
While they've paid more than $1,000 in vet bills since March, they estimate they've saved close to twice that much.
"I know pet insurance is a luxury. We're fortunate to make enough money to carry it," said Sherman. "But knowing what I know now, I wouldn't get a dog without it."
That places the Bausches firmly in the minority.
Americans now spend $575 per cat and $852 per dog with veterinarians every year, according to the American Pet Products Association. Even with the economic downturn, vet expenditures for all pets rose 14.3 percent from 2006 to 2011, while the Consumer Price Index climbed 11.6 percent, according to the American Animal Medical Association.
Newer procedures (treatment for cancer, knee surgery, teeth cleaning) combined with inflation have fueled the price increases, said Healthy Paws Pet Insurance owner Steve Siadak, who also cited "the humanization of pets [as] the new kids."