Dave Says: How About Pet Insurance?

What do you think about having pet insurance?

Dear Dave,

What’s your take on having pet insurance while building wealth in order to avoid being sidetracked by pet-related emergencies?

Anonymous

Dear Anonymous,

We have three dogs in the Ramsey household, and my wife and I love those guys a lot. They’re almost like little hairy children to us both. However, we do not have pet insurance on any of them. You might be thinking that we’ve got plenty of money and don’t have to worry about that kind of thing. But even if we weren’t financially blessed it’s just not something we would do. Instead, we’d figure a reasonable amount for pet care into our budget.

Now, don’t misunderstand what I’m saying. Reasonable expenditures to fix a sick or injured pet are absolutely fine. It’s the kind of thing anyone with a heart should want to do for a pet. But ridiculous amounts of money spent on an animal—many times spent selfishly on the part of the human because they’re so emotionally attached to the animal—can be cruel, inhumane, and financially disastrous.

I’m not going to be mad at you if you have $2 million sitting in the bank and you decide to spend $10,000 to keep your dog alive. But pet insurance? Really? I don’t think so.

—Dave

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