I have had very good experience with pet insurance. I use VPI--Veterinary Pet Insurance. They pay promptly and pay a reasonable amount of the charge and there are no hassles. I have it on each of my 4 labs and each year I've used it enough and received payments greater than what I paid in premiums. The earlier you insure the dog the better. The premium is lower and you don't have to deal with pre-existing conditions. I don't have coverage for things like well care and vaccines because those costs are manageable. I cover the bigger things and also have a rider for cancer coverage. The cancer coverage rider only costs $21 a year.

After paying for two TPLO's and a 4K bill for a bout of acute pancreatitis, I decided maybe insurance wasn't such a bad idea after all. I went with PetPlan because they cover hereditary conditions and don't call things like diabetes "pre-existing" when it comes time for renewal and drop your coverage like many do. You have to be careful, not all are created equal. The following site is a pretty good place to start if you're shopping for insurance: http://www.petinsurancereview.com/