Pets are our family members too; we take them not just to the vet but with us to the store, on vacation, and sometimes just to ride around with them in the car. Dog parks have become popular and many people take their dog to the dog park regularly for socialization for both dog and human.  When an accident happens our furry friends can be injured or worse. While medical payments coverage extends to the human passengers in our vehicles, the bills and expenses of our injured furry friends can go unpaid especially if there is not a pet health insurance policy in place. With the updates to the Personal Auto Policy in 2018 a new endorsement was added to extend Pet Injury Coverage to those important family members if injured in an automobile accident while riding in a covered vehicle. The endorsement, Pet Injury Coverage PP 33 31 09 18, sets the parameters of the coverage extended to our furry friends, which is confined to cats and dogs.

Analysis

The form requires the insured to schedule the amount of coverage desired. Per the Personal Lines Rating Manual the scheduled amounts that can be chosen are: $500, $1,000 or $2,000 per occurrence. As is standard, the form advises that all other provisions of the policy apply unless modified by this endorsement. Endorsements add, delete or change coverage, but only affect what is directly specified in the language of the form.

PART D – COVERAGE FOR DAMAGE TO YOUR AUTO

The following is added:

A. Insuring Agreement

  1. We will pay, without application of a deductible, for reasonable:
    1. Veterinary expenses or services incurred as a result of "bodily injury" of "your pet"; or
    2. Expenses such as cremation or disposal incurred as a result of death of "your pet". We will pay only those expenses incurred for services rendered within one year from the date of the loss.
  2. The coverage described above applies only if:
    1. The Declarations indicates that Other Than Collision and Collision Coverages are provided to at least one "your covered auto"; and
    2. "Your pet" is inside a "your covered auto" or any "non-owned auto" at the time of loss to any such auto caused by "other than collision" or "collision".
  3. "Your pet" as used in this Part means any dog or cat owned by:
    1. You; or
    2. Any "family member".

Analysis

Coverage is provided for veterinary expenses, cremation or disposal incurred as a result of "bodily injury" or death to "your pet" that results from an accident. No deductible applies. Expenses must be incurred within one year from the date of the loss in order for coverage to apply.

Coverage applies only if collision and other than collision coverages apply to at least one of the insured's covered autos, and the pet is inside "your covered auto" or a "non-owned auto" at the time of loss. Note that the form does not say the pet must be in the auto carrying that coverage. For example, an insured has two vehicles on his policy, the old Ford pick-up truck and the new Toyota Camry. The insured carries both collision and other than collision on the Camry but not on the truck. While driving the truck with Cuddles, the insured has an accident and Cuddles is injured. Even though the truck is not covered for physical damage, because the coverage is on the Camry, the injuries to Cuddles would still be covered.

However, Redmond, the family's Labrador stayed home and was struck by the family car while sitting in the driveway. Because he was not in the car at the time of the occurrence, there would be no coverage for any veterinary bills or expenses for this loss.

The definition of "your pet" means any dog or cat that is owned by you or any "family member" as defined in the personal auto policy. So this means Sam the snake, Iggy the iguana or Fezz the ferret sadly are not covered by this endorsement, but Fluffy, the cat and Fido, the dog have coverage for family excursions, trips to the store, and even rides to the veterinarian, as long as one vehicle on the policy has physical damage coverage.

B. Limit Of Liability

The Limit Of Liability Provision is replaced by the following:

Limit Of Liability

The Limit Of Liability for Pet Injury Coverage shown in the Schedule or in the Declarations is our maximum limit of liability for all expenses or services resulting from any one loss.

This is the most we will pay regardless of the number of:

  1. Your pet(s);
  2. Claims made; or
  3. Vehicles or premiums shown in the Schedule or in the Declarations.

Analysis

The limit of liability is the maximum amount shown in the schedule or the declarations, and is the most the insurer will pay for all expenses and services resulting from any one loss. The maximum amount is payable regardless of the number of pets in the vehicle at the time of loss, the number of claims made on any one loss, and the number of vehicles or premiums shown on the policy schedule or declarations.

If a family is transporting four dogs in one covered vehicle, and two cats in another covered vehicle, and both covered vehicles are involved in a multi-vehicle accident resulting in injuries to all four dogs and two cats, the maximum amount the family can recover is the scheduled amount. Let's assume in this case the scheduled amount was $1,000. Therefore, the maximum amount that would be payable for this one loss is $1,000 even though the bills for treatment for the six animals are a total of $5,000.

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