<prompt> Human: I have two cats. I could pay 60month to insure them for 90 of any emergency medical costs they might incur, but instead I choose to put aside 100 each month as a form of self-insurance. If something happens to my cats in the next 2-3 years then Im pretty screwed, but after that, I figure, Ill come out ahead over the alternative being my money disappearing to an insurance company every month. Im 22 years old and pretty new to budgetinginsurancefinances in general, is self-insurance something I shouldnt really be going in to without experience? Is there anything I should know about it? Something else Ive wondered: Is there a point where, say, once I have 5,000 in savings or something, its smarter to switch to an actual insurance company, and pay them out of the self-insurance money Ive saved up? So in a way I save the money Id normally be paying into my self-insurance account? Having a hundred more bucks in my budget while not having to worry about paying for pet emergencies sounds pretty nice...  <response>: RVT here. Pet insurance is a bit misleading, as it is not insurance at all but a reimbursement program. You are still responsible for paying all vet bills in full with a paid invoice before submitting a claim.I wouldnt say it is a scam, but it is a little misleading.It is also depends on how old your cats are. Younger cats are less prone to health issues and are generally cheapest to insure, whereas older cats will be more expensive.Youre better off taking the 60 youd be paying for a monthly premium and depositing it into a dedicated pet savings account. If youre worried about emergencies right now before you get a nice cushion saved up, you can look into applying for a care credit card. 