I suspect that it might all work very differently over here in the UK but I answered the poll anyway. We have insurance for all our dogs and the monthly premium varies depending on age but as an example, our older dogs (including the greyhounds) cost about £12 - £15 (pounds stirling) per month BEFORE we take into consideration the multi pet discounts we get.
We don't have kids and we don't go out for lots of meals and we don't go on lots of holidays etc so I'd rather spend the money on the animals insurance and have some degree of 'cushioning' from large vet bills.
Recently Sally was treated for a cancerous mammary tumour. All in all, the bill was about £300 and I paid the £70 excess on her policy, plus 15% of the remainder (making a total of £104.50). If she needs further treatment for this same condition or anything related to it, within this policy year, I'll have nothing at all else to pay. If she needs further treatment for anything related to it once we move into the next policy year (Sept 06) then I'll have to pay the £70 again (plus 15% which is because of her age - she's going to be 12 this year).
Maddison's cancer diagnosis/palliative treatments cost almost £2000 and all I had to pay was £70. Nothing in the world could have saved Maddison but with insurance, I was able to throw every possible comfort treatment at his condition without giving a moments thought to how I was going to pay for it. Before he was diagnosed, I could throw every type of x-ray and biopsy at it and not concern myself with anything other than what the tests would show.
There is no question in my mind that insurance is a must for our family and I would urge anyone else to consider it for theirs.
If I put away the monthly premiums each month and saved them for use on vets bills, that would be all well and good until I got one massive problem with a dog, which was on-going for a number of months or years. I would very soon have spent what I'd saved and then still need to find all the money for future treatments for that condition, PLUS any further illness or injury which may occur in that dog.