I think pet insurance is awesome! I take my corgi to Banfield in the Petsmarts and they are wonderful and great insurance (Banfield insurance). The insurance is great, it covers a lot. I had her teeth cleaned for free. It covered a lot of her spaying cost as well. There are a lot of good pet insurances around.
Someone suggested to me that instead of using an insurance company, I should open a savings account and deposit $50 dollars (or however much) into it each month and ONLY use it for pet care. I think that's a great idea. My Labrador lived for 15 years and never had any major medical expenses. Alot of money would have been wasted on insurance payments for her. However, if you put it into savings you keep all of your money :)