It’s a fact: pets are expensive. In 2023, Americans spent $38.3 billion on care and products from veterinary services as costs have continued to rise from year to year.
If you’re like most people, you’ve probably heard a bit about pet insurance in the past, but it seemed as though those choosing to go that route were more the exception than the rule. It’s becoming much more common, and for good reason — pet insurance makes solid financial sense for many pet owners and offers peace of mind when it comes to caring for our fur babies. As veterinarians, we are huge proponents of pet insurance, which is why we’ve taken the time to answer some frequently asked questions about it below.
What Is Pet Insurance?
Much like health insurance for humans, pet insurance is a way to plan for the unexpected. Pet insurance is a type of health plan that can help pet owners afford proper veterinary care when their pet is sick, injured, or needs to undergo a procedure. Through pet insurance plans, pet owners pay a specified amount — often a monthly or annual premium — into their plan and then are reimbursed for eligible expenses when their pet goes to the vet or receives care.
When you have coverage, you’re essentially taking finances out of the equation when a big accident or major illness occurs, such as a broken leg or cancer in your pet. There are numerous different care and coverage options when it comes to pet insurance, so eligible expenses and reimbursement rates and timelines can vary from provider to provider, and even plan to plan.
The most common types of pet insurance plans include:
- Comprehensive Coverage
- Accident-Only Coverage
- Pet Wellness and Health Maintenance Coverage
Some other types of care, such as complementary therapy or behavior modification, may also be excluded from coverage; however, many providers offer coverage for these types of care for an additional premium.
In addition to dogs and cats, many pet insurance providers also offer equine, avian, and exotic plans that cover everything from snakes to sugar gliders. Most insurance policies also cover a wide range of breeds and ages — but you should be aware that these factors will influence the cost of coverage.
How Much Does Pet Insurance Cost?
The cost of pet insurance can vary widely depending on several factors, including the type of coverage, the pet's age, breed, and location, and the insurance provider. On average, monthly premiums can range from $20 to $60 for dogs and $10 to $30 for cats. As of 2024, the average monthly premium for accident and illness pet insurance in the U.S. is about $53 per month for dogs, and about $32 per month for cats.
Comprehensive plans that cover accidents, illnesses, and wellness care tend to be on the higher end of this spectrum, while accident-only plans are generally more affordable and have lower premiums.
With costs varying depending on the coverage included, it’s important to shop around and compare different plans to find one that fits both your budget and your pet's healthcare needs. For example, if your pet is chronically ill and needs regular trips to the vet, investing more money into a comprehensive plan would likely make sense and save owners more money throughout the span of their pet’s life. However, if you have a young and active pet with a clean bill of health, an accident-only plan may make more financial sense.
How Does Pet Insurance Work?
Again, just as with health insurance for humans, you pay a deductible, which is dependent upon what you’re paying as a premium. Unlike human health insurance plans, however, you don’t have to go to a veterinarian within your network. Also, unlike human healthcare, you typically pay veterinarians upfront and then get reimbursed by your pet insurance carrier. Your insurance provider may require proof of service, so remember to hold onto any receipts. Also, be aware that there is often a waiting period of about 5-7 days between paying the veterinarian and getting your reimbursement.
6 Pet Insurance Terms You Need to Know
When it comes to pet insurance, there can be a lot of confusing language that may be difficult to understand and determine just how much you’ll need to pay and what kind of coverage you’ll get.
- Deductible - The part of the vet bill you’re responsible for before your plan’s reimbursement. There are per-incident deductibles and annual deductibles. The former means that if that same injury occurs again, the deductible will no longer apply.
- Reimbursement - The amount you get paid back by your pet insurance company, and this percentage varies anywhere from 60 to 100% of the bill.
- Limits - Per-incident limits put a cap on the amount you can be reimbursed for a single injury or accident.
- Annual Limits - Some insurance companies set a cap or set amount on what they will pay per year, and your pet may or may not meet this.
- Premiums - The amount you pay each month to keep your pet insurance policy active; a higher monthly premium means you’re paying more for coverage, so be sure to shop around to find the best option for you and your pet.
- Waiting Periods - Some pet insurance plans will carry periods of time that you’ll have to wait before your coverage is effective, known as “waiting periods.” During this time any incidents that require veterinary care for your pet will likely not be covered by your plan, and you will not be reimbursed for the associated costs.
Is Pet Insurance Worth It?
Most if not all veterinarians will tell you that pet insurance is absolutely worth it a million times over. We are huge advocates for pet insurance because you can provide better care for your pet in the long term no matter what comes your way. It essentially takes finances out of the picture because pet insurance pays for itself over the life of your pet. Take, for example, a puppy with even mild skin allergies. As an astute pet owner, you’ll obviously want to take care of those, so your new fur baby isn’t miserable, and you’ll probably have paid your premium within six months of this treatment.
Unfortunately, some pets can get very sick quickly—it’s an inevitable part of life that we see day in and day out as veterinarians. If this happens to your cat or your dog, you’re forced to come up with sometimes thousands of dollars in a short period of time, a situation that is unmanageable for many people. Pet insurance helps take this worry away because you’re paying a relatively small copay over the long term, so you’ll pay something like $200 versus $2,000.
What Does Pet Insurance Cover?
Most pet insurance policies cover illness or injury, although some plans include dog wellness or cat wellness. Typically, though, pet insurance covers when the animal gets sick or injured. Just as with anything else, you should expect to spend time researching what policy works best for your pet and your lifestyle. Focus on what you can afford as a monthly payment that will give you the lowest deductible possible. If having a plan that includes wellness is important to you, ask your veterinarian if they know any companies that offer this.
What Can I Expect to Pay Before My Pet’s Care is Covered?
Like premiums, pet insurance deductibles can vary. Some insurance providers offer fixed deductibles, while others allow you to set your own—which also gives you more control over your monthly payment (higher deductibles typically equal lower premiums and vice versa).
Deductible schedules can differ as well. Unlike traditional annual deductibles — which are applied to all conditions and reset every year — some providers require deductibles to be paid per condition. These policies require you to meet your deductible each time your pet develops a new medical condition. Per-condition deductibles can reset annually or may only be required to be met once during your pet’s lifetime.
What Are Pre-existing Conditions When it Comes to Pet Insurance?
Like humans, pet pre-existing conditions are events or pet illnesses that are already present and/or have a reasonable chance of occurring or reoccurring based on previous symptoms. Most pet insurance companies will not provide premiums to those pet parents with dogs or cats with preexisting conditions.
Unfortunately, things that happen during the enrollment waiting period — such as a dog licking their paws due to allergies or a cat developing a mass on their back — are considered pre-existing conditions and can be grounds for rejection. However, some companies will not cover these preexisting conditions but will still accept your application and only cover any new illnesses or injuries.
As we mentioned earlier, though, the best way to ensure that your application is accepted is to enroll your cat or dog when they are young and healthy, so you can ease your own financial burden and provide the best care for your pet over their lifetime.
Is There An Age Limit for Pet Insurance?
Unlike with health insurance for humans, pet insurance plans can often come with age restrictions – with the most common restrictions being for very young pets, like puppies and kittens, and older pets, like senior dogs and cats. However, as we’ve mentioned before, the exact age limits, if any, for your pet insurance can vary based on the insurance provider and overall plan coverage.
Many pet insurance providers allow pets to be enrolled in an insurance plan once they are at least six eight weeks old. When it comes to older pets, some providers have an age cap due to senior pets often needing more medical care and generally being more expensive. Age restrictions vary from provider to provider, with cutoffs most commonly between ages 10-14.
Some pet insurance providers may not have an age limit at all! So, if you have a pet that is approaching its senior years, be sure to ask about age limits when selecting a new plan to ensure you’ll be able to have uninterrupted coverage as your pet ages.
How to Determine What Pet Insurance Is Right for Your Pet
Choosing the right pet insurance for your pet involves considering a number of factors, including your pet’s health and your own financial situation. When researching pet insurance providers and plans, first, assess your pet's age, breed, and overall health to determine what type of coverage they might need. For example, if you have a breed prone to certain hereditary conditions, it might be wise to select a plan with comprehensive coverage that includes treatment for these issues, as well as any accidents or mishaps that might happen along the way.
Next, consider your financial situation. Owning a pet is already a big expense and more comprehensive pet insurance plans with fewer restrictions can get pretty costly. Determine how much you can afford to pay in monthly premiums and whether you’re willing to pay a higher deductible to lower your premium costs. Make sure to also check the reimbursement rate and whether there are any limits on payouts, as these will really matter once you’re really using your pet insurance!
No matter what type of plan or coverage you need, it’s incredibly important to do your due diligence on potential providers. Unlike with most human insurance plans sponsored through providers, you often won’t be limited on what pet insurance provider you can choose, so doing your own research on the different options will be incredibly important. Read reviews and seek recommendations from your veterinarian, as they may have insight into which providers are reliable and offer the best coverage for your pet's needs. Don’t forget to read the fine print regarding pre-existing conditions, age limits, and any exclusions that might apply to the plan you’re considering! These little details can make or break your pet insurance investment.
Finally, remember that the best pet insurance plan is one that provides peace of mind knowing that your pet will have access to necessary medical care without causing financial strain!
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