Pet insurance helps protect pet parents against overwhelming vet bills from accidents or illnesses, and can even provide wellness care for an additional fee. But pet insurance premiums and other associated costs add up, so owners are right to question their true value. Below, we review important considerations so you can decide if it’s worth it for you.
What does pet insurance cover?
Pet insurance coverages vary by provider, so it’s essential to read the fine print to see what’s included. The most common policies cover accidents and illnesses, although some pet owners opt for accident-only policies. Providers often offer preventive and wellness care as a supplement to accident and illness policies.
Here are the coverages you might see in a very comprehensive plan, including preventive and wellness care:
Accidents: Broken bones, ingestion of objects, medical procedures, and services that aid recovery, testing, and diagnosis.
Diseases: Skin conditions, thyroid diseases, medical procedures, and services that aid recovery, testing, and diagnosis.
Behavioral Therapies: Excessive barking, licking, and digging therapies.
Alternative therapies: Acupuncture, chiropractic, and physiotherapy.
Prescription drugs, foods, supplements. : Treatment of acute and chronic diseases such as diarrhea and diabetes.
Preventive care: Routine exams, yearly shots, and heartworm preventive medications.
How much does pet insurance cost?
Average annual premiums for accident and illness policies are $585.40 for dogs and $349.93 for cats, while costs per accident are $194.09 for dogs and $126.08 for cats. Accident-only plans can cost about 60% less than accident-and-sickness plans.
Wellness coverages are typically offered as add-ons to accident and sickness policies and can cost an additional $9 to $26 per month (or more), depending on how comprehensive the plan is.
But in reality, you could pay more for your pet’s insurance. Here are factors that can change these numbers.
Premium Price Increases
Many insurers significantly increase premiums as pets age, making what was once an affordable policy unaffordable. In some cases, for example, our quotes for an eight-year-old dog were nearly $95 more per month than for a two-year-old. Rising veterinary care costs, changing trends in pet populations, and changes in discounts can also increase premiums.
pet characteristics
In addition to age, race and gender can influence your premiums. For example, smaller dogs and mixed breeds may have lower risk ratings and be cheaper to insure. while larger dogs and those prone to certain conditions, such as hip dysplasia, are often more expensive.
Policy Selections
Pet plans generally have deductibles, limits, and coinsurance percentages that are added to the out-of-pocket costs of covered claims. You’ll get higher reimbursement from insurers if you select higher limits and lower deductible and coinsurance percentages. But it will cost you more in monthly premiums.
Location
Pet insurance rates generally vary by state and area. In urban areas, veterinary services tend to cost more, so urban dwellers may pay more for coverage.
pros
- You can make pet treatments and services more affordable
- Give pet owners peace of mind
- Keeps more emergency savings intact
- Discounts and policy options can lower costs
Cons
- Not all veterinary care is covered.
- Must pay vet bills in advance
- It May cost more than paying out of pocket
- Coverage is more expensive or not available for older pets
pros explained
- You can make pet treatments and services more affordable: By paying annual or monthly premiums, the insurance company bears most of the covered expenses.
- Gives Pet Owners Peace of Mind: If you don’t have a large emergency fund (or any), you may not be prepared to tackle a major or life-saving veterinary expense. Many pet owners choose insurance so they don’t have to choose between their finances and their pet’s well-being.
- Keeps more emergency savings intact: Even if you have an emergency fund, you may prefer to keep that money available for your emergencies rather than ongoing or emergency medical care for your pet.
- Discounts and policy options can lower costs: You may be eligible for multi-pet, military, pay-in-full, and other discounts that lower monthly premiums. Many major pet health insurers also allow you to choose deductibles, limits, and reimbursement levels so policies best fit your budget.
Disadvantages Explained
- Not all veterinary care is covered. : Pet policies come with a lot of fine print detailing exclusions, limitations, and maximum coverage amounts. Pre-existing conditions and breed-specific issues may be excluded from coverage, and even covered conditions have maximum coverage amounts.
- You must pay vet bills upfront: Unlike most human health insurance policies, you must pay for services upfront and are responsible for submitting the claim yourself to receive reimbursement.
- May cost more than paying out of pocket: Like other insurance, it’s only available if you need it. If you don’t need it, you still have to pay for it.
- Coverage is more expensive or not available for older pets: Premiums for older pets are more expensive than premiums for younger pets. And most insurers don’t cover pets over 12 years old.
What factors should I consider?
Certain circumstantial factors could change the value of pet insurance policies.
pet lifestyle
Consider your pet’s lifestyle. For example, cats that live outdoors are exposed to more hazards than those that are indoors, such as moving vehicles and wildlife encounters and therefore are more likely to need medical attention. On the other hand, active dogs may have fewer health problems than obese or sedentary ones, so you won’t need as many trips to the vet.
pre-existing conditions
It will be difficult to find an insurer that covers a pre-existing condition before enrollment, so pet insurance won’t help here. But if you register, the same situation may be covered in the future if your pet is cured and symptom-free for a specified period, such as 180 days.
hereditary conditions
You can ask your veterinarian about the diseases your pet is predisposed to and the costs of treating them. While many insurers cover hereditary conditions, it’s crucial to read the agreement to learn about waiting periods and what may not be covered based on your pet’s breed. For example, insurers may not cover treatments for narcolepsy in Labrador Retrievers and cardiomyopathy in Maine Coons.
Mixed breeds have fewer genetic problems than pure breeds, so pet insurance can be used less (and will likely cost less).
Should you get pet insurance?
Getting a pet insurance policy comes down to your answers to questions like:
- “What is the probability that my pet will need medical attention now and in the future?”
- “Do the plans cover the conditions my pet is most at risk for?”
- “Can I pay the ongoing premiums or can I save and pay for the treatments out of pocket?”
It’s also important to consider age limits when signing up and how premiums or policies may change as your pet ages.
Like many insurance products, pet insurance provides peace of mind about paying sudden and large vet bills. For some, that makes it worth the cost. But for others, peace of mind can be purchased at a lower price with an accident-only policy. These policies still cover claims for things like broken bones, sprains, animal bites, and diagnostic fees. Insurers may even cover ligament injuries.
Accident-only policies can be great for puppies and kittens who tend to be healthier, but whose curiosity leads them to gulp down a lot more than kibble.
For others, limits, disease exclusions, and fine print trappings make the overall value of pet insurance too uncertain and difficult to judge. In these cases, seeking treatment, creating a pet fund, or using financing options can make vet bills affordable enough that pet insurance is a less attractive option.
