Key takeaways
- Pet insurance can provide a financial cushion for emergencies, surgeries and therapies.
- Pet insurance costs depend on your pet’s age, breed, current health conditions and where you live.
- The list of covered conditions differs between pet insurance plans and companies.
Pet insurance provides peace of mind. It helps cover treatments, surgeries and even things like dental care or alternative therapies. The catch? There are monthly premiums and deductibles, and your plan may not cover everything.
An Experian survey on pet insurance revealed that 92 percent of pet owners who have pet insurance say it’s worth it. Yet, only 29 percent of pet owners surveyed said they had pet insurance.
Determining whether pet insurance is worth it comes to weighing cost vs. benefits. Get familiar with how pet insurance works, what it does and doesn’t cover and alternative ways to pay to decide if is right for you and your pet.
How pet insurance works
Many of us consider our pets family members. Legally, though, they are considered property. Ther health coverage is more like car insurance than human health insurance. That’s because it considers your pet’s age, breed and where you live.
Types of pet insurance plans
Pet insurance plans offer different levels of coverage and types of options depending on your choice. There are three main plans: accident only, accident and illness and wellness plans.
The most common pet insurance plans are comprehensive plans that cover accidents and illnesses. These are sometimes called “nose-to-tail” policies. They also come with the biggest price tag. Accident-only or wellness plans cost less but do not cover as many medical situations. You can also purchase add-ons and preventive care packages.
It’s important to compare pet insurance plans to see what different providers offer. And be sure to read the fine print for details on waiting periods and a full list of limitations.
Premiums and deductibles
Pet insurance premiums — the fees you pay for coverage — are determined based on factors like your pet’s age and breed, where you live and how much coverage you want.
For example, dog owners with accident and illness plans paid an average of $675.61, or $56.30 per month, in 2023. Cat owners were set back $383.30 per year or $31.94 monthly.
These prices are based on the pet insurance company’s deductibles (ranging from $250 to $1,000), reimbursement percentage (typically between 70 percent and 90 percent), and annual coverage limits (ranging from $2,500 to $10,000).
Treatment
Pet insurance does pay for treatment, but there are two important factors to consider. First, you want to verify what’s covered before you go to the vet so you’re not surprised when you file the claim. Second, you usually have to pay the vet upfront when you take your pet in for treatment.
Before you leave the vet’s office after treatment, get the paperwork to file a claim. This generally includes an invoice or receipt and a form filled out and signed by your vet. You can do this later, but it’s easier to do it immediately.
Claims
Filing a claim may look different from one insurer to the next.
Some pet insurance companies have apps or online portals that make submissions easy and efficient. Others might request the paperwork via email or even fax.
The processing time can vary from a few minutes to around 30 days. Again, this will depend on your insurer’s process. With Lemonade, for example, about 50 percent of claims are handled instantly.
Bankrate insight
If your insurer offers direct vet pay, it will pay the vet directly, leaving you with no out-of-pocket expenses besides your deductible and co-insurance. Note that even if your insurer offers direct vet pay, not all vets accept payment this way.
Reimbursement
If your claim is approved, the insurer reimburses you for the covered expenses. Your reimbursement amount depends on your policy’s terms, including the reimbursement rate and the deductible you agreed on when you bought the policy.
For example, if your policy covers 80 percent of costs and you have a $100 deductible, you would receive 80 percent of the vet bill after subtracting the deductible.
Depending on your preferences and your agreement with your insurer, you will typically receive your reimbursement via direct deposit or check.
What pet insurance covers
Pet insurance covers a range of issues, depending on your plan. While this is not a comprehensive list, most plans cover some or all of the following:
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- Bite wounds
- Cuts and lacerations
- Fractures
- Injuries from car accidents
- Poisonings
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- Blood tests
- Lab tests
- MRIs
- Ultrasounds
- X-rays
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- Allergies
- Cancer treatments
- Chronic conditions (such as diabetes or arthritis)
- Gastrointestinal issues
- Infections (such as ear infections or urinary tract infections)
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- Allergy medications
- Antibiotics
- Long-term medications for chronic conditions
- Pain relievers
- Prescription medications
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- Emergency surgeries (such as foreign object removal)
- Orthopedic surgeries (such as cruciate ligament repair)
- Soft tissue surgeries
- Tumor removals
Ultimately, you need to pay attention to the fine print of what is and isn’t covered in your policy. There is no cookie-cutter format from one comprehensive plan to the next. The same goes for accident-only plans and preventive add-ons.
Many pet insurance companies offer customizable coverage. So, if something isn’t covered under your main plan, you may be able to choose add-ons.
What pet insurance doesn’t cover
Pet insurance comes with many exclusions, which vary from one policy to the next. Here is a list of things typically not covered by a comprehensive pet insurance plan. Some providers might still offer some coverage even if most don’t.
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- Behavioral modification programs
- Training
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- Conditions known to be common in specific breeds, like hip dysplasia in large dogs
- Hereditary conditions in certain breeds (unless covered by specific plans)
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- New or alternative therapies not covered by the policy
- Treatments that are not widely accepted or proven
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- Cosmetic surgeries (e.g., ear cropping, tail docking)
- Declawing
- Non-essential cosmetic treatments
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- Chronic illnesses diagnosed before policy initiation
- Conditions your pet had before the start of the policy
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- Annual wellness exams
- Dental cleanings
- Flea, tick and heartworm prevention
- Spaying/neutering
- Vaccinations
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- Exotic pets and horses
- Newborn puppies
- Working animals
You can buy coverage for many of these items as an add-on.
Though not typically covered, a few insurers offer policies that cover exotic pets, horses, working animals, breeding dogs and newborn puppies. These policies may come with a hefty price tag.
Cost of vet care with insurance vs. without insurance
There’s no getting around it — owning a pet is expensive. A dog or cat can cost you up to $5,000 per year. Not having insurance can add thousands to that amount, which you would have to pay out of pocket with zero reimbursement.
Below are a few examples of the average costs you can expect to pay for vet care (for a large dog) with and without insurance.
| Routine vet visits | |
|---|---|
| Without insurance | Routine check-ups cost $100–$150. |
| With insurance | Coverage for routine care varies, but wellness plans or vet visit add-ons may cover these costs. |
| Wound treatment and repair | |
|---|---|
| Without insurance | Wound treatment and repair can range from $1,000–$2,000. |
| With insurance | Insurance can cover 70 percent to 100 percent of these costs after the deductible, significantly reducing out-of-pocket expenses. |
| Surgery | |
|---|---|
| Without insurance | Major surgeries can cost between $2,000 to $5,000. |
| With insurance | Depending on the plan, out-of-pocket costs could be reduced by thousands of dollars. |
Other ways to pay for veterinary costs
If you’re unsure about the cost of pet insurance, there are some alternative ways to pay for veterinary costs.
Pet savings account
Setting up a dedicated pet savings account is a practical alternative to pet insurance. By regularly saving a set amount each month, you can build a financial cushion for routine care and emergencies.
Medical credit card
Some credit cards are designed for medical expenses, including veterinary services. These cards offer various financing options, such as extended payment terms or no-interest periods. This allows you to manage high-cost treatments by spreading payments over time.
Be aware of the terms, as deferred interest can accumulate if the balance isn’t paid off within the promotional period.
Car insurance
If you have car insurance, you might already have some coverage for your furbaby. Check your policy or ask your broker about car insurance for your pet. Companies like Progressive and Metromile pay up to $1,000 for pets injured in a car accident, which can soften the financial blow of an unexpected vet bill.
Employee benefits
According to HR Executive, 16 percent of companies offered pet insurance as of 2023 as a way to increase employee retention. The number of companies offering pet insurance or other discounts for pet products and services as part of employee benefits continues to increase each year. Check with your HR manager to see what types of pet benefits are available to you.
Pet loans
A personal loan for pet expenses can be a good solution for some people, providing access to the funds when an emergency arises. However, there are pros and cons to consider when taking this route. Do your homework and make an informed, financially sound decision.
How to decide if pet insurance is right for you
Besides your financial situation, your pet’s age, breed and current health conditions are the biggest factors in deciding if pet insurance is worth the cost.
The younger and healthier your pet is, the more it makes sense to insure them because you can avoid pre-existing condition exclusions and pay lower premiums. Older dogs and cats with existing health issues might face higher costs or may not be insurable.
For example, a quote for complete coverage from ASPCA Pet Insurance company for a medium-sized two-year-old puppy in Houston can be as low as $21 a month. However, the annual premium for a medium-sized 10-year-old dog in Houston starts at $70 a month.
Your pet’s breed is another huge factor in cost and coverage — especially for dogs. Many breeds are prone to specific conditions that aren’t covered by insurance or will result in higher premiums if you decide to insure them.
The bottom line
Caring for a pet goes beyond providing a loving home to ensuring their health and welfare. When there’s an emergency, accident or illness, pet insurance can help ease the financial strain of paying for veterinary care.
To decide if pet insurance is worth it for you, compare quotes from top pet insurance companies and ask about add-ons and other customizable options. If you’re on a limited budget, consider a cost-effective accident-only plan. If your pet is relatively healthy, consider contributing monthly to a pet savings account to avoid paying premiums for pet insurance you don’t use.
Regardless of your decision, it’s important to assess your ability to cover unexpected vet bills out of pocket without insurance.
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