You love your four-legged friend, but caring for them can get pricey. Routine care such as an annual checkup and vaccines likely won't derail your budget, but what happens if Rover eats a sock or Whiskers develops the telltale signs of diabetes? Could you afford to pay for treatment?
Emergency veterinary surgical procedures can cost up to $5,000 on average, while hospitalization will set you back up to $3,500. And these figures don’t account for diagnostic tests usually required before treatment, so your surprise vet bill could hit a whopping five figures.
Fortunately, you can avoid any heart-wrenching scenario with pet insurance. Pet insurance works similarly to health insurance for humans: Based on policy parameters, your insurer will pay up to a set amount for covered conditions.
Pet insurance can help you turn potentially devastating circumstances into a financially manageable situation. Here, we’ll discuss the ins and outs of pet insurance coverage so that you can determine what type of plan works best for you and your furry family member.
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Types of Pet Insurance Coverage
There are two main types of pet insurance plans: Accident and illness coverage and accident-only coverage.
As the name implies, accident and illness coverage is more comprehensive. It pays for a range of treatments if your pet gets injured or sick. Your policy could come in handy if your pup tears a muscle playing fetch or is diagnosed with cancer.
On the other hand, accident-only pet insurance only pays for treatment for accident-related medical concerns. For example, an accident-only policy would kick in if another dog attacked your dog in the park. However, it won’t help if your dog gets an ear infection or diabetes.
Generally, neither type of plan covers wellness visits or preventative care. That means you’ll need to pay out of pocket for checkups, vaccinations, flea and heartworm treatments, and other non-urgent care. If you’d like preventative care insurance, you’ll likely need to purchase add-on coverage for your accident and illness plan. Typically, you can’t elect this coverage if you have an accident-only plan.
What Does Each Type of Plan Cover?
The table below summarizes the coverage you can expect under each plan type.
Plan Type | Best For | Covered Issues |
|---|---|---|
Accident and Illness Coverage | Pet owners who want (and can afford) comprehensive coverage | Diagnostic testing, treatment, surgery, and hospitalization related to issues like:
|
Accident-Only Coverage | Pet owners who want to save money on premiums but still want some coverage | Diagnostic testing, treatment, surgery, and hospitalization related to issues like:
|
Wellness or Preventative Care | Pet owners who want coverage for both routine and non-routine care |
|
Please note: This article provides general information and does not constitute a complete list of possible covered conditions. Every insurance plan is different, so reading through your policy documentation is critical to understanding the specifics that apply to you and your pet.
Exclusions and Limitations
Even the most comprehensive pet insurance coverage has limitations. Here are some common exclusions you may see in your policy:
Pre-existing conditions (especially chronic or incurable issues)
Hereditary conditions
Experimental or investigational procedures
Cosmetic procedures (such as ear cropping)
Elective procedures (such as dewclaw removal)
Behavioral therapy
Grooming appointments
Food and dietary supplements
Breeding expenses
Non-medical costs (like dog or cat licensing fees)
Your insurer may also restrict certain animals and limit the age range it will cover. For instance, most pet insurance companies only issue policies for dogs and cats. Many insurers won’t protect your pet if it’s less than six weeks old, and some cap the age of initial enrollment to 8 to 14 years of age.
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Additional Coverages and Benefits
If your base policy excludes benefits you want, you may be able to purchase additional coverage for:
Preventative and wellness care, including dental treatment
Behavioral therapy to address aggressive or compulsive actions
Final expenses like cremation or burial
Rehabilitation or physical therapy sessions
Alternative treatments like acupuncture
Boarding fees if you’re hospitalized for an extended period
You might also be able to get liability coverage, which pays out if your pet causes damage to someone else’s property. However, your homeowner’s insurance policy may protect you in these situations, so it’s wise to review your existing coverage before buying more insurance.
Cost Factors and Affordability
According to the North American Pet Health Insurance Association (NAPHIA), these are the average annual pet insurance premiums as of 2023:
| Pet | Accident and Illness | |
|---|---|---|
Cat | $383 ($32/mo.) | $116 ($9-10/mo.) |
Dog | $676 ($56/mo.) | $204 ($17/mo.) |
Your insurance policy may cost more or less than average based on several factors, including:
Pet type and breed. Dogs generally tend to cost more to insure than cats. Some breeds are prone to certain conditions, increasing the insurer’s risk.
Pet size. Larger animals usually cost more to insure.
Pet age. Older pets generally need more medical care, making them more expensive to insure.
Insurance plan type. Accident and illness coverage costs significantly more than accident-only coverage because it covers a broader range of conditions.
Pre-existing condition coverage (if included in your policy). Coverage for a pre-existing condition, if available, can result in a higher premium or deductible.
Your deductible. Policies with a higher deductible usually have a lower premium (and vice versa).
Your reimbursement level. The more your insurer promises to reimburse you for covered treatment (usually between 70-90%), the higher your premium.
Your location. Veterinary care costs vary from ZIP code to ZIP code.
If you’re on a tight budget, there are several things you can do to keep your pet insurance premium in check. Raman Singh, certified financial planner (CFP®) and pet insurance policy owner, advises assessing your potential insurance cost before you welcome a new cat or dog into your home. "If you are considering getting a pet, one way to lower your costs is to research the breed you are getting."
For those already with pets, Singh suggests that you "consider increasing your deductible and copays, paying premiums annually, lowering or adjusting your insurance benefit amount, or removing any optional riders on the policy” to save money.
Choosing the Right Plan for Your Pet
There are several factors you should evaluate when selecting a pet insurance policy, including:
Plan coverage. Does the policy cover what your pet needs? Does the protection seem adequate? Is anything essential excluded from the plan?
Insurance costs. Does the monthly or annual premium fit your budget? Can you afford the deductible?
Claims process. Does the insurer pay your veterinarian directly (not common) or reimburse you for covered services (more likely)? How quickly do claims get processed? How often do claims get denied?
Customer service. Is it easy to reach a company representative? Do employees come across as friendly and helpful? Do reputable review sites (like Trustpilot or the BBB) offer insight into a company's customer service?
Insurer reputation. What do current (and former) customers say about the company? Has the organization been involved in any lawsuits or scandals? Is the firm financially sound?
You should also consider any waiting periods or coverage limits imposed. While some insurers offer unlimited coverage, others may cap your claims on an annual, lifetime, or per-incident basis.
How to Apply for Pet Insurance
If you’re ready to buy pet insurance, follow these steps to secure the best coverage for your situation:
Set a budget. Know how much you can afford before you start shopping around.
Assess your pet’s needs. Consider your pet’s age, activity level, pre-existing conditions, and potential hereditary conditions.
Research potential insurers. Ask your family and friends for referrals or compare the best pet insurance services to learn about the major players in the industry. Then, comb through each company’s website, where you may be able to read sample policies.
Obtain and compare multiple quotes. For best results, be sure the quotes feature the same coverage, deductible, and reimbursement level.
Follow the insurer’s application process. Once you’ve picked a pet insurance company, complete the required forms and submit any requested documentation. Your pet may need a medical exam.
Review the fine print. Read your policy documents carefully before officially enrolling (and spending any money).
Go through your plan’s waiting period. You may have to wait a few days to a couple of weeks for your policy to kick in.
Start using your coverage. See any vet you choose (as long as they’re licensed) and follow your insurer’s claims procedure.
As your cat or dog ages, it will become harder to insure them. However, if you pay the premium, your current insurer will likely keep your policy intact indefinitely. So, while you don’t have to stay with the same pet insurance company forever, you should take your time when selecting one, aiming to maintain the relationship for the life of your pet.
Singh offers this last piece of advice: “Pet insurance effectively mitigates significant financial risks associated with pet injuries or illnesses. However, it's crucial to prioritize annual wellness exams to stay informed about your pet's health status.
Moreover, establishing a monthly pet savings account can provide a financial safety net if your pet encounters an unexpected illness or injury. This proactive approach ensures both your pet's well-being and financial preparedness.
