If you are like most pet owners, you would do anything for your pet when it is sick. However, veterinary bills can add up quickly, especially if pets need emergency care or treatment for a chronic illness. Pet insurance can help plan for these costs. It’s not cheap, but it can pay for itself if your furry companion needs expensive care.
How does pet insurance work?
There are two types of coverage offered by pet insurance plans: accident-only coverage or accident and illness coverage. Most pet owners go for the latter option. This differs from pet liability coverage found in homeowners or renters insurance, which covers legal expenses and bodily injury to others and property damage caused by your pet.
Like health insurance plans for humans, pet insurance plans have deductibles, copays, annual and lifetime limits, and waiting periods. Typically, coverage is excluded for pets younger than 8 weeks or older than 12 years, in addition to those with pre-existing conditions.
Note: Coverage and specific limits vary by insurance company. For example, some plans have annual or lifetime limits with no caps, while others allow you to choose lower limits for a more affordable premium. Some insurance companies also let you choose your preferred veterinarians and clinics, while others require you to use in-network clinics.
Generally, you pay veterinary expenses out of pocket and then submit a covered claim for reimbursement. Some pet insurance companies can pay the veterinarian directly, but there may be some preceding paperwork required from you or the veterinarian, and there may be restrictions on when the service can be used. It’s best to ask the pet insurance company about its reimbursement options.
What does pet insurance cover?
Accident-only policies cover unexpected accidents and injuries like sprains, toxin ingestion, and wounds. Accident and illness policies extend to cover illnesses, diseases, and diagnostic treatments, and may include:
- Congenital or hereditary conditions
- Cancer treatment
- Dental procedures
- Cost of prescribed foods
- Medical advice
- Medical equipment
- Physical therapy
- Prescription medications
- Dietary supplements
- Surgeries
Annual deductibles typically range from $0 to $1,000, and annual limits may be as low as $2,500 or unlimited. Deductibles are covered pet health expenses that you must pay before insurance coverage kicks in, while annual limits are the maximum annual reimbursement amounts from your insurance company for your pet.
Some insurance companies also offer preventive and wellness coverage, usually as add-ons for an additional fee. These services may include:
- Blood tests
- Dental cleanings
- Worming
- Flea and heartworm preventive medications
- Genetic testing
- Heartworm testing
- Pet microchipping
- X-rays
- Check-ups
- Spaying or neutering
- Urinalysis
- Vaccinations
- Wellness exams
What pet insurance doesn’t cover?
Most pet insurance companies do not cover pre-existing conditions, and some may even exclude certain conditions when renewing the policy if they were treated or diagnosed during the previous coverage period.
Additionally, much of what you find in core pet insurance coverage is excluded from optional preventive and wellness coverage, as well as:
- Boarding or lodging
- Conditions or accidents that occur during waiting periods
- Experimental or non-standard treatments
- Over-the-counter foods and supplies
- Transportation
It is common to have a waiting period after enrolling in pet insurance for about two weeks for accidents and illnesses. Issues that arise during this period are typically treated as pre-existing conditions and excluded from coverage.
Some pet insurance companies do not fully cover bilateral conditions (medical issues that occur on both sides of the body). For example, if you have a pet with a hip deformity on one side as a pre-existing condition, and it develops on the other side during insurance, pet insurance may not cover the treatment for the recently affected side. Even when both sides of the condition develop during insurance, the insurer may only pay for treatment on one side.
Note:
Treatments excluded may also vary by breed. This is especially true for genetic conditions specific to certain breeds. Make sure to read the legal text of the policy and ask questions before signing, so you know you have the coverage you expect.
Is Pet Insurance Worth It?
Based on average expenses, a visit to a pet emergency room that includes an initial consultation, general examinations, x-rays, and surgery can cost over $3,000 for cats and $5,000 for dogs. Cancer treatments can range around $10,000. However, an accident and illness policy can cover some or all of these costs at a fraction of the price. Here’s an idea of pet insurance costs with popular pet insurance companies:
| Insurance Company | Two-Year-Old Dog | Eight-Year-Old Dog | Two-Year-Old Cat | Eight-Year-Old Cat |
|---|---|---|---|---|
| ASPCA Pet Health Insurance | $45.82 per month | $91.64 per month | $19.74 per month | $32.90 per month |
| Nationwide | $35.34 per month | $98.61 per month | $17.16 per month | $37.40 per month |
| Fetch by The Dodo (formerly Petplan) | $42.28 per month | $137.05 per month | $20.16 per month | $38.90 per month |
| Pets Best Insurance | $27.61 per month | $65.80 per month | $11.52 per month | $27.47 per month |
| Figo Pet Insurance | $30.63 per month | $78.37 per month | $16.73 per month | $33.19 per month |
Costs can vary based on factors such as:
- Animal’s age
- Breed
- Coverages, deductibles, and limits
- Gender
- Geographic location
- Type
Note: You may be able to save more on policies with discounts like multi-pet insurance, military, employee benefits, predictive surgical/experimental programs, and full payment.
Should I Get Pet Insurance?
Pet insurance is suitable for those who prefer a monthly payment rather than large out-of-pocket expenses, for those with multiple pets, and for pet owners who are not prepared to pay unexpected veterinary bills.
However, premiums can be high. According to our research, you might pay over $1,600 annually for an older dog. For those who do not want or cannot afford pet insurance, alternatives like credit financing, setting up a pet savings account, financial assistance programs, and discount programs (like Pet Assure) can make veterinary expenses more manageable.
Methodology
We used Labrador Retrievers and Ragdoll cats as our hypothetical animals for comparison. Basic accident and illness policies from Illinois were compared, which included annual deductibles of $500, annual limits of $5,000, and reimbursement levels of 80%.
Source: https://www.thebalancemoney.com/what-is-pet-insurance-5081826
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