While pet insurance might help you save money on vet care, coverage costs vary based on several factors, including the company and coverage level you choose and your pet’s age and health. Luckily, our best pet insurance companies offer reasonable rates and multiple coverage options. This guide will give you insight into costs, how to save on coverage, and help you make an informed decision for your pet's health and your finances.
What Is Pet Insurance?
Pet insurance is health coverage for your animal companion, helping to offset medical care costs. It operates similarly to human health insurance: you pay premiums for coverage, and the insurer reimburses you for eligible veterinary expenses.
How Does Pet Insurance Work?
Most pet insurance policies operate on a reimbursement model. Here's a typical scenario:
Your pet needs medical care, so you take them to the vet.
You pay the vet bill upfront.
You submit a claim to your pet insurance company.
The insurer reviews your claim and reimburses you for covered expenses.
The amount you're reimbursed depends on your policy's coverage level, deductible, and reimbursement rate. Some policies, like those offered by Spot Pet Insurance, allow you to choose an annual coverage limit ranging from $2,500 to unlimited. While other policies have per-incident limits.
It's worth noting that while most pet insurance plans reimburse you after you've paid the vet, some policies offer direct payment to veterinarians. However, these are less common.
What Does Pet Insurance Cover?
Coverage varies by policy but typically includes:
Diagnostic tests (X-rays, MRIs, blood work)
Treatments for accidents and illnesses
Medications
Surgeries
Emergency care
In some cases, it may also pay for a portion of your pet’s wellness exams, but you’ll likely pay higher rates for that type of coverage. When choosing a plan, it's crucial to understand coverage for pre-existing conditions in pets, as most standard plans exclude these.
Types of Pet Insurance Policies
There are three main types of pet insurance policies:
Accident-only plans: These provide coverage for injuries resulting from accidents, such as broken bones or ingestion of foreign objects. They're typically the most affordable option. ASPCA Pet Health Insurance, for example, offers accident-only plans that can be a good choice for budget-conscious pet owners.
Comprehensive plans: Also known as accident and illness plans, these cover both accidental injuries and unexpected illnesses, including conditions like cancer or arthritis. Embrace Pet Insurance is known for its comprehensive plans, which offer extensive coverage for a wide range of conditions.
Wellness plans: Often offered as an add-on, these plans cover preventive care such as annual check-ups, vaccinations, and dental cleanings. Pets Best, for instance, provides wellness plans that can be added to their accident and illness coverage for more complete protection.
Factors That Influence the Cost of Pet Insurance
Several factors can affect your pet insurance premiums, such as:
Age: Older pets typically incur higher premiums due to increased health risks.
Breed: Different dog breeds have varying insurance costs based on health risks.
Location: Regional differences in veterinary care prices impact insurance rates.
Coverage: More comprehensive plans generally come with higher premiums.
Deductible: Choosing a higher deductible usually lowers your monthly premium.
Average Cost of Pet Insurance in 2024
According to the North American Pet Health Insurance Association (NAPHIA), here are the average annual premiums for pet insurance in the United States:
Pet Type | Comprehensive Plan | Accident-Only Plan |
|---|---|---|
Dogs | $675.61 ($56.30/month) | $204.16 ($17.01/month) |
Cats | $383.30 ($31.94/month) | $116.11 ($9.68/month) |
How Different Coverage Levels Impact Cost
The cost of your premiums will depend, in part, on the type of coverage you choose. Accident-only plans provide basic coverage and tend to be the cheapest option, while comprehensive coverage is likely to cost more. Adding a wellness plan will increase your premiums even further. Still, more coverage could pay off if your pet falls ill or is injured.
Here’s what the different plans might cover. Note that every plan is different, and your coverage will vary based on your insurer and policy:
Accident-only plans: Broken bones, broken teeth, bites, cuts, accidental toxin or foreign object ingestion.
Comprehensive plans: All the coverage of an accident-only plan, plus treatment for unexpected conditions like infections, cancer, arthritis, or ear infections.
Wellness plans: Routine vet checkups, dental cleanings, flea and tick medication, heartworm medication, vaccinations, and spay/neuter surgery.
Ways to Lower the Cost of Pet Insurance
If you’re interested in buying pet insurance but are concerned about high costs, there are several tips for reducing your pet insurance costs, including:
Choose a higher deductible: Your deductible is what you pay out of pocket before your pet insurer pays your claims. Choosing a higher deductible means that your upfront costs will be higher, but your premiums will be lower.
Opt for basic coverage: A basic accident-only policy will generally cost less than comprehensive coverage. While less coverage means less protection, your pet is still insured if injured in an accident.
Take advantage of discounts: Lemonade, for instance, provides policy bundling discounts, while Fetch gives AARP members 10% off. You can also check for discounts through your employer or affiliated organizations to potentially lower your premiums.
Get coverage early: Buying coverage when your pet is young will also make your premiums more affordable. Older pets may be at a higher risk of developing certain conditions, and insurance companies account for this risk with higher rates.
Get multiple quotes: Pet insurance rates aren’t level across different companies; you might pay more for a policy with one than you would with another. Consider comparing quotes from multiple companies to better understand costs, and opt for the cheapest option that meets your needs.
The Cost of Pet Insurance vs. Paying Out-of-Pocket
To understand the value of pet insurance, let's compare the costs:
Routine Care:
- Annual check-up: Up to $250
- Bloodwork: Up to $200
- X-rays: Up to $250
- Ultrasound: Up to $600
Emergency Care:
Emergency vet visit: $100-$200 (exam only)
Emergency surgery and hospitalization: Up to $10,000 or more
Now, let's look at a scenario:
You have a pet insurance policy that costs $600 per year, with a $100 deductible and 80% reimbursement rate. Your dog accidentally ingests chocolate and needs emergency treatment costing $2,000.
Without insurance, you'd pay the full $2,000. With insurance, here's how it breaks down:
You pay the $100 deductible
The remaining $1,900 is eligible for reimbursement
Your insurer covers 80% of $1,900, which is $1,520
Your total out-of-pocket cost: $480 ($100 deductible + $380 your share of the bill)
In this scenario, even accounting for your annual premium, you'd save $920 with insurance.
Frequently Asked Questions About Pet Insurance Costs
Is pet insurance worth it?
Pet insurance can be worth the cost, especially if your pet needs urgent care. Average annual premiums for pet insurance are approximately $676 for dogs and $383 for cats, while an exam and treatment at an emergency vet may cost several thousand dollars.
How do claims affect your pet insurance premiums?
Your pet insurance premiums likely won’t increase when you submit claims to your insurer, but read the fine print in your policy to be certain. You can expect your premiums to increase as your pet ages.
What portion of vet bills does pet insurance cover?
Most pet insurance policies reimburse 70% to 90% of covered expenses after you've met your deductible. Some policies offer up to 100% reimbursement, but these typically come with higher premiums.
Summary
Pet insurance isn’t free—average annual premiums amount to a few hundred dollars—but it can help offset your veterinary costs. This is especially true if your pet is injured or becomes ill and needs emergency treatment and hospitalization, which could save you several thousand dollars. As with other insurance products, getting pet insurance quotes from different companies can help you find affordable coverage that meets your family’s needs.
