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As a pet owner, you’ve likely heard about or even considered pet insurance. However, you may be wondering, “Is pet insurance worth it?”
Pet health insurance is a policy that covers the costs of diagnosing and treating unexpected injuries, illnesses or health conditions your pet may experience. Enrolling in a policy can bring you peace of mind that your pet will receive necessary care without straining your finances.
We at the Guides Home Team have surveyed pet owners, interviewed experts in the veterinary field and compared top pet insurance providers to help you decide if pet insurance is worth it for you and your loyal companion.
Pet insurance covers the costs of treating health issues that your pet may experience, such as accidents, illnesses and other health conditions. Unlike human medical insurance, pet insurance providers reimburse vet bills after you’ve already paid. Following a vet visit, you submit a claim to your provider. If approved, your provider will reimburse you for some or all of the bill, depending on the reimbursement rate you selected during enrollment.
You’ll need to pay a monthly premium to maintain coverage, as well as a deductible each year before receiving reimbursements for your claims. Additionally, most plans have a waiting period, or a set amount of time policyholders must wait before coverage officially starts. (Any condition that arises during the waiting period will not be covered).
There are two primary types of pet insurance plans: accident-only and accident-and-illness.
Accident-only policies cover your pet’s injuries, such as broken bones, lacerations and animal bites. This is the most affordable and basic type of coverage. However, it doesn’t cover any illnesses or health conditions your pet might face.
Accident-and-illness policies cover everything in the accident-only policy plus unexpected diseases and medical conditions, such as cancer, allergies, and hereditary and chronic conditions. This is the most popular type of coverage, as it’s more comprehensive.
Aside from Wagmo, no providers offer a stand-alone wellness plan to cover routine care such as blood work, vaccinations and flea/tick/heartworm prevention. Several providers offer it as an add-on to your base insurance policy for an extra monthly fee.
There are a few terms to familiarize yourself with before purchasing a pet insurance policy, as they directly impact your costs and payouts: deductibles, coverage limits and reimbursement rates.
As you’re weighing your pet insurance options, you should determine which providers cover the care your furry friend needs.
Below are the conditions and procedures most commonly covered by an accident-and-illness policy:
Wellness add-on packages typically cover the following services:
Policies vary across providers, so read the fine print and ensure you’re getting coverage for what’s most important to you and your pet.
Every pet insurance policy has exclusions. No company covers preexisting conditions, which are defined as any illness or injury your pet had before you enrolled in coverage or that occurred during the waiting period.
A few pet insurance companies will differentiate between a curable condition, such as vomiting or an ear infection, from an incurable condition, such as diabetes or arthritis. Providers such as Spot and Embrace will cover a curable preexisting condition in the future if your pet doesn’t show symptoms or receive treatment for a set amount of time.
Other common exclusions from a pet insurance policy include the following:
If your pet has a curable preexisting condition, focus on the pet insurance providers that will make exceptions in these circumstances.
According to a survey from the American Pet Products Association (APPA), pet owners spent roughly $34.3 billion on veterinary care in 2021. Determining much you could potentially spend on medical bills without insurance is an important step in deciding if pet insurance is worth it.
In 2019, Healthy Paws analyzed its claims data to determine the most common conditions pet owners submitted claims for and how much these conditions would cost to treat without pet insurance.
The most common conditions among both cats and dogs were gastrointestinal issues (caused by food allergies, inflammation or toxic ingestions). Medical treatment for these conditions without accident-and-illness coverage can cost $29,000 or more. When you compare that number to the cost of a pet insurance policy (anywhere from $120 to $1,200 annually), pet insurance can save you a lot of money.
When your pet is young, it will need to go to the vet more frequently to receive its first round of vaccinations, spay/neuter surgery, parasite prevention and microchipping. After that, your pet will likely only need to see the vet once or twice per year for checkups and vaccine boosters. Still, these routine care visits can add up throughout your pet’s life.
We compiled data from multiple pet care sources (including the American Kennel Club, ASPCA and Pet Care Rx) and determined the following cost ranges for the most common routine care vet visits.
Now that you’ve seen potential costs for unexpected illnesses and conditions, let’s dig into potential monthly pet insurance premium costs.
According to the North American Pet Health Insurance Association (NAPHIA), dog owners paid an average of $48.66 per month for an accident-and-illness plan and $19.93 for an accident-only plan in 2021. Cat owners paid an average of $28.57 per month for an accident-and-illness plan and $10.85 for an accident-only plan. Based on more than 1,000 sample quotes we received and analyzed, we found that the average cost of dog insurance is $30 to $50 per month, while the average cost of cat insurance is $10 to $30 per month.
Remember that pet insurance rates can vary based on the following factors:
Below, we’ve compiled average pet insurance premium costs for dogs and cats of various ages from the best pet insurance companies in the industry.
*Monthly premiums are based on sample quotes we received for a medium-sized, mixed-breed dog in Salt Lake City, Utah.
**Lemonade does not insure pets more than 14 years old and is thus not recommended for senior pets.
*Monthly premiums are based on sample quotes we pulled based on a mixed-breed cat in Pittsburgh, Penn.
**Lemonade does not insure pets more than 14 years old and is thus not recommended for senior pets.
We consulted our panel of licensed veterinarians to get their expert opinion on pet insurance and whether they would recommend it to their clients. Here’s what they had to say:
Pet insurance was developed to prevent pet owners from paying exorbitant medical bills to get their pets necessary care or making the difficult decision to say goodbye. With a pet insurance policy, those are consequences you’ll never have to face.
When deciding if pet insurance is worth it, consider your financial ability to pay large vet bills, whether it’s a one-time vet visit to treat an infection or ongoing care for a chronic condition such as cancer. Also, consider your pet’s age. The younger you enroll your pet, the more likely it is that future health issues will be covered and won’t be considered preexisting conditions.
We at the Guides Home team have a breadth of resources to assist you in selecting a pet insurance provider if you believe it’s the right choice for you and your pet. We’ve reviewed dozens of pet insurance companies and can recommend several we feel are the best providers in the pet insurance industry.
How much you should spend on pet insurance for a dog depends on a variety of factors, including your location and your pet’s age, breed and specific health concerns. However, we found that the average cost to insure a dog is $30 to $50 per month.
It’s best to get insurance for your pet as early as possible. No pet insurance provider covers preexisting conditions, so investing in pet insurance early will ensure costs are covered if and when your pet gets sick or injured.
The average cost of pet insurance per month is $30 to $50 for dogs and $10 to $30 for cats.
How much pet insurance pays depends on your provider and policy. In most cases, you’ll need to meet a deductible each year (usually between $100 and $1,000) before you’ll begin to receive reimbursement. The amount you’re reimbursed also depends on the reimbursement rate you selected during enrollment. Most companies will reimburse between 50% and 100% of each bill. Additionally, you’ll only be reimbursed for services that are covered under your policy. This may include accidents, illnesses and/or routine preventive care depending on your selected plan.
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