5 Common Pet Insurance Myths — Debunked
Many pet owners find themselves facing unexpected vet bills. With the cost of medical care for our pets on the rise—increasing by 6.2% in 2024 alone—pet insurance provides a financial safety net. Yet, only about 4% of U.S. pet owners currently insure their pets. This low rate is often due to misunderstandings about how these policies work.
From concerns that pet insurance isn’t worth the cost, to worries that pre-existing conditions could limit coverage, many pet parents avoid exploring insurance options. These options could save them significant money, particularly as the average emergency vet visit ranges from $200 to several thousand dollars.
This guide will debunk common myths about pet insurance to help you make smarter choices for your playful kitten, energetic dog, or senior pet requiring extra care.
In this guide:
- Myth #1: Pet insurance isn’t worth the money
- Myth #2: Most vets don’t accept pet insurance
- Myth #3: You can’t get coverage for some breeds and exotic pets
- Myth #4: Insurance won’t cover pre-existing conditions
- Myth #5: Pet insurance covers all routine and preventive care
Myth #1: Pet insurance isn’t worth the money
When your furry friend is healthy, the monthly pet insurance premium might feel unnecessary. However, with rising veterinary costs, a single, unexpected incident could drain your emergency fund or max out your credit cards.
“Pet insurance is something you’ll be relieved to have if you ever need to use it,” says Dr. Kristen LaCroix, a veterinarian specializing in emergency care. “I’ve diagnosed six-month-old pets with lymphoma and performed countless surgeries on pets under three years old. Those $8,000 emergency surgeries don’t only happen to senior pets.”
LaCroix adds that accidents can happen to any pet, including “the one-year-old pup running around full of life.”
According to a recent MarketWatch survey, only 32% of pet parents can cover emergencies with their savings, while 43% would use credit cards or loans. Most vet clinics require upfront payment, which can be difficult during an emergency when cash isn’t readily available.
Here’s what you might pay for common pet medical conditions:
Source: Healthy Paws Pet Insurance.
Owners among the 125 million U.S. households with pets spent $38.3 billion on vet care in 2024, according to the American Pet Products Association.
Meanwhile, 87% of pet owners with insurance plans pay less than $70 monthly for their policies. Of those owners, 47% pay under $40 a month—or $480 a year—which is less than what you might spend on coffee or food delivery.
The real value of pet insurance extends beyond finances. When faced with a serious medical decision for your pet, you don’t want to be limited solely by what’s in your bank account.
Myth #2: Most vets don’t accept pet insurance
Pet insurance differs from human health insurance. You don’t need to find in-network providers or confirm whether a vet accepts your plan. Instead, most pet insurance companies use a reimbursement model, allowing you to visit any licensed vet or specialist.
For standard pet insurance reimbursement:
- You visit any vet, and your provider doesn’t need to interact with your pet insurer.
- You pay for services upfront using cash or credit.
- You submit your claims by uploading invoices and medical records through your insurer’s app or portal.
- You get reimbursed. Most companies pay 70% to 100% of covered costs within two to 14 days.
This system gives you the flexibility to choose any clinic, specialist, or emergency hospital.
However, this reimbursement model has its drawbacks. Clinics typically require upfront payment, with bills ranging from a few hundred to $5,000 or more for urgent care and surgeries. This process can be a barrier if you don’t have sufficient emergency savings. While traditional pet insurance reimburses you later, a growing number of providers offer same-day claims approvals. For example, Lemonade advertises rapid repayment in as little as 48 hours.
“Quick approval matters when an emergency happens at 2 a.m.,” says Dr. Kristen LaCroix, DVM, Emergency Relief Veterinarian. “For example, say a dog gets hit by a car, requiring $4,000 in immediate stabilizing care. Without fast-approval insurance, the owner would need to pay that full amount out of pocket and get reimbursed later. But not everyone has that sort of money in their bank account. With the right insurance policy, the owner only needs to cover certain fees while their insurance handles the rest. These situations can mean the difference between life-saving treatment and heartbreaking choices.”
It’s important to examine policy details for long-term needs. For example, some plans cap annual payouts at as little as $5,000, which may be insufficient for chronic illnesses like cancer.
That’s why you should look for a policy that offers:
- High limits. Choose unlimited annual coverage or at least $15,000 or more per year.
- No condition limits. Avoid policies that cap spending on specific health issues.
- Lifetime protection. Select coverage that continues year after year for ongoing conditions.
- Clear approval process. Look for insurers offering fast claims decisions, ideally within 24 to 48 hours.
Myth #3: You can’t find affordable coverage for certain breeds (or exotic pets)
It’s easy to assume insurance for certain breeds or exotic pets is unavailable or expensive. But that’s not entirely true.
While breed and species impact costs, coverage is more accessible than most owners realize. French bulldogs, which are America’s most popular dog breed, typically have higher premiums, but many insurers offer affordable coverage.
“I recommend insurance to all my patients. Don’t wait until you have a problem to get insurance—get your pets examined when they are healthy. Once something is in a medical record, typically that leads to an exclusion in coverage,” says Dr. Sarah Gorman, DVM, CCRP, Managing Veterinarian, Small Door Veterinary, New York.
While fewer insurers offer policies for exotic pets, it isn’t difficult to find one. The cost for these policies often runs lower than insurance for cats or dogs, with monthly policies typically costing $8 to $21, according to Nationwide.
Beyond dogs and cats, some pets you can typically insure include:
- Birds — including parrots, finches, and cockatiels
- Reptiles — like bearded dragons, geckos, and snakes
- Small mammals — rabbits, ferrets, and guinea pigs
- Some amphibians — certain frogs and salamanders
Keep in mind that exotic pet policies may cap annual benefits at lower amounts than dog or cat plans. You could find there are more coverage exclusions for species-specific issues.
Myth #4: My pet has pre-existing conditions, so no insurance will cover it
Even with pre-existing conditions, insurance can still help with future medical costs. While insurers won’t cover conditions before enrollment, your policy should protect against new illnesses and accidents.
Here’s how pre-existing conditions actually work:
- New, unrelated health issues get full coverage regardless of pre-existing conditions.
- Curable conditions like ear infections often become eligible for coverage after six to 12 months without symptoms.
- Chronic conditions like diabetes, diagnosed before enrollment, may be excluded from coverage.
If your dog had a skin infection last year, which cost $400 to treat, that specific condition might be excluded. However, your pet’s coverage would remain if they:
- Break a leg ($2,000+)
- Swallow a toy requiring surgery ($1,000+)
- Develop allergies ($500+)
- Need cancer treatment ($3,000+)
Certain breeds may face other limitations, such as German Shepherds with hip problems. French bulldogs might have breed-related breathing issues that are excluded.
What insurers consider when reviewing pre-existing conditions:
- Whether the condition is curable or chronic
- How long your pet has been symptom-free
- The connection between past and current issues
- Your pet’s complete medical history
“Don’t assume that the most expensive insurance is the best. This is a competitive, growing market, and sometimes the newer companies have more affordable rates,” says Dr. Bethany Hsia, DVM, CCOfounder, CodaPet, California.
Myth #5: Pet insurance covers all routine and preventive care
One of the most common misconceptions is that pet insurance automatically includes everything from routine checkups to emergencies. However, standard pet insurance policies typically focus on unexpected accidents and illnesses rather than preventive care, which wellness plans usually cover.
Standard pet insurance typically covers:
- Accidents and injuries
- Unexpected illnesses
- Emergency surgeries
- Diagnostic tests
- Medications for covered conditions
- Hospital stays
Standard wellness plans typically cover:
- Annual checkups
- Vaccinations
- Dental cleanings
- Flea and tick prevention
- Spaying and neutering
- Grooming
At a glance: Wellness plans vs. pet insurance
“Pet health insurance works differently from wellness plans,” explains Dr. Kristen LaCroix, DVM. “I’ve seen pet owners paying $200 monthly for wellness plans thinking they’re fully covered. Then their pet needs a $4,000 surgery, and they’re shocked to learn their plan doesn’t help.”
Some insurance providers offer wellness coverage as an optional add-on for an extra $10 to $30 a month. But most insurance policies don’t include wellness coverage by default.
If you want full-spectrum pet health care, consider pairing a pet insurance plan with a wellness add-on. For budget-conscious owners, prioritize accident and illness coverage first.
How to shop for pet insurance
When comparing pet insurance policies, focus first on coverage for accidents, illnesses, and emergency care, rather than routine checkups. Understand exactly what coverage you get before you need to use the plan.
Dr. Sarah Gorman recommends weighing these key factors when choosing your policy, especially if you have an older pet:
- Long-term care. Look for insurance policies that cover chronic conditions, ongoing medications, and geriatric care.
- Age restrictions. Ensure the policy doesn’t have age limits for enrollment or renewal.
- Coverage scope. Evaluate what’s covered by the insurance policy, including accidents, illnesses, surgeries, diagnostic tests, medications, and emergency care.
- Cost sharing. Look into the deductible amount, which is the portion you pay before insurance coverage kicks in, and the reimbursement percentage.
- Coverage limits. Understand exclusions or waiting periods. Maximum benefits can also vary by policy.
Compare at least three policies, carefully reading the fine print. Getting quotes from multiple providers helps you understand the full range of coverage and costs available.
FAQs: Insuring and protecting your pet
Here are key answers about pet insurance to help you make an informed decision.
Does pet insurance cover vaccines?
No, standard pet insurance won’t include routine vaccinations. However, some providers offer wellness care add-ons to cover preventive costs, usually for an extra $10 to $30 a month.
When should I get pet insurance?
The best time is when your pet is young and healthy—before any pre-existing conditions develop. Insurance agencies typically offer lower rates for younger pets.
Do I need pet insurance for an indoor cat?
Yes. Indoor cats can still develop costly illnesses like kidney disease, cancer, or dental problems impacting significant vet bills, making pet insurance worth considering.
Can you have two pets on the same insurance policy?
Most providers allow multiple pets on a single policy, often offering multi-pet discounts.
