Pet Insurance: Is It Worth the Investment?
Owning a pet is a rewarding experience filled with companionship and love, but it also comes with financial responsibilities. From routine check-ups to unexpected emergencies, veterinary care can quickly become expensive. To explore pet owners’ attitudes toward pet insurance, Experian recently surveyed over 1,200 U.S. consumers, uncovering valuable insights into the perceived benefits and costs.
Key Survey Findings
The survey revealed that while the cost of pet insurance might deter some, those who have it overwhelmingly believe it’s a worthwhile investment.
- Prevalence: Only 29% of pet owners surveyed currently have pet insurance.
- Value Perception: Among those with pet insurance, a staggering 92% reported that their coverage is worth the expense.
- Cost Considerations: The annual cost of pet insurance averages $383.30 for cats and $675.61 for dogs, according to the North American Pet Health Insurance Association, with wellness coverage potentially doubling these expenses.
- Willingness to Pay: Even among those without insurance, 53% believe it’s worth the cost, suggesting that price is a significant barrier to adoption.
“I have pet insurance so I don’t have to decide between taking care of [my pets and] paying my mortgage.” – Survey Respondent
Types of Pet Insurance
Pet insurance typically offers different levels of coverage, each tailored to various needs and budgets.
- Accident-Only Insurance: This type covers injuries and accidents, such as being hit by a car or ingesting something toxic. However, it typically excludes pre-existing conditions and preventive care.
- Accident and Illness Insurance: Offering more comprehensive protection, this option adds coverage for illnesses like cancer, diabetes, and infections. However, it, too, doesn’t cover pre-existing conditions or wellness care.
- Wellness Coverage: Often available as an add-on, wellness plans cover routine vet visits and preventive care, such as dental cleanings, annual exams, and vaccinations.
It’s crucial to carefully review the specifics of each plan, as coverage details vary widely among providers.
Impact on Veterinary Visits
Pet owners with insurance tend to visit the vet more frequently.
- Increased Vet Visits: Half of insured pet owners reported visiting the vet more than once a year, compared to only 20% of those without insurance.
- Early Detection: More frequent visits can lead to earlier detection and treatment of potential health problems.
- Preventive Care: Routine preventive care can also help keep pets healthy and potentially reduce long-term veterinary costs.
Financial Confidence and Spending Habits
The survey highlights a correlation between financial confidence and pet insurance ownership.
- Higher Spending: Insured pet owners tend to spend more on their pets, with 55% spending $100 or more monthly, compared to 24% of those without insurance.
- Financial Confidence: 41% of pet owners with high financial confidence have pet insurance, compared to only 12% of those with low confidence.
The Bottom Line
While pet insurance involves costs, the overwhelming majority of those who have it believe it’s a valuable investment. By comparing plans, choosing coverage carefully, and selecting a higher deductible, pet owners can manage the cost. If insurance isn’t the right choice, a robust emergency fund, good credit health, and low credit utilization can also help manage unexpected vet bills.
Methodology
Experian surveyed 1,279 U.S. adult consumers between July 3, 2024, to gather these opinions. The sample was collected using a third-party company outside of Experian’s consumer credit database.
