Navigating the World of Pet Insurance: Expert Advice for Affordability
Approximately 60 million American households are home to pets, according to the U.S. Census Bureau. As any pet owner knows, these furry companions can bring significant joy, but also significant expenses. Pet-related costs have been on the rise; the Bureau of Labor Statistics reports a 77.9% increase in pet expenditures between 2013 and 2021.
One of the most significant costs for pet owners is veterinary care. Routine checkups can average $225 for dogs and $160 for cats, not including preventative medications, according to the ASPCA. When unexpected illnesses or injuries occur, those costs can quickly escalate beyond what many families can afford. In fact, over 40% of pet owners have reported costs preventing them from getting care.
For families seeking to manage these veterinary expenses, pet insurance can be a valuable investment. Policies for both dogs and cats are becoming increasingly popular and accessible, with options that reimburse owners for a portion or all of the cost of their animal’s care. However, not all policies are created equal. This article provides expert tips to ensure you find the most affordable coverage that meets your pet’s needs.
Key Policy Options
Three primary types of pet insurance policies are available:
- Accident-only: These policies, which covered accidents, averaged $122.19 annually for cats and $200.58 for dogs in 2022.
- Accident and illness: With premiums averaging $387.01 for cats and $640.04 for dogs, these policies extend coverage beyond accidents.
- Comprehensive plans with wellness coverage: These plans, which include preventative care, commanded the highest premiums, averaging $613.67 for cats and $1,134.29 for dogs annually.
If the goal is to secure the most affordable coverage, here’s how to proceed:
Buy Coverage as Early as Possible
Time is a critical factor when it comes to affordable pet insurance. Dr. Ali Mason, regional director of operations at DVM and Thrive Pet Healthcare, advises that: “Obtain the insurance as early as possible before your pet has any conditions that might be considered pre-existing.”
Any existing medical issues can be considered pre-existing conditions, potentially excluding coverage for those conditions and increasing the cost of any policy. Buying a policy earlier also has financial benefits down the line. Dr. Sandi Norman, DVM and part-time General Practice Director at Noah’s Animal Hospitals, notes that: “Younger dogs will have lower premiums. Rates go up as your pet ages.”
For those who are still selecting a pet, Dr. Norman suggests considering insurance costs during the decision-making process, as certain breeds may be prone to higher rates due to health issues.
Consider Accident-Only Policies
Understanding what you need your pet insurance to cover can help to avoid overspending. Dr. Wendy Hauser, DVM and special advisor at ASPCA Pet Health Insurance, explains how all-inclusive policies which cover preventative care as well as accidents and illnesses tend to be more expensive.
If affordability is a primary concern, focusing on emergency and illness coverage is better, according to Dr. Mason. While these policies do not cover routine services like vaccinations and exams, they will cover unexpected expenses, and are best suited for financial preparedness.
“It’s always best to save for routine visits and have insurance ready for unexpected emergencies or illnesses,” says Dr. Mason.
If an accident and illness policy isn’t financially realistic, accident-only plans are another viable option. Dr. Hauser points out that these plans can cover poisonings, foreign body ingestion, lacerations, etc. She describes these policies as: “often highly cost-effective for pet owners and help to cover the most unexpected and unpredictable health need of pets.”
Consider a High-Deductible Policy
When comparing policies, the deductible is another key factor impacting your premium. Dr. Norman explains that deductibles can be per incident or per year, and a higher deductible typically correlates with lower premiums – though you must be able to afford this out-of-pocket expense when claims are made.
Dr. Mason recommends talking to multiple insurance companies about increasing deductibles to lower the monthly payment.
Find Out How Premiums Can Change Year to Year
Pet insurance costs don’t just have to be affordable at the beginning, they often need longevity to provide support over time. Dr. Mason highlights this key aspect: “You don’t want to bounce around to different plans throughout your pet’s life since pre-existing conditions will not be covered when the plan is switched.”
She suggests asking insurance companies about potential premium increases and the factors that drive those decisions. Dr. Matthew McCarthy, a veterinarian and the founder and owner of Juniper Valley Animal Hospital, also warns that some companies have raised rates far above the typical rate of inflation.
Shop Around for Coverage
Finally, the last key step – and the most important – is to shop around carefully to find the right coverage. Dr. Hauser advises spending time on provider websites to investigate policy options and to review factors such as: what percent of care the policy reimburses, the deductible, how long the waiting periods are, as well as the annual and per-incident maximums. Reading customer reviews can also help you find the right company for your needs.
Buying the right pet insurance policy from a trusted company may help to save your pet someday.
