Approximately 60 million American households have pets, according to the U.S. Census Bureau. As pet ownership has increased, so has the cost of caring for animal companions.
The Rising Cost of Pet Care
Pet expenditures totaled $57.8 billion in 2013. The Bureau of Labor Statistics indicates that these costs increased by nearly 80% over the past eight years, reaching $102.8 billion in 2021. With a significant portion of this spending going towards veterinary bills, many pet owners find themselves facing considerable financial burdens.
Routine veterinary care averages $225 for dogs and $160 for cats, according to the ASPCA, and these figures don’t include preventative medications. Expenses escalate significantly in the event of illness or injury, with more than 40% of pet owners reportedly having been unable to seek necessary care due to the associated costs. For families looking for ways to manage vet bills, pet insurance can be a worthwhile investment.
Policies are becoming more popular and accessible in both the dog and cat insurance markets, with the plans reimbursing pet owners for a portion or the entirety of their animal’s care. However, there are different coverage options available, including:
- Accident-only, which had an average annual premium of $122.19 for cats and $200.58 for dogs in 2022, as reported by the North American Pet Health Insurance Association.
- Accident and illness policies, with annual average premiums of $387.01 for cats and $640.04 for dogs.
- Comprehensive plans including wellness coverage, priced at an average of $613.67 for cats and $1,134.29 for dogs annually.
If you’re interested in obtaining pet insurance, these expert tips can help you find the most affordable coverage that provides the right protection for your pet.
Tips for Finding Budget-Friendly Pet Insurance
Buy Coverage as Soon as Possible
Timing is critical to securing the most affordable pet insurance. “Obtain the insurance as early as possible before your pet has any conditions that might be considered pre-existing,” advises Dr. Ali Mason, regional director of operations at DVM and Thrive Pet Healthcare. Dr. Matthew McCarthy, a veterinarian at Juniper Valley Animal Hospital, also cautions that if any medical issues exist, your pet might be considered to have a pre-existing condition. This could make it impossible to get coverage for that health issue and drastically increase the cost of any policy.
Buying a policy early also provides other benefits. “Younger dogs will have lower premiums,” says Dr. Sandi Norman, DVM and part-time General Practice Director at Noah’s Animal Hospitals. “Rates go up as your pet ages.”
If you are considering getting a pet, you can also research insurance costs before choosing your new companion. “Certain breeds have higher rates because they inherently have more health issues such as brachycephalic breeds, like bulldogs, or boxers,” Dr. Norman advises. Choosing one of the cheapest dog breeds to insure or cheapest cat breeds to insure won’t just help you reduce insurance premiums, but can also help you find a companion that’s less likely to have expensive medical issues.
Consider an Accident-Only Policy
Not all pet insurance policies are the same, and one way to overpay is to buy the wrong type of coverage. “Pet owners should ask themselves what they need a pet insurance policy to cover,” says Dr. Wendy Hauser, DVM and special advisor at ASPCA Pet Health Insurance.
Dr. Hauser explains that all-inclusive policies cover preventative or routine care, as well as accidents and illnesses, but they tend to be more expensive. Paying extra for a policy that covers routine services may not be the right choice for all families. “When looking for affordable insurance coverage, I recommend pet owners focus on emergency and illness coverage,” Dr. Mason says. Accident and illness policies won’t cover things like yearly wellness checkups or vaccines — but they’ll help cover major and unexpected expenses.
Dr. Norman points out that accident and illness policies are popular because they provide a good balance between protection and affordability. “Many pet owners chose to have coverage just for emergencies and surgeries while paying for routine wellness on their own. That will make their premium less than a full coverage policy,” she said. If an accident and illness policy still costs too much, there’s another option.
“If the monthly premium for a comprehensive policy is out of reach, pet owners can consider accident-only plans,” Dr. Hauser says. Accident-only policies cover things like poisonings, foreign body ingestion, lacerations, broken teeth, attacks by other animals, and getting hit by cars. “They’re often highly cost-effective for pet owners and help to cover the most unexpected and unpredictable health needs of pets.”
Consider a High-Deductible Policy
When shopping, the deductible is another factor influencing premiums. “Pet Insurance always has a deductible, which you will be responsible for out of pocket,” Dr. Norman explains. Deductibles can be per incident or per year, and the higher it is, the lower your premiums will be.
“Talk to the insurance companies about raising deductibles for a lower monthly payment to avoid breaking the bank each month.” Dr. Mason says. Make sure you can afford the deductible, because you’ll have to pay it when you make a claim.
Find Out How Premiums Can Change From Year to Year
You want insurance to be affordable now and remain affordable long term. Dr. Mason says it’s best to stick with your coverage once you sign up since pre-existing conditions won’t be covered when switching plans. She says it is important to inquire about annual premium changes and the factors that determine them.
Dr. McCarthy warns that some pet insurers have increased premiums well above the inflation rate. Make certain you can trust your insurer, so always ask about their policies for premium increases.
Shop Around for Coverage
The last key step is to meticulously shop around to find the right coverage. “There are a lot of choices for pet insurance available,” Dr. Hauser says. She suggests reviewing sample policies to understand exclusions and coverages, including:
- Care reimbursement percentage
- Deductible levels
- Waiting periods
- Annual and per-incident maximums
Reading customer reviews can assist you in selecting the right company.
The Bottom Line
Pet insurance can make the difference between affording your animal’s care or not, so research your options carefully. There are budget-friendly solutions, which can potentially safeguard your pet’s, and your, financial well-being.
