Pet insurance is designed to help manage the costs of unexpected veterinary care, including emergencies, surgeries, and ongoing treatments. Knowing whether it’s a worthwhile investment for you and your pet involves carefully weighing the costs against the benefits. This article explores how pet insurance works, what it covers, what it doesn’t, and alternative ways to manage veterinary expenses.
How Pet Insurance Works
Like car insurance, pet insurance considers factors like your pet’s age, breed, and your location to determine the premium.
Types of Pet Insurance Plans
There are various types of pet insurance plans available, typically categorized as:
- Accident-only: Covers injuries from accidents.
- Accident and Illness: Covers both accidents and illnesses, often considered the most comprehensive option.
- Wellness Plans: Focus on preventive care and routine checkups.
Comprehensive plans, often called “nose-to-tail” policies, are the most common and generally offer the widest coverage, though they also come with higher premiums. Accident-only and wellness plans are less expensive but cover fewer situations. You can also purchase add-ons for specific needs. When comparing plans, look for details on waiting periods and any limitations.
Premiums and Deductibles
Premiums are determined by your pet’s age and breed, where you live, and the level of coverage you choose. In 2023, dog owners with accident and illness plans paid an average of $675.61 annually ($56.30 per month), while cat owners paid $383.30 per year ($31.94 monthly). These prices are based on the plan’s deductibles (ranging from $250 to $1,000), the reimbursement percentage (typically 70% to 90%), and annual coverage limits (ranging from $2,500 to $10,000).
Treatment and Claims
Pet insurance can cover treatment costs, but there are a couple of important points to keep in mind. First, it’s wise to verify what is and isn’t covered before your pet receives care so you aren’t surprised later. Second, you usually have to pay the vet upfront and then file a claim. To file a claim, you’ll typically need an invoice or receipt and a form completed and signed by your vet. Some insurers offer apps or online portals for easy submission. Processing times vary, but can range from a few minutes to about 30 days.
If your insurer offers direct vet pay, it will pay the vet directly, leaving you with no out-of-pocket expenses besides your deductible and co-insurance.
Reimbursement
If your claim is approved, the insurer reimburses you for covered expenses. The reimbursement amount depends on your policy’s terms, including the reimbursement rate and deductible. For instance, if your policy covers 80% of costs and you have a $100 deductible, you would receive 80% of the vet bill after subtracting the deductible. Reimbursement typically comes via direct deposit or check.
What Pet Insurance Covers
Coverage varies by plan, but most policies cover a range of issues:
Accidents:
- Bite wounds
- Cuts and lacerations
- Fractures
- Injuries from car accidents
- Poisonings
Diagnostics:
- Blood tests
- Lab tests
- MRIs
- Ultrasounds
- X-rays
Illness:
- Allergies
- Cancer treatments
- Chronic conditions (such as diabetes or arthritis)
- Gastrointestinal issues
- Infections (such as ear infections or urinary tract infections)
Medications:
- Allergy medications
- Antibiotics
- Long-term medications for chronic conditions
- Pain relievers
- Prescription medications
Surgeries:
- Emergency surgeries (such as foreign object removal)
- Orthopedic surgeries (such as cruciate ligament repair)
- Soft tissue surgeries
- Tumor removals
It is always important to review the fine print of your policy to understand exactly what is and isn’t included. Many pet insurance companies allow for customizable coverage by offering add-ons.
What Pet Insurance Doesn’t Cover
Pet insurance policies typically have exclusions, including:
Behavior Treatments:
- Behavioral modification programs
- Training
Breed-Specific Conditions:
- Conditions common in specific breeds (e.g., hip dysplasia in large dogs)
- Hereditary conditions (unless covered by specific plans)
Experimental Treatments:
- New or alternative therapies not covered by the policy
- Treatments that are not widely accepted or proven
Elective Procedures:
- Cosmetic surgeries (e.g., ear cropping, tail docking)
- Declawing
- Non-essential cosmetic treatments
Pre-existing Conditions:
- Chronic illnesses diagnosed before policy initiation
- Conditions your pet had before the start of the policy
Routine Care:
- Annual wellness exams
- Dental cleanings
- Flea, tick, and heartworm prevention
- Spaying/neutering
- Vaccinations
Other Common Exclusions:
- Exotic pets and horses
- Newborn puppies
- Working animals
Add-on coverage can sometimes be purchased for some of these things. Some insurers offer policies that cover exotic pets, horses, working animals, breeding dogs, and newborn puppies, but these policies can be costly.
Cost of Vet Care With Insurance vs. Without Insurance
Pet ownership can carry significant expenses. For example, the annual cost for a dog or cat can reach $5,000, and not having insurance can drastically increase that amount when unexpected issues arise. Here’s a comparison of average costs for vet care with and without insurance.
Other Ways to Pay for Veterinary Costs
If you are considering alternative options:
- Pet Savings Account: Setting up a dedicated savings account can build a financial cushion for routine care and emergencies.
- Medical Credit Card: Some offer financing options like extended payment terms or no-interest periods, but be mindful of deferred interest terms.
- Car Insurance: Check if your policy offers coverage for pets injured in car accidents. Some companies provide up to $1,000 for vet bills.
- Employee Benefits: Many companies offer pet insurance or other discounts for pet products and services. Check with your HR.
- Pet Loans: Consider the pros and cons of a personal loan to ensure it is financially sound for your needs.
How to Decide if Pet Insurance Is Right for You
Your pet’s age, breed, and current health are key factors. The younger and healthier your pet, the more cost-effective insurance is, since you can avoid exclusions for pre-existing conditions and pay lower premiums. Older pets with existing health issues may be more expensive to cover, or not insurable at all.
For example, a quote from ASPCA Pet Insurance for a medium-sized, two-year-old puppy in Houston could be as low as $21 a month, while it starts at $70 for a 10-year-old dog. Breed matters, too, as some breeds are prone to specific conditions that insurance might not cover or could increase your premiums.
In conclusion, pet insurance can ease some of the financial strain of veterinary care. To decide whether to get it, compare quotes, ask about customizable options, consider an accident-only plan if you are on a budget, or contribute monthly to a pet savings account if your pet is relatively healthy. Regardless of your decision, assess your ability to cover vet bills out of pocket without insurance.
