Is Pet Insurance Worth It?
The pet insurance industry is growing rapidly, with nearly 6.25 million pets insured in North America at the end of 2023, representing a 16.7% increase from the previous year. Pet health care can be expensive, making it crucial to consider protecting your finances in case your pet has a costly emergency or accident. However, understanding the limitations of pet insurance is key to determining its value.
What is Pet Insurance?
Pet insurance is designed to help manage the cost of veterinary care for pets. It covers a portion of veterinary services incurred from illness, injury, unexpected surgery, and sometimes routine care. Multiple pet insurance companies offer different levels of coverage, similar to human health insurance.
“Pet insurance can be a smart investment for pet owners in several situations but might not be beneficial for everyone,” said Chris Hagesfeld, director of customer satisfaction at Embrace Pet Insurance. It’s particularly beneficial for owners of breeds known to have hereditary conditions or prone to specific health issues.
What Does Pet Insurance Cover?
Coverage varies depending on the insurance company and the specific plan chosen. Pet insurance typically covers costs related to unexpected illnesses or injuries, including diagnostic tests, surgeries, hospitalization, and medications. Some plans also offer coverage for wellness care like vaccinations and routine checkups, but this usually comes at an additional cost.
Most pet insurance companies have an annual deductible. After meeting the deductible, insurance covers a certain percentage of the overall vet bill — typically 70%, 80%, or 90%, depending on the package or plan chosen.
When is Pet Insurance Worth It?
Pet insurance can be worth it if your pet gets sick or injured, helping to offset the financial burden of unexpected veterinary bills. Even though average pet insurance premiums range between $10 to $50 per month, coverage can become more expensive over your pet’s lifetime.
“Enrolling a pet while they are young and healthy is important, especially if you have a breed predisposed to chronic conditions, as it can lead to lower premiums and ensure coverage before preexisting conditions are diagnosed,” said Hagesfeld.
Many pet owners find insurance to be a necessary safety net that protects them financially should a worst-case scenario arise. A case in point is Paul from Illinois, whose 4-year-old bichon frisé required surgery costing $6,100. His pet insurance covered the bill, and when the dog relapsed, insurance covered the costs again.
When is Pet Insurance Not Worth It?
If your pet has preexisting conditions, pet insurance is not a good option as it won’t cover these. You also can’t sign up for pet insurance when you find out your pet has an illness or needs a procedure. Some providers exclude coverage for hereditary conditions like hip dysplasia. Additionally, pet insurance may not be worth it for older animals due to higher premiums and potential lack of coverage for age-related health issues.
Alternatives to Pet Insurance
If you decide pet insurance isn’t worth the monthly premium, you can still prepare for potential veterinary expenses in other ways:
- Create a dedicated savings account for your pet’s health care costs.
- Explore wellness plans offered by some veterinary clinics.
- Consider special financing options for veterinary care expenses.
Conclusion
Pet insurance can be worth it if you have an eligible pet and want to safeguard against high veterinary costs associated with unexpected illnesses or injuries. Consider your financial comfort zone and your pet’s breed, age, and health risks when making your decision.
