Understanding Pet Insurance Costs
Pet insurance can help mitigate the financial burden of veterinary care for your furry friends. But how much does it cost? The average annual cost of dog insurance is $749, or about $62 per month, while cat insurance averages $386 per year, or around $32 monthly. These costs vary based on several factors including the pet’s age, breed, location, and the type of coverage chosen.
Factors Influencing Pet Insurance Costs
- Location: Veterinary care costs vary by region, affecting insurance premiums. For instance, insuring a 2-year-old mixed-breed dog can cost as low as $23 monthly in Jacksonville or as high as $63 in New York City.
- Breed: Certain breeds are prone to specific health issues, increasing insurance costs. For example, French Bulldogs are more likely to have breathing problems and skin fold inflammation, making their insurance more expensive.
- Age: Older pets are more likely to develop health issues, so their insurance costs more. For a mixed-breed dog, monthly rates can jump from $35 at age 2 to $122 at age 8 with some insurers.
- Type of Coverage: Accident and illness coverage is more comprehensive and thus more expensive than accident-only policies. Wellness coverage can be added for routine care.
How Pet Insurance Works
- Reimbursement Model: Most pet insurance plans require you to pay vet bills upfront and then file for reimbursement.
- Coverage Percentage: Policies typically cover 70% to 90% of costs after the deductible.
- Deductibles and Limits: Deductibles can range from $0 to $1,000 or more, and annual coverage limits vary.
Tips for Lowering Pet Insurance Costs
- Customize Your Plan: Higher deductibles or lower reimbursement percentages can reduce premiums.
- Check for Discounts: Some insurers offer discounts for multi-pet households, military service, or annual payments.
- Shop Around: Compare quotes from multiple insurers to find the best value.
- Consider Your Pet’s Needs: Older pets or those with health issues may require more comprehensive coverage.
The Importance of Comparing Plans
When comparing pet insurance plans, consider not just the premium but also what’s covered, waiting periods, and payout limits. Some plans may offer better value despite higher premiums due to more comprehensive coverage.
Sarah Schlichter, a lead writer on insurance at NerdWallet, emphasizes the importance of shopping around for pet insurance due to the inability of insurers to cover pre-existing conditions once you switch providers.
