Pet Insurance 101
Is It Worth Your Investment?
Taking care of a pet is not only a commitment of time, but also your pocketbook. One of the biggest expenses a pet owner may be faced with is the cost of regular veterinary care, and if by chance your pet gets injured or ill, the emergency or specialist vet is an even larger expense that can cause significant concern to any pet owner.
As doggy parents, we want the absolute best for our pups and want to make sure that they are always healthy and receiving the care they need. However, this can be difficult when the price of veterinary care is so high, and continues to rise with inflation. This article aims to help you learn about pet insurance plans that are available, and to steer you in the direction of whether or not it could be worth the monthly investment for you and your pup.
So Many Plans… How Do You Choose?
One of the biggest problems that may inhibit many pet owners from signing their pets up with insurance is the sheer multitude of different plans there are to choose from. Sometimes it can be tricky to decipher which plan covers what, and leaves us unwilling to sign up. However, once the out-of-pocket veterinary bill comes, it leaves us all wondering if we should have just picked any insurance plan available. Read below for guidance on the benefits and limitations of different pet insurance plans.
Pros and Cons of the Average Pet Insurance Plan
Cons:
Pet insurance usually works on a reimbursement model, which means you still need to pay the vet bill upfront.
Pet insurance doesn't always cover preventive care (such as vaccines or spaying/neutering), nor does it cover treatment costs related to pre-existing conditions.
It can be tricky to navigate and choose a plan that’s right for your pet. Some people may waste money on a plan that doesn't cover their pet's breed-specific health risks.
Pros:
Pet insurance can reimburse on average anywhere between 70% and 100% of unexpected veterinary costs depending on your policy (once your deductible is met).
Most pet insurance plans can be used at any licensed veterinary practice.
Knowing that you'll be reimbursed for covered costs grants the peace of mind to say "yes" to the care your pet needs.
Can assist in the cost of regular care such as yearly wellness exams, vaccines, and even dental procedures
What To Look For in a Plan
When researching various plans, it’s important to keep in mind what’s most important to you in regards to your dog’s health. For example, different levels of care are required for various breeds, age ranges, lifestyles, activity levels, and special circumstances. You may be simply wanting to help cover regular exams and vaccines, or you could be preparing for an emergency in which the veterinary bills tend to be extremely expensive.
Price analysis
On average, the typical insurance plan for dogs cost around $55 a month; however, this also depends on a few variables that could influence this price to be higher or lower. It is simple to request quotes from different insurance providers; cross analyze different plans and their offerings before choosing. Some of the general variables that influence your monthly payment include:
The price of veterinary care in your area
Whether or not you want to include a wellness plan (a plan that helps to cover regular exams/vaccines/preventative care)
The age and breed of your pet
How you customize your policy to suit your financial needs (monthly rates, total yearly coverage desired, deductible amount)
Some of the variables having to do with your specific pet that could influence your monthly payment amount:
The Age of Your Pet: The older your pet is, the more likely they will experience accidents or illnesses. As your dog ages into their senior years, end of life insurance coverage may be a worthwhile added investment to your plan.
The Breed: Certain breeds are more prone to certain illnesses and accidents, which can cause your monthly payment to be higher. For example, French Bulldogs are notorious for needing respiratory care and many times have skeletal issues that may need treatment.
Pre-existing Conditions: If at the time of signing up for a policy, your pet has already struggled with or has been treated for a certain illness or injury (for example, asthma), you must make sure that the plan you choose will still cover these conditions. If your plan covers your pet’s pre-existing condition it is likely your monthly investment, as well as your annual limit, will be higher.
Wellness Plans: Not all policies include preventative and general well-being care. However, many insurance providers offer “Wellness Plan” add-ons. For an extra monthly fee, you can get wellness exams, vaccines, preventative care, and even dental care covered.
Coverage
Every plan covers different needs, and most plans are customizable so you can pick and choose what is most important to you and your pup.
Some Plans Cover:
Alternative treatments like physical therapy, acupuncture, and chiropractic care
Behavioral modification therapy
Cancellation Fees
Lost pet advertising and reward
Breeding and pregnancy expenses
End-of-life care, euthanasia , and cremation or burial
Wellness Packages (preventive & routine care such as vaccines, exams, and spay/neuter)
Most Plans Cover:
Accidental injuries (foreign object ingestion, broken bones, bite wounds, and more)
Unexpected illnesses (skin allergies, gastrointestinal issues, glaucoma, and more)
Chronic disease (diabetes, arthritis, heart conditions, and more)
Dental illnesses (periodontal disease, gingivitis, tooth resorption, and more)
Hereditary conditions (i.e. hip dysplasia, hyperthyroidism, von Willebrand disease, and more)
Surgery (bloat, cruciate ligament conditions, cataracts, and more)
Cancer diagnosis and treatment
Prescription medications
Diagnostic testing (i.e. fecal exams, allergy tests, x-rays, bloodwork, MRIs, and more)
Emergency exam fees
insurance terminology
Annual Limit: The annual limit is the maximum amount you can be reimbursed during your policy period (usually 12 months). This resets at the start of each year as you renew your insurance policy.
Annual limits are typically highly customizable to cater to your budget, as well as to your prospected veterinary spending for the year. You can find plans with an annual limit as low as $2,000 to as high as $20,000; it is all dependent on the insurance company, your budget, and your pet’s needs.
Subsequently, the higher your annual limit is, the higher your monthly payment will be. If you are expecting your dog to need a higher/more frequent level of care (for example, for a senior dog or a dog with an illness or prone to injury) then the extra monthly investment may be worth it in the long run.
If your pup is young, overall very healthy, and at low risk for injury or illness, a high annual limit may not be necessary. Reminder: you can re-customize your policy at the start of your new policy year as your dog’s needs change with time.
Deductible: Your deductible is the amount of money you must spend out of pocket before you can start receiving reimbursement from your insurance policy.
Pet insurance works similarly to property insurance in which you are reimbursed after paying out of pocket, rather than health insurance in which payments are altered at the time of appointment/payment. Like the annual limit, your deductible resets at the start of every policy year.
Likewise, your deductible is customizable dependent upon the insurance company, your budget, and your dog’s needs. Some deductibles are as low as $100 while others are thousands of dollars.
Reimbursement Percentage: The policy’s reimbursement percentage is the amount of money you will receive back from your insurance company after you have met your deductible, paid out of pocket for care, and submitted a claim and payment documentation to your insurance provider.
This percentage varies dependent on your plan and the company you’re insured through; reimbursement is typically anywhere between 50%-90%.
Waiting Period: Some insurance policies require a waiting period in which at the beginning of your policy, you must wait a certain amount of time before receiving coverage for accidents, injuries, and certain illnesses.
If you are concerned about receiving coverage for an ailment within a certain timeframe, make sure to carefully read your policy’s terms and conditions to find out what conditions have waiting times, and how long they are. This is something important to consider and compare when researching different plans.
Trustworthy Pet Insurance Providers
Spot: Voted the number one, best overall, Pet Insurance Provider in 2024 (so far), Spot’s policies are some of the most utilized and top rated among the many insurance providers. Some of the things that make this insurance provider so highly recommended are:
Up to 90% Reimbursement Rates
Multi-pet Discount
24/7 Vet Helpline
Covers Visits from any US Licensed Veterinarian or Specialist
30 Day Money Back Guarantee
Healthy Paws: An up and coming, but trusted and reliable, insurance provider that insures over 625,000 pets in the United States. Some perks of this provider:
No Maximum Annual or Lifetime Payouts
No Enrollment or Administration Fees
Fast Processing Time: Usually Within 2 Days
ASPCA Pet Insurance: One of the longest standing and trustworthy insurance providers is through the ASPCA. Some of their benefits include:
Get Cash Back on Most Vet Bills (eligible to your specific plan)
Covers Accidents, Illnesses, and Behavioral Issues
Covers Many Alternative Therapies
Visit any Licensed Vet in US or Canada
Lemonade: Another highly rated insurance company that is trusted in many different insurance factors (home, renters, property), but has quickly made its way as one of the top-rated Pet Insurance providers. Some of their most liked qualities are:
Savings on Vaccines, Exams, and Routine Care
Works with any Licensed US Vet
Digital Claims Process is Fast and Simple
Multiple Pet Discounts
MetLife: A known and long-time trusted insurance provider that has more recently begun to provide pet insurance that is on par with the quality of insurance in other factors. Named and awarded as the number one pet insurance provider of 2023, and continues to be top rated through 2024. Some of their highlights include:
No Lifetime or Per Incident Limits
Most Claims Processed in 5 Days or Less
One of the Shortest Waiting Periods for Accident & Illness Coverage
links embedded below
Conclusion
To wrap things up, pet insurance policies are highly variable dependent on your pups breed, age, needs and general health, your area, your budget, your prospective utilization, among many other things. It’s important to remember that pet insurance policies are not a “one-size-fits-all” circumstance, and you should always tailor you plan to what you and your pup specifically need in the long run.
If you are someone that is struggling to get your pet the regular care they need because of out-of-pocket costs, it may be worthwhile to make a smaller monthly investment of an insurance policy in order to be reimbursed for future vet visits. It may give you the confidence and peace of mind you need to keep on top of your pets health and possibly prevent future illness or injury. When going into research for policies, keep in mind what is most important to you in a plan; short wait periods for care, maximum coverage/reimbursement, low monthly rate, preventative and wellbeing plans, dental benefits, etc.
Overall, you know your pet best; do your own research and let this article help you make an informed decision.
Written By: Jessica L Hays- Dog Walker & Social Media Associate
References
Consumers Advocate. “10 Best Animal Insurance of 2024.” ConsumersAdvocate.Org, 10 Apr. 2017, www.consumersadvocate.org/pet-insurance/lp/animal-insurance?pd=true&keyword=animal+insurance&gca_campaignid=19676071674&gca_adgroupid=161361792880&gca_matchtype=b&gca_network=g&gca_device=c&gca_adposition=&gca_loc_interest_ms=&gca_loc_physical_ms=9060360&gca_creative=690914149366&gad_source=1&gclid=CjwKCAjwnei0BhB-EiwAA2xuBs-fUh3jGj3gwqtOxmMnvIca_3LnDD-YfyPfz9yp5WCwegYqQJab1BoC9gcQAvD_BwE.
Hauser, Wendy. “Pet Insurance Buyer’s Guide: ASPCA® Pet Health Insurance.” ASPCA Pet Health Insurance, ASPCA Pet Insurance, 25 Jan. 2018, www.aspcapetinsurance.com/resources/pet-insurance-buyers-guide/.
Steere, Kari, et al. “Is Pet Insurance Worth It? 2024 Experts Answer.” Pawlicy Advisor, 2 Mar. 2020, www.pawlicy.com/blog/is-pet-insurance-worth-it/.
