Is Pet Insurance Worth It?

In some ways, pet insurance plans are not unlike human health insurance, with annual deductibles, co-pays, reimbursement levels, exclusions and more. And, like coverage for pets’ parents, pet insurance covers many health problems and procedures.

Read on to learn more about the ins, outs and costs of buying a policy.

Table of contents

• What does pet insurance cover?
• When should you consider getting pet insurance?
• How much is pet insurance?
• What are the best pet insurance companies?
• Is buying pet insurance a good idea?
• What happens if my pet doesn’t have insurance?
• Pet insurance FAQs
• Summary of our guide to pet insurance

Pros and cons of pet insurance

What does pet insurance cover?

What pet insurance covers will depend on the type of pet insurance plan you purchase. Pet insurance providers generally offer four different kinds of plans:

• Accident and illness coverage
• Accident-only coverage
• Wellness plans
• Accident, illness and wellness plans (also called comprehensive coverage)

Not all insurers offer all four plans. Many focus solely on accident and illness coverage. Most insurance companies consider wellness care to be an add-on.  Naturally, the more comprehensive the coverage, the higher your pet insurance premium.

Accident-only plans limit coverage to treatment for injuries caused by accidents and mishaps. With a combined accident-and-illness plan, on the other hand, your policy will cover the necessary treatment resulting from both accidents and health issues that develop throughout your pet’s life. That means your pet will be covered for anything from ear infections to serious trauma due to an auto accident.

Here’s what most accident and illness plans cover:

• Hereditary conditions
• Congenital conditions
• Chronic conditions
• Minor illnesses like allergies and urinary tract infections
• Cancer care
• Diagnostic procedures
• Hospitalization
• Emergency treatment
• Prescription medicines
• Alternative care (acupuncture, hydrotherapy, etc.)
• Behavioral issues

Note that neutering and spaying, which most responsible pet owners will take care of early in a pet’s life, are not covered under accident and illness plans. A typical accident or illness policy won’t cover preventive care, including vaccinations, heartworm tests and fecal exams. Neither will it cover vet exam fees, which represent a significant portion of any vet bill.

Additionally, most pet insurance policies don’t cover pre-existing conditions. That’s one way in which they’re different from human health insurance plans. However, this restriction doesn’t mean a pet policy will never cover treatment for an ongoing health problem. If your pet has suffered from a particular health problem before, many pet insurance policies impose a waiting period of a year before they will cover treatment for the problem again.

Here’s what most wellness plans cover:

• Annual shots, rabies shots, and boosters
• Flea and tick protection
• Heartworm and other blood tests
• Urine/fecal tests
• Deworming
• Anal gland expression
• Dental cleaning

Some, but not all, pet insurance companies offer wellness coverage as an option. Wellness plans reimburse you for the cost of preventive pet care. And annual wellness visits — that is, checkups — which are helpful to maintaining your pets’ health, are covered.

Wellness insurance can drive your premiums up considerably, sometimes by 50% or more. Before purchasing a wellness plan, we recommend you look at last year’s bill for an annual wellness visit. Compare that expense to the cost of a wellness plan. Sometimes the cost of these plans exceeds what you’d pay for routine care.

When should you consider pet insurance?

Buying a pet insurance policy can make sense, even for older pets, if you want to give your pets the best possible health care — and are willing to pay your share of that care (since the cost to treat serious conditions, in premiums and co-pays, can still be steep under a pet policy).

Pet insurance is, not surprisingly, less expensive when your pet is young and healthy — and less likely to run up big treatment bills. And although some pet plans cover pets of any age, most pet insurance companies set a maximum enrollment age. You can also expect your pet insurance premiums to rise as your pet ages, often sharply.

How much is pet insurance?

Pet insurance premiums can vary widely depending on the type of coverage you choose, the breed of cat or dog you have, your pet’s age, location and, in some cases, your pet’s health history. But premiums are not the only factor to consider when calculating the cost of pet insurance.

You’re bound to have out-of-pocket expenses with any plan you buy. When you bring your pet to the vet, you will almost certainly have to cover a copay each time. You’ll probably also have to meet a deductible before the plan starts to cover a portion of your pet’s vet bills. Most pet insurance plans allow you to choose your deductible, ranging from 10% to 30% per covered cost. Plans with higher deductibles cost less each month.

Precise pet insurance quotes are easy to obtain on pet insurance company websites. That being said, here are some average costs to guide you.

Average insurance cost for cats

Average monthly cost of a $5,000 policy	Average monthly cost of an unlimited benefits policy
$28	$50

Average insurance cost for dogs

Average monthly cost $5,000 policy	Average monthly cost unlimited benefits policy
$35	$56

What are the best pet insurance companies?

The pet insurance industry continues to grow as more and more people insure their pets. By some estimates, 3.1 million pets are insured in the U.S. There are dozens of pet insurance companies for you to choose from, some of which are affiliated with well-known insurance carriers that also offer car, life, and homeowners’ insurance — and may offer a bundling discount if you also get a pet policy from them.

The best pet insurance providers offer pet owners lots of options:

• Choice of coverage, including accidents, illnesses and wellness
• Choice of coverage limits
• Option to choose your deductible
• Ability to select a veterinary care provider

According to the Money Research Collective’s top picks for the best pet insurance companies, the following companies offer excellent coverage and value:

• Healthy Paws – Best for Alternative Care
• Spot – Best for Unlimited Coverage
• Figo – Best for Reimbursement Options
• Trupanion – Best for Low or No Deductible
• ASPCA – Best for Genetic Conditions
• Embrace – Best for Diminishing Deductible
• Lemonade – Best Claims Process
• Pets Best – Best for Affordable Premiums

Is buying pet insurance a good idea?

A policy could be a good idea if you don’t have enough money to cover large veterinary expenses but can afford a monthly pet insurance premium — along with the co-pays and deductibles required by the pet’s plan. The cost of pet surgeries and cancer care, for example, can easily reach thousands of dollars. Lengthy hospitalization costs add up, too. So if you want to be certain you can give your pet the care they need, even in an emergency or life-threatening situation, pet insurance can be a reassuring buy.

The catch, however, is that pet insurance can be expensive. You could pay thousands of dollars in monthly premiums over the life of your pet, and in many years may not reach the amount of the deductible under your policy. The coverage may only pay off financially, then, in the event that your furry companion develops a serious condition or suffers an accident that requires surgery. Additionally, pet insurance premiums will increase as your pet gets older, even if you got the policy when your pet was a healthy puppy or kitty, when premiums are much cheaper.

A final consideration: most, though not all, insurers require the pet owner to pay bills upfront and then wait for reimbursement under the policy. That means you’ll probably need the means to cover vet bills, which can easily run to three — or, for serious treatment, even four or five — figures until the claim is processed by the insurance company.

What happens if my pet doesn’t have insurance?

Pet owners who don’t have insurance are fully liable for their vet bills. Where pet insurance should reimburse you for vets bills — minus your deductible or co-pay — before your credit card bill comes due, no such reimbursement will come for those who lack insurance. If that financial burden is too much to pay at once, many vets in offer you payment plans for clients who can’t afford to pay their vet bills immediately.

Fortunately, many organizations dedicated to animal welfare, like Planned Pethood and local humane societies, offer low-cost spaying and neutering. If you can’t afford to pay for veterinary care, you can also research local pet rescue groups in your area. They may have funds on hand to help you pay your vet bills. Some pet rescue organizations are breed-specific. Golden Retriever, German Shepherd and Greyhound rescues are especially common.

Summary of our guide to pet insurance

To summarize, here are a few questions to consider when looking for a pet care policy:

• Does the plan cover accidents, illness, and preventive care?
• How does the plan define pre-existing conditions?
• Can you customize your plan by choosing your own annual deductible, co-pay reimbursement level, and coverage limits?
• Does your plan allow you to visit any vet?
• Does your plan reimburse your vet directly, or do you have to file a claim?
• Can you find a plan that suits your budget?