Is it worth it to buy pet insurance? Here’s everything you need to know before buying insurance.
Pet insurance can help cover the costs of a pet emergency, but it may not cover everything.
An animal companion can brighten your life, but if they are hurt or become ill, you will be responsible for their medical treatment. If you don’t have hundreds of dollars on hand, this might put a strain on your budget.
This is where pet insurance may help. This type of insurance can help you pay for your pet’s injuries and illnesses. However, not every situation is covered by pet insurance, so here’s what you need to know to decide if getting an average is the best choice for you (and your cat).
What is pet insurance, exactly?
Pet insurance is a type of insurance in which you pay a set amount known as a premium (which is usually paid monthly or annually). When your pet incurs approved expenses, usually at a licensed veterinarian’s office, your insurance reimburses you for a percentage of the cost (some pet insurance carriers allow you to pay your doctor directly, but this is less common).
When you purchase coverage, you and the insurance provider agree on the amount of compensation you will get for the treatment of your pet. A pet insurance policy’s cost and amount reimbursed are determined by three moving factors: the deductible, the annual limit, and the reimbursement percentage.
Here’s how each of these factors influences the amount you’ll be reimbursed or charged:
The ability to subtract. This is the amount you will be responsible for before your insurance kicks in. Your deductible is usually reset each year, but some policies include per-incident deductibles that must be fulfilled each time your pet visits the clinic. Check your policy to discover if your deductible is per incident or year.
The amount of compensation. The amount you’ve chosen is to be paid once you’ve met your deductible, which is often 70%, 80%, or 90% of the cost.
Annual coverage limit. The most you may be reimbursed for in a year. Some insurance companies and policies have indefinite yearly coverage limits.
Several companies stand out in terms of cost, quality, and coverage when it comes to pet insurance. Spot, our top overall option, and Embrace, our runner-up pick, are two of our top pet insurance companies.
What is the cost of pet insurance?
According to the Insurance Information Institute, in 2022, the average cat owner spent around $32 per month for accident and illness coverage, while the average dog owner paid approximately $53 per month for the same coverage.
Pet insurance premiums, on the other hand, vary based on the type of pet you’re insuring, the breed, the age of your pet, the type of coverage you choose, the restrictions you specify, and your location. It’s important to note that older pets are more expensive to insure, and pet insurance costs may climb as your pet matures.
Evidence suggesting pet insurance may be a good thing
While having pet insurance makes sense in several scenarios, here are two of the most common ones in which you should look for a policy:
You don’t have a substantial emergency fund.
If you just have a little emergency fund and are worried about paying a potentially large vet cost, getting pet insurance may make sense. If your pet requires emergency, expensive medical treatment, pet insurance may help you afford the bill in the long run.
While experts recommend saving three to six months’ worth of expenses for an emergency, such as a pet accident or sickness, this is not always possible. Pet insurance may be able to meet that demand while you work on building up an emergency fund or savings.
Your pet is still young and in fantastic health.
When the insured party is young and healthy, pet insurance, like life insurance, is the most economical. Because your pet may not yet have developed chronic diseases that would be deemed pre-existing conditions, you may obtain the finest insurance coverage at this time.
Pets as young as seven or eight weeks old can often be enrolled for pet insurance; however, some pet insurance companies have stricter age requirements.
What does pet insurance not cover?
Before enrolling your pet in a new insurance policy, it’s critical to understand what your coverage does and does not cover. Because each pet insurance policy differs somewhat, reading the fine print may help you understand the coverage better.
Your policy documentation will specify what your specific coverage excludes, and exclusions may vary from company to company. Some common situations that are not covered by most policies include:
Existing medical issues
Pet insurance seldom covers issues that your pet had before enrolling in coverage. For example, if your pet had a chronic illness like diabetes before enrolling in pet insurance, expenditures related to that condition may not be covered.
Routine expenses and health-care appointments
Routine expenses like as yearly vet visits, immunizations, and other costs are often excluded from standard accident or accident and sickness coverage.
While insurance that covers routine vet visits and vaccines is available, it is normally an additional cost. Wellness coverage is included in several of our top pet insurance options. Wellness programs, on the other hand, raise your expenditures, and it may be more cost-effective to pay these fees without the help of insurance.