Pet insurance, like its human equivalent, varies from animal to animal. Different animals, breeds, and ages are all insured at different rates, and different plans cover different types of care. And what is covered is often not worth the cost.
But for many pet owners, pet insurance gives them the reassurance that they won’t have to make the impossible choice between a $5,000 operation and saying goodbye to a pet member. the four-legged (or winged) family.
Before you buy, you should be aware that pet insurance can be expensive and has many exclusions. Let’s take a look at what pet insurance covers and how much it costs.
What Pet Insurance Covers and (Doesn’t Cover)
Figuring out what pet insurance covers can be as confusing as figuring out your health insurance. The difference is that a lot of the cover depends on the breed of the pet is insured, so you’ll need to research the policy taking into account your pet’s health history and potential future health needs.
Below we’ve highlighted the types of treatment that most policies do and don’t tend to cover, but you’ll want to check the specifics of the one you’re considering to make sure it meets your needs.
What Most Policies Cover
- Diagnostic tests
- surgeries
- Medication
- Processing
What most policies don’t cover
- Dental care
- Pre-existing or hereditary conditions
- Preventive care visits or wellness checkups
These limitations vary from policy to policy, so pay close attention to terms when researching. Breed- or animal-specific hereditary conditions are sometimes difficult to define, and some companies cover them if they arise after you enroll, so talk to your vet about potential issues before deciding on an insurance plan.
And if you own an “exotic” animal like a horse, lizard, or parrot, you may need to research specialist insurance companies.
How to choose the right insurance
In addition to what your plan covers, there are a few other factors to consider when choosing a pet insurance policy:
- Premium costs
- Waiting times
- Deductibles and quotas
- Refund percentages
- Maximum benefit amounts
If it sounds as complicated as choosing your health insurance, you’re not mistaken. You will need to weigh all of these factors against the cost of care your pet might need and decide if the insurance is worth it.
Pet insurance premiums range from $10 to $70 per month, and policies can cover 70% to 90% of your costs or charge thousands of dollars in deductibles before your benefits kick in.
This means that the cheapest plan may not be the best choice if it has a very high deductible or only reimburses a small percentage of each claim. Also keep in mind that many pet insurance companies offer reimbursement only, which means you’ll still be paying your vet bills out of pocket while you negotiate what you’re entitled to.
The biggest issues to watch out for if you want to purchase pet insurance are service-related. Not all companies are the same, and many exclude specific treatments or pay different percentages on different procedures, so read the policy as carefully as you would yours. Many also vary your deductible depending on the type of incident and treatment, which can make planning for an emergency difficult.
Despite what the numbers say, some vets recommend insurance for pets of all ages and sizes because it provides peace of mind and works as a savings plan for larger bills that may arise. Some say they usually send the entire bill to the insurance company because “you never know what might be covered,” which seems to accentuate the biggest problem with pet insurance: the unknowable results of claims.
If you still want to go, compare policies and get prices from at least some of the biggest pet insurance companies like Trupanion and Healthy Paws. Some home and auto insurance providers may also offer discounts on certain pet plans, so be sure to check with them first.
Alternatives to pet insurance
If you don’t like the idea of pet insurance, there are alternatives, but they will require a more proactive approach on your part. One option is to start funding an account for your pet’s care, setting aside those insurance premiums anyway in case your pet has a major health issue or an unforeseen emergency.
To establish an accurate budget, the first thing you need to do is research your pet and see what types of common inherited conditions it might have. Then call your veterinarian and ask for a rough estimate of the cost of care.
With these in hand, you can create a hypothetical makeshift payment plan. Be sure to include issues like potential broken bones and dental work.
As for the treatments themselves, shop around for the best deals. Costs are going to vary depending on your location, but many larger cities have less expensive nonprofit clinics or universities that are willing to work with you on pricing and payments if needed. These are often on a first-come, first-served basis, so be prepared to spend a lot of time in the office. Some offices may offer annual visits and low-cost medications, but not treat major chronic conditions.
Some vet clinics even offer subscription care plans that give you access to discounts on services like vaccinations and unlimited preventative care visits for a monthly or annual fee. VCA’s CareClub is an example: our membership costs about $30 per month.
The benefit of pet insurance will depend on your location, type of pet, and lifestyle. If your pet roams the streets freely, it will be more prone to accidents, and pet insurance might be worth it. If you have a dog that wants to eat anything it can put in its mouth and chase anything that moves, buying a plan might be the right choice. If you have a healthy, active indoor cat, the cost-benefit ratio may make less sense.
Because one thing is certain: if your animal remains in good health and has no major medical problems, the insurance will not be worth it. Even if your pet needs major surgery costing, say, $4,000 once in a lifetime, you may only break even at the best of times.
Like any other insurance, choosing not to buy coverage for your pet is simply a bet that it won’t need it or that its care will cost less than your premiums over the years. Pet insurance is more for people who don’t want to set up a separate fund to cover health costs or who want the peace of mind that insurance provides. If this is you, all we can say is to thoroughly research your potential plans before settling on one.
