Is Pet Insurance Worth the Money? (2024)

FAQs

Does pet insurance actually help? ›

"Insurance helps cover the unanticipated costs of pet ownership and can be a huge relief for owners as they typically cover 80-90% of the costs, depending on the plan," says Dr. Sarah Gorman, managing veterinarian at Small Door Veterinary in New York.

It's usually not too difficult to know when you should claim, and you can always check your policy documents or speak to your insurance provider if you're not sure. The only time it might not be worth claiming is if your policy excess – that's the amount you pay to make a claim – is more than the cost of the treatment.

We found that, on average, pet insurance costs $66 a month for dogs and $32 a month for cats. However, pet insurance premiums typically range from $15 to $90 a month. Pet insurance is an affordable alternative to paying vet bills out of pocket and can offer financial protection against high-cost emergency vet visits.

But without insurance coverage, the cost to treat unexpected pet emergencies can present a financial burden for the majority of pet parents — in fact, six out of 10 Americans have less than $1,000 in savings to spend in an emergency. In the worst cases, a pet medical emergency can lead to long-term expenses .

About half, or 44.6%, of pet owners stated they currently have pet insurance in our survey. On a larger scale, NAPHIA's 2022 State of the Industry Report found that more than 4.41 million pets were insured in North America in 2021, up from 3.45 million in 2020.

Having pet insurance allows you to choose treatments for your ailing or injured pet based on the best medical option available and not restricted based on family finances. Most pet insurance policies reimburse up to 80% of costs after deductibles. Provides an easy way to budget pet care costs.

Processing a pet insurance claim is usually straightforward and your payout should take between seven and 10 working days. If you'd like an estimated date for the payout, call your insurance provider. Depending on who you're with, you may be able to track your claim's progress online.

Depending on your provider, you can use accident coverage as soon as 48 hours after signing up. Illness coverage usually has longer waiting periods, beginning at 14 days.

Your deductible and reimbursem*nt level

Choosing a higher pet insurance deductible lowers the cost of your plan but increases your out-of-pocket costs at the vet. A lower deductible increases your plan's price, but you'll be reimbursed more on your claim.

So, once you've covered your deductible for a condition, your pet insurance will typically reimburse a percentage of any additional cost. That percentage depends on the policy you sign up for. In most cases, you'll be able to choose 70%, 80% or 90% reimbursem*nt coverage.

What does pet insurance typically cost? ›

How much does pet insurance typically cost? Pet insurance costs around $55 per month for an unlimited accident and illness plan for dogs, according to our analysis. The average cost of pet insurance for a cat for the same plan is about $47 per month.

It's true that you can generally expect your pet's insurance coverage cost to increase each year, along with their ever-increasing age. However, this doesn't mean that there aren't things you could—and sometimes should—consider changing about that coverage as time goes on.

Many pet parents overestimate the cost of pet insurance, don't think they'll need it, or have been misinformed about the benefits/effectiveness of pet insurance offerings.

Yes, pet insurance covers your indoor pet for accidents. While you might not like to dwell upon the bad things that could happen to your furry friend, and hope that being at home will keep them safe, accidents can happen.

Is a lifetime policy worth it? If budget is not an issue, lifetime cover is the most comprehensive pet insurance cover for your pet. Lifetime cover is typically seen as a premium option for pet insurance. As it's the most comprehensive type of insurance policy, it also is the most expensive.

Loss ratios vary depending on the type of insurance. For pet insurance companies the average loss ratios range from 50% to 60%. That means that for every $1 paid in premium, $0.50 to $0.60 are being spent on claims.

If you're asked about household pets on a home insurance application, you should always be truthful. Even if the questionnaire you fill out doesn't explicitly ask, it's still your responsibility to let your insurer know if there are any animals in the house.

Pet insurance protects you financially if your pet needs veterinary care. With pet insurance, you pay a monthly or annual premium to your insurer. The amount you pay will vary depending on factors like your pet's age, any pre-existing health conditions, and the type of pet insurance you choose.