Wanna Get Pet Insurance? Here is What You Need to Know

Approximately 5.4 million pet insurance policies were active in the U.S. in 2022, a 21% uptick from the previous year. With this expansion, three common consumer grievances have emerged: lengthy claim reimbursement waits, denial of coverage for pre-existing conditions, and premium spikes.

This article provides tips from pet parents and experts so you can weigh the pros and cons and decide if pet insurance could be a wise investment for your furry friend.

Understand the Basics of Pet Insurance

What Is Pet Insurance?

Pet insurance helps dog and cat owners cover the cost of veterinary care expenses. It works similarly to health insurance for humans, where you pay a monthly premium in exchange for financial assistance when your pet needs medical treatment. The insurance provider will reimburse you a percentage of covered costs after you pay your deductible. Most pet insurance plans cover injuries stemming from accidents or illnesses, cancer treatments, hospitalization, surgeries, prescription medications, and more.

According to data from Forbes, the number of insured pets in North America has tripled over the past decade to over 86.9 million households with pets. With veterinary care and medications steadily rising in price, pet insurance provides a safety net to manage unexpected vet bills that could otherwise be financially difficult.

Types of Coverage

Pet insurance companies offer a range of policy options and add-ons to fit your needs:

• Accident-only plans cover unforeseen injuries like broken bones, bites, and swallowing foreign objects. They tend to be the most affordable policies.
• Comprehensive plans bundle accident coverage with illnesses and conditions common for your pet’s breed or age. This provides more extensive coverage.
• Wellness add-ons cover routine preventive care like vaccinations, dental cleanings, and annual checkups. This is helpful for budgeting pet care costs.

Key Takeaway: Pet insurance policies have different levels of coverage and types like accident-only, comprehensive illness, and wellness plans. Choose based on your pet’s needs and budget.

Assessing Your Pet’s Needs

Consider Your Pet’s Age and Breed

A pet’s age and breed are important factors in assessing their coverage needs and insurance costs. Younger and mixed-breed pets generally have lower premiums since they are less prone to hereditary conditions. Older pets or breeds prone to certain illnesses often benefit from more comprehensive coverage. Enrolling while your pet is still a puppy or kitten ensures pre-existing conditions that develop as they age won’t be excluded from coverage later.

Evaluate Your Financial Situation

Have an honest discussion with family members about what you can realistically afford for vet expenses if your pet has an emergency right now. The average cost for unexpected medical treatments, like ingesting a foreign object, is around $800 – $1500. Expenses this high could break most families’ budgets without insurance. Know your limits and identify if pet insurance could provide financial protection.

Key Takeaway: Consider your pet’s age, breed risks, and your own financial limits when assessing if pet insurance aligns with your needs.

Choosing the Right Insurance Provider

Research and Compare Providers

Reputable pet insurers like ASPCA, Nationwide, Embrace, PetPlan, and more all offer policies. Compare customer reviews, satisfaction ratings, premium costs, reimbursement rates, and ease of claims processing. Having confidence in your provider’s reliability provides peace of mind. Consider your vet’s recommendations as well.

Understand the Policy Details

Don’t just look at the monthly premium. Read the fine print so you know the deductible amount, reimbursement percentage, coverage exclusions, limits, and processing times. Make sure you understand these key details before signing up. An 80% reimbursement with a $500 deductible will be very different than a 70% reimbursement with a $200 deductible, for example.

Key Takeaway: Do your homework when choosing a pet insurance provider. Compare costs, reviews, and policy details closely.

Calculating the Costs

Premiums, Deductibles, and Co-Pays

Monthly premiums for pet insurance often range from $30 to $100, depending on your location, pet’s breed, and policy type. The deductible is what you pay out-of-pocket before insurance kicks in, typically $100-$500. After your deductible is met, you’ll have a co-pay percentage, usually 10%-30%. Insurance then covers the rest. Be aware that premiums can increase as your pet ages.

The Impact of Coverage Options on Price

Your choices directly impact your bottom line. Comprehensive plans are more expensive than accident-only. Lower deductibles and higher reimbursement rates also raise premiums. Expect to pay more for pets at higher risk. Identify the right balance between coverage and premiums you’re comfortable with. Wellness add-ons are nice for prevention but can add another $10-$30 a month.

Key Takeaway: Pet insurance costs will vary based on your policy details like levels of coverage, deductible amount, reimbursement rate, and additional wellness benefits.

Know the Exclusions and Limitations

Pre-existing Conditions

One key point to understand is that pet insurance does not cover pre-existing conditions. This includes any illnesses or injuries your pet already had when signing up or those actively being treated. Chronic conditions like diabetes or allergies diagnosed before enrollment are also typically excluded. Disclosing your pet’s full history is essential.

Waiting Periods

Many providers impose a waiting period of 14-30 days for accidents and about 12 months for illnesses after starting a policy. Illnesses manifesting during this period are usually excluded as pre-existing. Review waiting periods closely when selecting insurance.

Key Takeaway: Read the fine print to be aware of exclusions like pre-existing conditions and typical waiting periods before coverage takes effect after enrollment.

Making a Claim

The Claims Process

When your pet needs treatment, you pay the vet bill upfront as normal. Save all invoices and have your vet document services. You’ll then complete a claim form and submit it with copies of the bill and medical records from the appointment. Most companies reimburse you within 10-15 days of receiving your documentation. Simple!

Maximizing Reimbursements

Boost your chances for quick reimbursement by carefully completing all claim paperwork and clearly highlighting treatment costs and diagnosis codes on your vet bill. Be responsive to any follow-up requests from your insurer. Take detailed notes during appointments in case more details are needed later.

Key Takeaway: The claims process is straightforward – just pay your vet, save receipts, and complete claim forms. Carefully provide all details needed to facilitate prompt reimbursements.

Final Thoughts

The decision to invest in pet insurance ultimately depends on your specific situation. Determine if the peace of mind of coverage aligns with your needs and budget. Compare providers carefully to find the right balance of premiums and coverage that fits your finances. Read the fine print to avoid surprises down the road when filing claims.