Should you get pet insurance?

Content Type: Article

About 6.25 million pets in North America have insurance policies. Should your furry friend be one of them?

By Monica Michael Willis

Millie, a content program about women and money, is licensed from Dotdash Meredith, publisher of Real Simple, InStyle, Investopedia, The Balance and more.

Much like shopping for your own medical coverage, pet health insurance (PHI) can be complicated. And costly. Dog and cat owners pay an average of $56 and $32 per month, respectively, and older pets can cost up to four times as much as younger ones. In addition to the type of policy and the scope of coverage you chose, monthly premiums are determined by your zip code, as well as your pet’s breed, age and other factors.

PROS

Cats and dogs are eligible for PHI as young as 8 weeks up to about 12 years
Monthly premiums are more affordable if your pet is young and healthy
Many policies don’t have networks, so you can choose the vet you want
Some cover up to about 90% of the cost of emergency care and unexpected illnesses
Peace of mind

CONS

Not all policies cover preventative care, such as routine visits and vaccinations, unless you pay extra
Purebred dogs or cats can cost more to insure
Pre-existing conditions are typically not covered
Consumers pay veterinary costs up front, then file a reimbursement claim with the insurer
Monthly premiums increase as pets age in most instances

What does pet insurance cover?

There are two primary coverage types: accident and illness, and accident only plans. Accident and illness plans cover both accident and illness-related veterinary care; accident only is usually cheaper, but just covers accidents. Wellness plans, which are often added on to policies, are designed to help defray the costs of preventative care but may not be worth the money.

Pet insurance coverage

Most carriers pay 70% to 90% of all covered veterinary costs, but some also have a yearly cap on the amount they will cover.

Pet insurance with no waiting period?

All policies have a “medical exclusion period,” which can range from about 10 to 30 days, between enrollment and when coverage is in effect.

Saving money

About one in 5 employers offer PHI as part of their benefits package, so many pet owners could score a better deal by signing up through their employers. Another way to save: Enroll multiple pets in a pet insurance policy. Many insurers offer a multi-pet discount, which ranges from 5% to 10%.

Is pet insurance worth it?

If peace of mind is what you’re after, pet insurance can alleviate the stress of costly and unexpected vet bills. But consider that paying à la carte for veterinary care can be cheaper than yearly premiums.

Fun facts

Animal Nation: About 66% of U.S. households (or 86.9 million) have a pet.
Lassie, America’s favorite canine TV star, was issued the nation’s first pet insurance policy in 1982.
Tweet! Birds are actually the most popular pet and can be found in 6.1 million households.

Monica Michael Willis is a journalist and former editor-at-large at Modern Farmer.