An emergency surgery or a long-term illness can cost thousands of dollars. Pet insurance is one way to plan for that, but policies vary a lot, and the cheapest isn't always the best value. Here's what you need to know to decide.
How pet insurance works
Most pet insurance in the US works by reimbursement: you pay the vet, then send a claim to your insurer, who pays you back part of the bill. A few insurers can pay the vet directly.
Three numbers shape what you get back:
- Deductible: what you pay before the insurer starts paying, usually once a year.
- Reimbursement rate: the share of the bill the insurer pays after the deductible, often 70%, 80% or 90%.
- Annual limit: the most the insurer will pay in a year. Some policies have no limit.
A lower deductible, higher reimbursement rate or higher limit means a higher monthly premium.
Types of cover
- Accident-only: covers injuries such as broken bones, cuts and swallowed objects. It's the cheapest option.
- Accident and illness: also covers illnesses, from infections to cancer. This is what most people mean by pet insurance.
- Wellness add-ons: help with routine care such as vaccinations, checkups and dental cleanings. Do the math: they don't always save money.
What's usually not covered
- Pre-existing conditions: problems your pet had, or showed signs of, before the policy started, or during a waiting period.
- Waiting periods: most policies don't cover illnesses that start in the first few weeks.
- Cosmetic and elective procedures.
- Breeding and pregnancy costs, in most policies.
Read the exclusions carefully. Some policies limit cover for hereditary conditions, dental disease or certain breeds.
What it costs
Premiums depend on your pet's species, breed, age and where you live, as well as the cover you choose. Dogs usually cost more to insure than cats, and premiums rise as pets get older. The best way to know is to get quotes from a few insurers for the same deductible and reimbursement rate.
Is it worth it for you?
Pet insurance makes most sense if:
- an unexpected bill of a few thousand dollars would be hard to pay
- you'd want to treat a serious illness whatever it costs
- your pet is young and healthy, so nothing is excluded as pre-existing yet
It may make less sense if you have enough savings to cover a large bill, or if you put aside the cost of the premiums each month instead.
Tips for comparing policies
- Insure early. Young pets have fewer pre-existing conditions and lower premiums.
- Compare like with like: the same deductible, reimbursement rate and limit.
- Check how premiums rise with age, not just the first-year price.
- Read reviews about claims. How fast and fairly an insurer pays matters as much as the price.
Compare US pet insurance companies on our pet insurance page, with links to each insurer's website.