Our pets’ lives are riddled with uncertainties. Despite our vigilance, our puppies manage to discover and devour socks, while our kittens explore shelves and sometimes take unexpected tumbles. It falls on us to nurse them back to health. Our affection for our pets is unwavering, and pet insurance grants us the ability to care for them without the weight of financial strain.
key Takeaways:
- Vet bills are expected to become even more expensive.
- Pet insurance will reimburse the cost of your pet’s accident or illness.
- You can save hundreds or thousands of dollars.
The future holds unforeseen events—we can’t foresee when or how our pets might fall ill, or the extent of the resulting expenses. Pet insurance serves as a shield against these sudden veterinary bills.
Over the past five years, the number of insured cats and dogs in the U.S. has more than doubled.
In today’s climate of financial unpredictability, the significance of pet insurance is magnified. As everyday expenses escalate and market trends fluctuate, it’s a pertinent question: what plan would you have if faced with an unforeseen $6,000 vet bill for your beloved dog or cat? This becomes even more costly if you have multiple pets.
According to the North American Pet Health Insurance Association (NAPHIA), the count of insured pets in the U.S. surged by 28% last year alone. Presently, over four million dogs and cats across the country are covered by pet insurance.
How Much Does Pet Insurance Cost?
Typically, pet insurance averages at $47 per month for dogs and $29 per month for cats. However, the actual expenses can vary, influenced by factors such as:
- Geographic location
- Your pet’s age and breed
- Customizations within your policy
- Eligibility for specific pet insurance discounts
- Here are a few examples illustrating the potential range:
For a Chihuahua puppy residing in Sacramento, California, pet insurance may range from $22 to $31 per month.
An adult Golden Retriever in Newark, New Jersey might incur costs ranging from $43 to $100 monthly.
Meanwhile, for a cat located in Austin, Texas, pet insurance expenses might fall between $16 and $22 per month.
How Does Pet Insurance Help You?
Pet insurance serves as a safety net for unexpected veterinary expenses due to accidents, injuries, or illnesses. Reimbursement rates from top insurance companies can range from 80% to even 100% of the vet bill after meeting your deductible.
Similar to most insurance models, you pay a monthly premium to maintain your coverage. Once your deductible is fulfilled, your insurance provider covers your pet’s eligible expenses, based on your reimbursement rate, within the limits of your policy.
What Pet Insurance Covers
- Unexpected illnesses (such as skin allergies, gastrointestinal issues, or glaucoma)
- Chronic diseases (like diabetes, arthritis, or heart conditions)
- Accidental injuries (like foreign object ingestion, broken bones, or bite wounds)
- Dental illnesses (such as periodontal disease or tooth resorption)
- Surgeries (including bloat, cruciate ligament conditions, or cataracts)
- Hereditary conditions (e.g., hip dysplasia, hyperthyroidism, von Willebrand disease)
- Prescription medications
- Cancer diagnosis and treatment
- Emergency exam fees
- Diagnostic testing (like fecal exams, allergy tests, x-rays, bloodwork, or MRIs)
Many providers offer additional coverage benefits, potentially reimbursing costs for:
- Lost pet advertising and reward
- Behavioral modification therapy
- Vacation cancelation fees
- Breeding and pregnancy expenses
- End-of-life care, euthanasia, cremation, or burial
- Alternative treatments (e.g., physical therapy, acupuncture, chiropractic care)
What Pet Insurance Does Not Cover
However, pet insurance typically doesn’t cover pre-existing conditions. Some providers might cover curable conditions after a waiting period with no recurring symptoms. Pets with pre-existing conditions can still get insurance, excluding coverage for that specific existing condition.
Other exclusions might include:
- Pet supplies (food, toys, treats)
- Cosmetic procedures
- Elective surgeries
- Routine care/wellness exams*
- Preventive care*
- Spay/neuter*
- Vaccinations*
- Boarding or daycare
- Pet property damage
- Personal liability claims
- Specific exclusions
*Consider a Wellness Plan add-on if you’re interested in plans that reimburse for routine and preventive care like checkups, vaccinations, spaying/neutering, or dental cleaning.
Reviewing the fine print of your pet insurance policy is a wise move to understand its coverage details.
Types of Pet Insurance Plans:
Accident-Only Coverage: This plan reimburses emergency care expenses resulting from accidents, such as injuries from a car collision or falling down stairs. However, it excludes coverage for illnesses or breed-specific issues.
Accident & Illness Coverage: Representing around 98% of plans in the pet insurance industry, this type covers both accidents and unexpected illnesses. While it doesn’t include preventive care or pre-existing conditions, it typically reimburses for most other medical expenses.
Accident-Illness Plan with Wellness Add-On: This comprehensive plan, though more expensive, offers the highest level of coverage. It includes almost everything except pre-existing conditions, encompassing a wide range of health issues.
How Pet Insurance Plans Work
Your deductible is the amount you’re responsible for paying before your provider starts reimbursing any eligible expenses.
Let’s break it down with an example: Imagine you have a plan with a $200 deductible and a 90% reimbursement rate. If your cat needs a $1,400 dental extraction, here’s how it works: Deduct the $200 from the total bill ($1,400 – $200 = $1,200). Then, with the 90% reimbursement rate, you’d ultimately save $1,080 ($1,200 x 90% = $1,080).
Payout limits come in two forms: “per-incident” or “annual limit.” The most advantageous plans typically have annual limits, and some even offer unlimited payouts. With an annual limit, you need to meet your deductible yearly, but the potential payout has no defined cap.
Your coverage kicks in after the waiting period, which varies among plans and providers. It’s crucial to check the fine print, especially regarding waiting periods for specific conditions.
For instance, one plan might have a 12-month waiting period for knee injuries, while another sets it at only 30 days. If you have a larger dog prone to knee injuries, choosing the plan with a shorter waiting period for knee injury coverage becomes crucial.
The Rising Cost of Veterinary Care
According to the American Pet Products Association (APPA) National Pet Owners Survey 2019-2020, Americans spent a record $95.7 billion on their pets, of which around $29 billion went towards veterinary care.
A 2019 report by the American Veterinary Medical Association (AVMA) revealed that dog owners incurred an average annual veterinary expense of $440, while cat owners spent an average of $267 per year.
The North American Pet Health Insurance Association (NAPHIA) reported that in 2018, the total amount spent by pet owners on insurance premiums reached $1.42 billion, signifying the increasing recognition of the financial risk associated with veterinary bills.
Accidents
Pets are prone to accidents, and such incidents often necessitate immediate veterinary attention. These visits can be expensive due to the urgent nature of treatment:
Common accidents include broken bones, lacerations, and ingestion of foreign objects. These can require X-rays, stitches, medications, and hospitalization.
The expenses associated with accident treatment can range from a few hundred dollars for minor injuries to several thousand dollars for more severe situations.
Surgeries
Surgical procedures, including spaying and neutering, tumor removal, hip dysplasia surgery, and orthopedic interventions, are quite common in both dogs and cats.
The average cost of spaying or neutering a dog can range from $200 to $800, while for cats, it may range from $120 to $500.
More complex surgeries, such as tumor removal or orthopedic procedures, can cost thousands of dollars.
Illnesses
Pets are susceptible to various illnesses, including chronic conditions, infectious diseases, and age-related ailments.
Chronic conditions like diabetes, heart disease, and cancer require regular monitoring, medication, and occasional hospitalization, which can accumulate substantial veterinary costs.
Treatment for infectious diseases, such as respiratory infections and parasite infestations, can cost hundreds of dollars, including diagnostic tests, medication, and follow-up appointments.
Conclusion
In the current landscape, pet insurance often proves its value, surpassing the reliability of merely stashing funds for unforeseen circumstances. Opting for suitable coverage ensures you can afford necessary diagnostics, treatments, and medications for your pet without bearing substantial financial jeopardy.
