Is Pet Insurance Worth It? (2024 Guide)
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Part of owning a pet means visiting the vet, but the cost of pet health care can be expensive. A pet insurance policy ensures you won’t have to worry about straining your budget if your pet needs medical care for an unforeseen illness or injury, but you may be wondering if pet insurance is worth it.
We analyzed the cost of pet insurance from the best pet insurance companies and compared that to typical vet care costs. In this article, we’ll share our findings and help you determine whether pet insurance will help you save money on veterinary expenses.
When is Pet Insurance Worth It?
Veterinary expenses can be costly, especially if your pet has a genetic condition or your aging dog or cat needs senior care. It might be worth investing in a pet insurance policy to give you peace of mind that your pet’s medical costs will be covered. Enrolling in a pet insurance policy is worthwhile if you aren’t prepared to pay unexpected vet bills.
What Is Pet Insurance?
Pet insurance is a health care insurance plan for your furry friend. It’s designed to lessen the burden of expensive, unexpected vet bills. Policyholders pay a monthly premium in exchange for reimbursement for medical bills when their pet gets sick or hurt.
How Does Pet Insurance Work?
Pet insurance works differently from your own medical insurance. After your pet receives vet care and you pay the bill, you submit a claim to your insurance company. Once approved, your provider reimburses you a percentage of what you spent. The amount you receive depends on how you customized your policy’s reimbursement rate, deductible, and coverage limit at sign-up.
Payouts won’t begin until your deductible has been met. After that, you can expect to receive a portion of your bill based on your reimbursement rate until you reach your annual limit.
Your coverage limit is the maximum amount your provider will reimburse you in a given year. Bills that exceed your coverage limit are paid out of pocket. Limits can range between $2,500 and $100,000, with some providers offering an unlimited option. Most coverage limits are annual, but some providers—such as Wagmo—offer a per-incident or lifetime limit.
Much like human medical insurance, every pet insurance policy comes with a deductible or a set amount policyholders must pay before the provider will reimburse them. Most providers give you the option of several deductibles to choose from, ranging between $100 and $1,000. The higher the deductible, the lower your monthly cost.
Your reimbursement rate is the percentage of a bill that you will receive back, ranging from 50% to 100%. If you have a vet bill for $500 with an 80% reimbursement rate, your pet insurance company will reimburse you $400. Some providers have a set reimbursement rate, such as Trupanion, at 80%. Other providers offer various options.
How Much Does Pet Insurance Cost?
To decide if pet insurance is worth it, consider the costs of a policy compared to the costs of out-of-pocket veterinary care.
Pet insurance can run between $10 and $100 per month. Providers consider your pet’s age, breed, species, and location to determine your monthly premium. Dog insurance averages $30–$50 per month, while cat insurance averages $15–$30 per month.
Older pets have more expensive premiums. Breeds prone to certain genetic conditions are also more costly to insure. For example, German shepherds are predisposed to hip dysplasia, which means they may need expensive surgery and numerous follow-up appointments over the dog’s life. Because of these anticipated expenses, a monthly premium for a German shepherd could be more than that for a mixed-breed dog.
We looked at some of the top pet insurance providers and sample monthly costs based on ZIP codes across the United States, as well as various ages and breeds of dogs and cats.
| Provider | Lemonade | Spot | Embrace | Healthy Paws | Spot |
|---|---|---|---|---|---|
|
Animal Breed |
Medium mixed dog |
Labrador retriever |
Poodle |
Mixed breed cat |
Maine coon |
|
Gender |
Male |
Female |
Male |
Male |
Female |
|
Age |
4 years |
1 year |
6 years |
4 years |
1 year |
|
Location |
Raleigh, NC (27601) |
San Francisco, CA (94016) |
Salt Lake City, UT (84044) |
Pittsburgh, PA (15106) |
Des Moines, IA (50303) |
|
Reimbursement level |
80% |
70% |
90% |
80% |
70% |
|
Coverage limit |
$5,000 |
$5,000 |
$5,000 |
Unlimited |
$2,500 |
|
Deductible |
$250 |
$500 |
$500 |
$250 |
$100 |
|
Monthly premium price |
$20.20 |
$45.54 |
$65.07 |
$19.66 |
$25.42 |
What Does It Cover?
Pet insurance covers unexpected veterinary bills associated with accidents and illnesses, such as treatment for broken bones, animal bites, surgery, and medication. You have a few plan options to choose from.
Types of Pet Insurance Plans
The two most common types of pet insurance plans are accident-only policies and accident-and-illness policies. Each offers different levels of coverage and pricing.
What Most Plans Cover
While every policy comes with its own unique offerings and fine print, many policies cover similar conditions and treatments.
Accident-only coverage includes physical injuries, such as:
- Bite wounds
- Broken bones
- Cuts
- Poisoning
- Swallowed objects
- Torn ligaments
- Toxic ingestions
Accident-and-illness policies cover physical injuries plus certain diseases and conditions, which may include:
- Arthritis
- Cancer
- Chronic conditions such as allergies and diabetes
- Ear infections
- Eye infections and trauma
- Gastrointestinal issues
- Hereditary conditions including heart and respiratory problems
- Hip dysplasia
- Lipomas or other growths
- Skin infections
- Urinary tract infections
Coverage may also include diagnostics, surgeries, hospitalizations, prescription medications, and mobility devices.
What Most Plans Exclude
Pet insurance companies don’t cover preexisting conditions, which are defined as any illness or injury your pet had before you enrolled in an insurance plan. This can include conditions that your pet showed symptoms of even if it wasn’t diagnosed. Providers also won’t cover conditions that arise during your waiting period, which is the set number of days policyholders have to wait before their insurance becomes effective.
Other pet insurance exclusions can include the following:
- Behavioral training
- Breeding and pregnancy care
- Cosmetic procedures
- Elective procedures
- Experimental treatments
- Grooming
- Illnesses or injuries due to pet owner negligence
- Natural supplements
- Transportation and boarding
Wellness Care
Standard pet insurance policies don’t cover routine care for your pet. Pet insurance helps pet owners with larger, unexpected bills.
Select providers offer wellness or preventive care coverage as an add-on to your base policy. It costs a monthly fee in addition to your premium and covers various services up to a certain dollar amount.
Preventive care add-ons can provide coverage for the following services and treatments:
- Annual checkups
- Blood work
- Fecal testing
- Parasite prevention
- Spay/neuter surgery
- Urinalysis
- Vaccinations and boosters
If you want coverage for the above services, narrow your search down to companies that offer a monthly add-on. Wagmo is the only provider that offers a stand-alone wellness plan you can buy without purchasing a base policy.
What Are Average Veterinary Care Costs?
According to a survey by the American Pet Product Association, dog owners spend an average of $700 per year on routine and surgical care while cat owners spend about $379. These numbers don’t reflect individual conditions and how much they could cost.
A 2019 report from Healthy Paws Pet Insurance compared the conditions for which claims were most frequently submitted, as well as what those conditions would cost without pet insurance.
Below, we’ll look at the top five conditions and costs for dogs and cats.
Common Conditions and Costs for Dogs
| Condition | Potential Treatment Cost* |
|---|---|
|
Eye conditions (such as glaucoma, cataracts, dry eye, abrasions, and infections) |
$7,637.00 |
|
Ear infections (caused by rashes, allergies, bacterial or yeast infections, cysts, or cancer) |
$12,954.00 |
|
Pain (caused by aging, arthritis, trauma, genetic conditions, or accidents) |
$11,425.00 |
|
Skin conditions (such as allergies, bacterial infections, insect bites, and rashes) |
$4,138.00 |
|
Stomach issues (caused by food allergies, inflammation, toxic ingestion or a severe illness) |
$29,086.00 |
*Costs are based on the highest covered claim filed for each condition with Healthy Paws between Jan. 1 and Dec. 31, 2019 for dogs. Veterinary costs for your pet could be higher or lower than those listed here, depending on your location and your pet’s age and breed.
Common Conditions and Costs for Cats
| Condition | Potential Treatment Cost* |
|---|---|
|
Cancer (including lymphoma, skin cancer, and other sarcomas) |
$11,643.00 |
|
Skin conditions (caused by infections, pest bites, or environmental or food allergies |
$1,695.00 |
|
Stomach issues (including food allergies, inflammation, intestinal bacteria, and poisoning) |
$24,402.00 |
|
Heart conditions (including blood clots, heart disease, heart valve issues, and heart murmur) |
$7,606.00 |
|
Urinary tract infection (UTI) (could lead to future kidney problems) |
$12,587.00 |
*Costs are based on the highest covered claim filed for each condition from Healthy Paws between Jan. 1 and Dec. 31, 2019, for cats. Veterinary costs for your pet could be higher or lower than those listed here, depending on your location and your pet’s age and breed.
Some dog and cat breeds are susceptible to genetic conditions, which can lead to costlier vet bills. For example, French bulldogs are predisposed to respiratory issues, which could require surgery. This procedure could cost thousands of dollars.
What Are Alternatives to Pet Insurance?
While your pet’s health care can be expensive, pet insurance may be an added monthly expense you don’t want to take on. There are a few alternatives to pet insurance that can help you prepare financially for your pet’s veterinary care, including:
Is Pet Insurance Really Worth It?
According to the North American Pet Health Insurance Association (NAPHIA), pet insurance has increased in popularity over the years—and for good reason. A pet health insurance policy gives you peace of mind, so you don’t have to worry about your budget and can focus on caring for your pet. We recommend getting quotes from at least three pet insurance providers to compare pricing. See below for four of our top choices for pet insurance providers.
FAQs About Pet Insurance
Is pet insurance worth it for senior dogs?
Pet insurance can be worth it for senior dogs. Pet insurance covers conditions such as arthritis, cancer, and diabetes. However, policies for older pets can be more costly, and your provider won’t cover conditions your pet already had before enrollment.
Does every veterinarian take pet insurance?
Yes, every veterinarian takes pet insurance. You submit your vet bill to your provider after it’s already been paid, and your provider reimburses you directly. Therefore, you can take your pet to any licensed veterinarian in the United States.
Does pet insurance cover the entire bill?
Pet insurance covers a portion of your bill based on your reimbursement rate. Most pet insurance providers require pet owners to pay the entire bill up-front, and you’ll be reimbursed for the entire bill if you have a 100% reimbursement rate. Any percentage less than that will result in reimbursement of only a portion of the bill.
