How do you get pet insurance?

What is pet insurance, and why do you need it?

Pet insurance plans help pay for costly veterinary services, like illnesses, accidents and preventive care. In exchange, you pay a monthly premium, and if you file a claim, you’ll need to meet a deductible before coverage applies.

Taking out a policy for your pet can help you avoid large and unexpected bills, making it easier to afford necessary treatments. Many pet owners value this safety net, especially if a sizable vet bill would present a financial burden.

Pet insurance can also expand treatment options by covering costly procedures that might otherwise be out of reach.

Is pet insurance affordable?

Pet insurance might be more affordable than you think. It’s a common misconception that pet insurance is too expensive or that plans won’t cover your pet’s needs. However, there are options for a range of budgets, and most pet owners can find a plan they can afford.

For example, accident-only plans are the most affordable, averaging $204.16 per year for dogs (about $17 per month) and $116.11 per year for cats (around $10 per month), but they won’t cover all your expenses. On the other end of the spectrum, the most comprehensive plans that include preventative care cost an average of $1,263.39 per year for dogs (about $105 per month) and $625.99 per year for cats (around $52 per month).

Types of pet insurance plans

Pet insurance plans typically fall into three categories:

• Accident-only: This is the most basic and affordable plan covering unexpected injuries from accidents. These plans typically include coverage for tests, surgeries, medications and hospitalizations related to incidents like ingesting foreign objects, car accidents, fractures, bite wounds and lacerations.
• Accident and illness: This comprehensive plan covers both accidents and illnesses. In addition to accident-related care, it includes coverage for diagnostics, surgeries, lab tests and treatments for various diseases.
• Wellness or preventative care: These plans are sometimes sold on their own but can also be added onto a standard accident-and-illness policy. A preventative care plan can cover routine care like wellness checks, vaccinations, microchipping, spaying, neutering, dental care and parasite prevention.

When reviewing your options, pay attention to the terms, including how long your pet can stay insured. Some policies offer lifetime coverage, meaning your pet remains insured as long as you continue renewing the plan. Others have upper age limits or restrict older pets to accident-only coverage.

How to assess your pet's insurance needs

To assess your pet’s insurance needs, consider factors like breed, age, health, lifestyle and budget, all of which will help you determine the right level of coverage.

• Breed: Certain breeds are more prone to health problems than others, which can end up costing a lot. For example, brachycephalic breeds (like pugs, boxers and Persian cats) are more likely to have breathing, digestive and mobility issues.
• Age: If your pet is already fairly old (over 10 to 14 years), it may be very difficult to find a policy they’ll qualify for. Many pet insurance companies only allow accident-only coverage for geriatric pets.
• Health and lifestyle: Some plans may exclude hereditary and genetic conditions like hip dysplasia and allergies or have longer waiting periods before covering them. Additionally, pets with an active lifestyle are more prone to injuries and may need a higher level of coverage.
• Budget: Consider how much you can set aside each month for your premium and what you could comfortably afford in an emergency. If you can handle an unexpected vet bill, you might opt for a higher deductible to lower your monthly premium.

Comparing pet insurance companies

There are a lot of reputable pet insurance providers to choose from. To find the best pet insurance plan, compare costs, coverage and customer reviews to ensure the policy meets your needs.

1. Compare pet insurance costs

Pet insurance pricing depends on four key factors:

• Monthly premium: The amount you pay each month for coverage
• Deductible: The amount you pay out of pocket before your insurance kicks in
• Reimbursement rate: The percentage of vet bills the provider reimburses (typically 70% to 90%)
• Coverage limit: The maximum amount you can be reimbursed per year or per condition

Look for a provider with high reimbursement rates and low deductibles.

If you anticipate your pet will need frequent care, look for a provider with high reimbursement rates and low deductibles. If your pet is healthy, a lower premium with a higher deductible may be more cost-effective. Some plans have coverage limits as low as $2,000, while others offer unlimited payouts.

2. Compare pet insurance coverage options

Not all plans cover the same conditions and treatments. If your pet has specific medical needs, make sure they aren’t excluded from the policy.

• Cruciate ligament injuries: These injuries are common in large breeds, but some providers won’t cover them or require a long waiting period.
• Dental care: If your pet has dental issues, you should look for a plan that covers routine cleanings and treatments.
• Hereditary conditions: Some breeds, like German shepherds and rottweilers, are prone to hip dysplasia, which some plans exclude.
• Prescription drugs and exam fees: Some plans don’t cover medications or vet exam fees, which can increase out-of-pocket costs.

3. Read customer reviews

Ask your vet or fellow pet owners for recommendations.

While provider websites outline pricing and coverage, customer reviews reveal real experiences with claims processing, customer service and reimbursement times. Look for:

• Fast and hassle-free claims processing
• Transparent pricing with no hidden fees
• Good customer service ratings

» COMPARE: Best pet insurance companies

How to apply for pet insurance

Most pet insurers have an online application process where you can both obtain a quote and enroll in a plan. Another option is our quote tool, which you can use to find the most competitively priced plans in your area.

You can also call most companies directly to obtain a quote and sign up for coverage. Either way, you’ll typically need to provide the following information:

• Species
• Gender
• Breed
• Age
• Size
• Medical history (including any preexisting conditions)
• Zip code

If you’ve found a plan you like, be sure to look at the mandatory waiting periods before you sign up. This is how long you must wait after you’re enrolled to start accessing care. While waiting periods vary, they typically range from 10 to 30 days and differ for accident and illness claims. Some conditions, like cruciate ligament injuries, may have longer waiting periods of up to a year.

Understanding the costs of pet insurance

The cost of pet insurance depends on factors like coverage level, your pet’s breed and age, and your location. Prices are increasing industry-wide, with premiums rising 16.7% from 2022 to 2023, according to the North American Pet Health Insurance Association (NAPHIA).

Average pet insurance costs

These averages only account for monthly premiums, but your actual cost depends on your deductible, reimbursement rate and coverage limit.

• Deductible: This is the amount you must pay out of pocket before your insurance starts reimbursing claims. Deductibles typically range from $0 to $1,000 and can apply annually or per incident. A higher deductible results in a lower monthly premium.
• Reimbursement rate: Also called coinsurance, this determines what percentage of covered vet bills your insurer will pay after you meet your deductible. Most plans reimburse 50% to 90%, though some use a benefit schedule that sets a fixed dollar amount for each procedure.
• Coverage limit: This is the maximum amount your insurer will pay. Limits can be per incident, annual or lifetime, ranging from $2,000 to unlimited payouts.

Ways to save on pet insurance

Many providers offer 5% to 10% multipet discounts when you insure more than one pet. Some also provide discounts for military service members and other special groups.

Is pet insurance worth it?

Yes, many pet owners feel the price of pet insurance is worth it for the peace of knowing they're insulated from surprise veterinary bills. If you’re concerned about your ability to pay for an emergency room visit or suspect your pet will need a lot of veterinary care, pet insurance is probably worth it.

It’s best to buy a policy when your pet is young and healthy since premiums are lowest and any preexisting illness or injury your pet has will not be covered. In extreme cases, pet insurance can also save your pet’s life when faced with extraordinary costs. For instance, the highest-paid claims in 2023 were $51,113 for a dog with lymphoma and $59,470 for a cat with intervertebral disc disorder.

However, pet insurance isn’t free and you’ll have to weigh the costs and benefits. If a $20 to $50 monthly premium would stretch your budget too far, you may choose to roll the dice and hope for no major incidents. Or, if your pet is older and already has a host of health concerns, you may be wasting your money since almost all plans exclude preexisting conditions.