Pros and cons of pet insurance

What is pet insurance?

Pet health insurance is a policy that helps cover the expenses of veterinary care for your dog, cat or other pet. You pay a monthly premium, and the insurance company covers a portion of your veterinary costs according to your policy. Most pet insurance reimburses you after you've paid the vet bill.

Different levels of coverage are available. More comprehensive plans can cover accidents, illnesses, surgeries, hospitalizations, diagnostic tests, medications as well as routine wellness exams. More basic plans may only cover accidents. Some add-on options include coverage for alternative therapies, behavioral issues and even dental care.

Premiums range in cost and depend on the coverage level, deductible amount and reimbursement percentage.

Pet insurance also takes into account your pet's breed and age. All plans have limits like deductibles you must pay before coverage kicks in, as well as copays and annual or lifetime payout maximums. Preexisting conditions are typically excluded.

When Priyanka from California adopted her new puppy, she opted for pet insurance. “We took insurance when our pup was eight months old,” she said. “We added the preventive care since it covered part of the neuter surgery costs and vaccine costs.”

They saved money, but there were a few concerning gaps in coverage. “What we didn’t like,” Priyanka said, was that “vet fees are covered at an additional cost. In our area, the vet fees are half the bill so I wish we had covered this.”

» COMPARE: Pet insurance

Pros of pet insurance

Pet insurance can help cover the cost of expensive veterinary care for your furry friends. For a monthly premium, plans offer financial protection against unexpected medical bills. Insuring your pet means less stress about expenses if your pet becomes injured or sick.

Pet insurance plans charge a monthly premium, on average about $53 a month for dogs and $32 for cats, according to NAPHIA. A manageable monthly fee can help you budget your pet’s wellness care as well as navigate emergencies and costly procedures without breaking the bank.

With insurance, you can say yes to recommended treatments, diagnostic tests, surgery and medication without being overwhelmed by out-of-pocket costs. Having a pet insurance plan allows your pet to receive the comprehensive health care they need without cost being the deciding factor.

In summary, the top pros of pet insurance include the following:

Cons of pet insurance

Though pet insurance can help cover vet costs, it's not a cure-all. There are some downsides to consider, such as limits on payouts and pet age restrictions. Most policies set an annual or lifetime maximum amount they will pay out and have waiting periods before coverage kicks in. This means no conditions are covered for a set period of time after you first buy a pet insurance plan.

Pet insurance does not generally cover preexisting conditions.

Read the fine print on pet insurance plans carefully, as there may be copays, deductibles and certain situations that are excluded from coverage. The top cons for most pet insurance companies are as follows:

Is pet insurance worth it?

Deciding whether or not pet insurance is a worthwhile purchase depends on your personal situation, your pet’s needs and how much risk you want to take on. Pet insurance can be a lifesaver if your animal ever needs emergency treatment, and vet bills can easily run into thousands of dollars, sending you into pet debt if you don’t have insurance.

“Over the years, pet insurance has paid me more than I have paid them,” said Dr. Shannon Barrett, a licensed veterinarian in South Carolina. She runs a blog called Product Doctor that offers insights and reviews on various pet products. “It gives me the freedom to take my dog to a specialist if needed,” she said.

It is good to note that not everyone will benefit from pet insurance, though. Premium costs can add up over time if your pet never ends up needing emergency services or expensive procedures. For some pet owners, insurance premiums are simply too expensive compared to the potential benefit. Additionally, pet insurance may not be a fit if your pet has a preexisting condition.

Pet insurance can manage risk and offer peace of mind while also providing your furry companions with the best care possible. Depending on your financial situation and your pet’s needs, pet insurance may be a great option despite the premiums.

» COMPARE: Best pet insurance for older dogs

Bottom line

For many pet owners, the monthly cost of insurance is worth the ability to access quality medical care for their pet. Pet insurance can provide financial protection against unexpected expenses if your pet gets injured or sick.

“Many insurers offer a range of plans and coverage options, allowing pet owners to choose a plan that best fits their budget and their pet's needs,” Dr. Barrett said. “These plans range from emergency care to full coverage.” With the right plan, you don’t have to make decisions about your pet’s care based solely on what you can afford out-of-pocket.