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It’s 2024 and our pets are our babies and the term DINK-WAD (Dual Income. No Kids. With A Dog) is a trending topic. Where does our money go? - we are spending more on our pets. As a result, it’s no surprise that pet insurance is on the rise, and with this comes no shortage of options.
According to the North American Pet Health Insurance Association (NAPHIA), the average yearly cost for comprehensive pet insurance is $675.61 for dogs and $383.30 for cats. Since pet insurance doesn’t come cheap, you may be wondering, is pet insurance worth it? – and if so, which pet insurance is best?
When searching for the best pet insurance, it’s important to understand your pet’s individual needs to determine which coverage to go for. In this guide, we’ll teach you how to find the best pet insurance based on your pet’s specific needs and how to fit it into your budget.
Types of pet insurance
To understand pet insurance coverage, there are three main types of pet insurance policies you should familiarize yourself with before you decide which to buy.
Accident-only plans
Accident-only plans only cover medical treatment for accidents. They don’t cover medical visits or treatment related to illnesses. This is the most basic type of pet insurance plan, but also the most affordable.
This type of pet insurance is usually around 30% cheaper than the cost of an accident and illness insurance plan. If your pet is young and healthy, this might be all you need.
Accident and illness plans
Accident and illness plans are the most comprehensive type of pet insurance but also the most expensive. They cover medical treatment for illnesses that your pet develops as well as injuries arising from accidents.
These plans tend to be three times the cost of an accident-only plan, but you have more opportunities to take advantage of the coverage. They are well suited for pets of all ages but are especially important if your pet is aging.
Wellness plans for routine care
Wellness plans are typically sold as add-ons to an accident-only plan or an accident and illness plan. They cover common expenses you may have as a pet owner, such as vaccines, dental cleanings, spaying and neutering, and more. Hence, these plans are often referred to as preventative care plans or routine care plans.
Wellness plans are optional and not always necessary but they can come in handy if you want full coverage for routine care. However, if you consider yourself a bargain hunter, this type of plan may not be for you.
What does pet insurance cover?
Depending on the type of pet insurance plan you have, your policy can pay for services like medical treatment and diagnostic tests related to accidents and illnesses. This can include things like surgery, overnight vet stays, X-rays, blood tests, ultrasounds, blood work, and more.
Here’s a look at some examples of what each type of pet insurance plan can cover:
When opting for pet insurance there are three variables you will have to decide on when building a plan: your annual limit, your deductible amount and your reimbursement rate.
Each of these factors influence how much your policy will cover and how expensive your monthly or yearly premiums will be.
Annual limit
When you buy a pet insurance plan, you will have to choose an annual limit. This is the maximum amount you can claim for reimbursement per year. Most annual limit options offered by pet insurers range from $5,000 to unlimited. Some pet insurers like MetLife, may also offer lower options.
It’s important to remember that the higher the limit, the more expensive your policy will be. Look for an annual limit that will cover your pet’s anticipated needs each year.
For reference, here is a quick estimate for some of the most expensive procedures your pet may need:
Medical Condition
Estimated Cost of Treatment
Bladder/Urinary Tract Infection Treatment
$1,000
Heart Murmur Treatment
$1,200
Kidney Disease Treatment
$1,300
Tumor Removal
$300 - $1,600
Hernia Surgery
$700 - $2,500
Wound treatment
$800 - $2,500
Femoral Head Ostectomy Surgery (FHO)
$1,200 - $2,500
Diabetes Treatment
$1,600 - $3,000
Oxygen Therapy
$500 - $3,000
Stomach Foreign Object Removal
$3,000 - $3,250
Hospitalization
$600 - $3,500
Cancer Treatment
$4,000
Emergency Surgery
$1,500 - $5,000
Based on the figures above, a limit of $5,000 per year should be sufficient for most people.
Deductible level
You’ll need to choose a deductible amount when you build your policy. Your deductible is how much you must pay before your insurance kicks in and pays the rest. Typically, your deductible will be applied on a per-condition basis.
For instance, once you pay the deductible for allergy treatments, you won’t need to pay the deductible for following allergy-related visits. However, you would need to pay the deductible again if you visit to treat a wound, for example. It’s best to choose a deductible that you can afford to pay. The higher the deductible, the cheaper your monthly premiums will be, and vice versa. We recommend opting for either a $250 or a $500 deductible to keep your premium low.
Reimbursement rate
When choosing your pet insurance plan you’ll also have to choose how much you want to be reimbursed for. This is always a percentage of the total bill. While several providers offer 100% reimbursement options, it’s more common to find maximum reimbursement levels around 70%-80%.
Keep in mind that this is the amount that will be covered after you have met your deductible. A higher reimbursement rate means your monthly premium will be higher. It’s worth opting for a higher reimbursement rate if you can afford it, as reimbursement is the entire reason for buying pet insurance. We recommend opting for at least an 80% reimbursement rate.
Waiting periods
A waiting period is common for most pet insurance policies and refers to how long you must wait before the policy can take effect and pay for things. Most pet insurance providers have a waiting period of around 14 days for accidents and illnesses and around six months for orthopedic issues.
The length of a waiting period varies from provider to provider, and some companies offer shorter waiting periods for accidents. For example, MetLife offers near same-day coverage for accidents. It’s worth considering the waiting period for your coverage as it directly influences how soon you can use your insurance.
Most pet health insurance requires you to pay out-of-pocket first and then request reimbursement from the insurer. However, some companies offer direct-pay services and can pay the vet directly for you.
Each provider offering this option has a different method, but we found Paw Protect to be the easiest for pet owners. Opting for a provider with direct pay is particularly helpful for people on a tight budget or pet owners who don’t want to deal with reimbursements.
Familiarize yourself with the types of policies available.
Ensure you understand the difference between accident-only, accident and illness, and wellness plans. Evaluate the type of plan your pet will benefit from the most based on age, breed, health issues, and more.
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Experiment with different annual limits, reimbursement rates, and deductibles.
It’s important to understand how these variables influence the cost of your insurance policy so you can choose a plan that balances affordability and optimal coverage for your pet. You may want to play around with some sample quotes to see how each variable affects the overall cost.
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Read the fine print.
Many plans exclude certain health issues and breed-specific disorders, so it’s important to ensure you understand what may not be covered before buying a plan. Read over the exclusions, waiting periods, limits and more before deciding.
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Compare providers based on coverage and cost.
We recommend getting quotes from multiple insurers and comparing the coverage options and costs. You may want to use a comparison site to do this. Although price is an important factor, remember that cheap pet insurance policies are not necessarily good policies. A good plan will balance price and overall coverage.
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Read pet insurance reviews for the providers you are interested in.
When comparing providers, we recommend looking at pet insurance reviews left by real customers. Not only does this give you an idea of what each provider is good at, but it can also give you peace of mind to know what to look out for and help you understand which providers are backed by the masses (and which aren’t).
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Don’t forget to check for discounts.
Some pet insurers offer discounts if you insure more than one pet or are in the military. You may also get a better rate when you combine pet insurance with another type of policy offered through the provider.
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Where to find and buy pet insurance
Buying online is the easiest and most convenient way to find and buy pet insurance. You can buy through the company directly or use a comparison site. Below we cover the pros and cons of each method.
Buying pet insurance directly from the provider
You can sign up for pet insurance directly through the pet insurer by calling their helpline or visiting their website. This is a great way to buy directly from the source and ensure you get what you need.
Pros
You may be able to bundle your pet insurance with other types of insurance plans offered by the company which can result in overall savings.
Speaking to a representative is a good way to get all your questions answered before you buy the plan.
Cons
If you don’t research heavily and compare providers, you may not get the best deal.
You’ll have to put in extra effort to research and get quotes from many providers which can take a lot of time and effort.
Buying pet insurance through comparison sites
Comparison sites allow you to see multiple providers and prices all in one place. They are also a great way to save time and energy when looking for the right pet insurance policy. Many of these sites allow you to sign up directly through their website at no additional cost.
Pros
It’s easier to save money with comparison sites as you can see what each provider offers.
See plans side-by-side and compare between them.
Save you time and effort when looking for a provider as they are all in one place versus visiting individual websites.
Cons
You may not be able to sign up for other types of insurance coverage when using a comparison site.
Usually, comparison sites don’t offer a helpline to get individual support and your unique questions answered.
Best pet insurance comparison sites
If you don’t feel like investigating insurance providers, plans, and prices one at a time, it’s a good idea to review plans using a comparison site.
Here are a few of the main pet insurance comparison sites we use to view multiple plans in one go.
9 different pet insurance companies to choose from.
Medium to large insurance providers.
Helpful information guides and a full-service blog for more pet info.
Registered member of the North American Pet Health Insurance Association.
Which insurance company is best for pet insurance?
Which is the best pet insurance company depends on your individual needs. You can read our full guide to the best pet insurance here, but we’ve also compiled a list below of the top providers based on a few different scenarios.
There are a few times when pet insurance just doesn’t make financial sense. Whether or not this is your case depends on your individual circumstances.
Here are a few examples of when you may want to skip buying pet insurance:
You have solid savings and can pay for unexpected vet bills on your own.
Your pet is too old to get coverage or coverage becomes too expensive due to their age.
Your pet has one or more chronic pre-existing conditions that will be excluded from the insurance coverage.
You have multiple pets and the cost of insuring them all is too expensive.
If this is your case, you may want to consider creating an emergency fund for your pet instead where you can save bit-by-bit for an eventual bill.
Alternatives to pet insurance
If pet insurance isn’t for you, you may want to consider other financing options.
Pet savings accounts or emergency funds
If you prefer to skip the monthly payments for pet insurance and start an emergency fund instead, there are low-risk savings accounts that can offer high rates of return on the money you deposit. This can help you save faster for future pet bills and expenses and most allow access to your funds whenever you need them.
These days, savings accounts can offer up to 5.3% APY (growth) on your deposit. Here is a look at some of the best options right now.
Payment plans through your vet’s office
If you can’t make the full payment for your vet bill, you may be able to negotiate with your vet’s office to pay bit by bit similar to how you can set up a payment plan for human hospital bills. While this may not be the best option, it can help you out in a pinch.
Credit card for pet expenses
Paying by credit card is the most common method for paying vet bills in America, according to a new study from APPA. There are a few credit cards that offer perks for paying vet bills. One of the most famous ones is CareCredit, which is made specifically for paying for pet care. Credit cards have a higher level of risk associated with them, so it’s best to do your research before signing up.
Is pet insurance worth it?
Having pet insurance in a disaster could save you thousands of dollars in vet bills, in which case, pet insurance is worth it. However, the caveat of all types of insurance is that they are only worth it when it comes time to use them. If you never make a claim on your policy, then it feels like lost money.
That said, buying pet insurance earlier in the life of your pet can make it more worth the expense as this will ensure all new-occurring maladies are covered. Alternatively, pet insurance may not be worth it if your pet has pre-existing conditions, is so old that the policy becomes too expensive, or if you have the funds to pay for expensive vet bills on your own.
Check out our reviews of top pet insurance providers
The best level of pet insurance will depend on your pet’s individual needs. However, the highest level of coverage is provided by accident and illness plans as these cover accidental injuries as well as other health issues your pet may develop.
How to evaluate pet insurance?
To evaluate pet insurance, you’ll need to look at a range of factors to determine if it is right for you. These factors include cost, the type of coverage, the reimbursement process as well as customer support should you need it.
Pet insurance comparison sites are an easy way to compare pet insurance plans from different providers and their costs.
What age is best to get pet insurance?
Ideally, the best age to get pet insurance is when they’re young. Getting pet insurance earlier in your pet’s life ensures that any illnesses or accidents that occur are covered.
The comparison team is a proud partner of the LA Times and is a combination of expert freelance writers, editors, and contributors specially selected for their extensive experience writing and working in the financial industry. Every article written is thoroughly researched, edited, reviewed, and then fact-checked by a member of The LA Times Business Development staff before publication to ensure you receive accurate information.
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