What Pet Health Insurance Covers
There’s no standard coverage among insurers, and options vary depending on the type of plan you choose. You may see coverage offered for:
Unexpected injuries or mishapsTreatment of illnessesTesting and diagnosticsPrescription drugs, foods, and supplementsSurgical and other medical proceduresPreventive care, such as annual exams and medicines for flea, tick, and heartworm preventionBehavioral or alternative therapies
You often have the choice between accident-only and accident-and-illness policies.
How a Pet Insurance Policy Works
Pet health insurance policies share many similarities. In general, here’s what you can expect.
The Costs
Annual average premiums for dogs were about $828 for an accident-and-illness policy in 2021. It was about $427 for cats for the same type of policy. Wellness or preventive coverage is typically offered at an additional cost with an accident-and-illness policy. Your pricing may vary based on your:
LocationPlan selections for deductibles, limits, reimbursements, and other detailsPet’s age, breed, and genderDiscounts applied to the policy
Typically, you pay all veterinary costs upfront, then file a claim for covered items to be reimbursed.
How Premiums Are Paid
Most pet insurers accept debit or credit cards from major card issuers, and some also accept electronic bank payments. Premiums are usually automatically charged to a stored payment method either monthly or annually. Some insurers also charge a one-time administration fee when you enroll.
How to File Claims
With most insurers, you need to pay your veterinarian at the time of service and ask for an itemized invoice. Then you fill out a claim form and send it to the insurer with the invoice and proof of payment. You can often submit claims by email, postal mail, and fax, or through your online account or the insurer’s mobile app. Some insurers pay the vet directly if the veterinary office is set up to accept payments that way, but you most likely still need to submit a claim form.
How You’re Reimbursed
Providers vary with how long they take to review and process your claim. Some take as few as five days, others as long as 30. Once processing is complete, your insurer may send a check in the mail or direct deposit the sum into your account.
Policy Components
You may recognize several terms on your pet’s policy from your own health insurance policy:
Deductible: What you must pay before the insurer begins covering any billsReimbursement percentage: How much the insurer pays you back for a covered claim after the deductible is metCo-insurance (Co-pay): The percentage you pay on bills after you meet the deductibleLimit: The maximum the provider pays for claims; can be per-incident, annual, and lifetime limits
Here’s an example of how these components might play out in your pet’s policy: Say your cat has a gash on its leg and needs emergency care. After exams, bloodwork, and wound treatments, the bill comes to $1,500. Your policy has an annual $500 deductible and an 80% reimbursement percentage. Since this is your first claim for the policy year, you’re responsible for the first $500 to meet the deductible. Of the remaining $1,000 left, the insurer pays you $800 (80% reimbursement level). You already paid the remaining $200 (20% co-insurance) at the time of the visit. Your total out-of-pocket expense for this claim is $700.
Where to Get Pet Insurance
There are several companies offering pet health insurance, including:
24 PetWatch Protection ServicesAKC Pet InsuranceASPCA Pet Health InsuranceEmbrace Pet InsuranceFigo Pet InsuranceHealthy Paws Pet InsuranceLemonadeNationwide Pet InsurancePets Best InsuranceTrupanion
Nationwide and Lemonade are two of the few major insurers offering their own pet insurance. Many others, such as GEICO and USAA, partner with a pet-focused insurance company to provide plans to policyholders. You may get discounts by signing up for pet insurance through your existing insurance provider. For example, if you enroll in an Embrace plan through USAA, you could get up to 25% off your policy. While researching pet insurance providers, consider what coverage you want for your pet and talk to your vet about any conditions your furry friend is predisposed to. Compare plan coverages and exclusions. Also determine how much you want to spend on premiums, and your comfort level for deductibles and limits.
Deciding What’s Best for Your Pet
Many owners want to know if pet insurance pays off. Like any type of insurance, the answer depends on your circumstances and how often your pet will need the insurance. Regardless, both insurance and vet costs can be hard to afford. Keeping an eye on your pet’s health and safety is always the most important step. Premiums can add up to thousands of dollars over the lifespan of your pet, and you still have to deal with annual deductibles, limits, and exclusions. But it’s major illnesses that would otherwise break the bank that can make pet insurance an excellent buy. For instance, treatments for cancer can cost up to or even more than $7,500. As you weigh what’s best for your pet, consider your budget, savings, and other resources available to you. For some, the peace of mind pet insurance brings makes it invaluable. After all, you don’t want to be in a position where you can’t afford to care for your pet. But others may decide that alternatives like credit cards or vet-offered payment plans make costly pet bills affordable enough that insurance isn’t needed.
