Pet insurance
Is pet insurance worth it? How plans work and what to check
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- Most pet insurance reimburses you after you pay the vet, minus a deductible and your share of the bill.
- Conditions your pet had before coverage started are generally excluded, so enrolling while your pet is young and healthy matters.
- Pet insurance is mainly protection against a large, unexpected bill, not a way to save on routine care.
An emergency surgery or a long-term illness can cost far more than most people keep set aside for their pet. Pet insurance spreads that risk into a monthly premium. Whether it is worth it depends on your pet, your savings and how you would handle a large bill.
How reimbursement works
Unlike most human health insurance, pet insurance usually works on reimbursement. You pay the vet, submit a claim with the invoice, and the insurer pays you back for covered costs. Most plans let you use any licensed vet. Some insurers can pay the vet directly, which is worth asking about.
The three numbers that shape every plan
- Deductible: what you pay before the plan starts paying, usually per year. A higher deductible lowers the premium.
- Reimbursement rate: the share of covered costs the plan pays after the deductible, commonly 70%, 80% or 90%.
- Annual limit: the most the plan will pay in a year. Some plans offer unlimited options.
Example: with a $250 deductible, 80% reimbursement and a $2,000 covered bill, you pay the first $250, then the plan pays 80% of the remaining $1,750, which is $1,400. Your total cost is $600. This is an illustration only. Your plan's terms decide what is paid.
Types of coverage
| Plan type | What it covers |
|---|---|
| Accident only | Injuries such as broken bones, swallowed objects and bite wounds. Usually the lowest price. |
| Accident and illness | Accidents plus illnesses such as infections, cancer, allergies and chronic conditions that start after coverage. The most common choice. |
| Wellness add-on | Routine care such as vaccines, checkups and dental cleanings, often up to set amounts per item. |
What is usually not covered
- Pre-existing conditions. Anything that showed signs before coverage began or during the waiting period. Some insurers will cover a "curable" condition if it does not recur for a set time.
- Waiting periods. Plans usually have a short wait for accidents and a longer one for illnesses, and some have extra waits for specific conditions.
- Breeding, cosmetic and elective procedures.
- Routine care, unless you add a wellness plan.
Comparing pet insurance plans?
See pet insurance optionsIs it worth it for you?
Pet insurance tends to make the most sense if a sudden bill of a few thousand dollars would be hard to pay, if you would want to pursue treatment regardless of cost, or if your pet's breed is prone to costly conditions. It may make less sense if you can comfortably self-insure by setting aside money each month in a dedicated savings account.
Premiums often rise as pets age, so ask how pricing changes over time.
Questions to ask
- Is the deductible per year or per condition?
- Are exam fees covered for sick visits?
- How are hereditary and breed-specific conditions handled?
- How long do claims usually take to process?
- Is there a maximum enrollment age?