Pet Insurance 101 – The Ultimate Guide

Are you new to Pet Insurance or have you just got a new pet and are exploring new ways to care for your beloved friend? Fear not because we have the ultimate guide on pet insurance for beginners.

What is Pet Insurance?

Similar to human health insurance, pet insurance covers the cost of medical care. It is designed to cover unexpected expenses, so it might not pay for routine care or pre-existing conditions your pet had before you bought the policy.

What Do “Deductible,” “Reimbursement Rate,” and “Limits” Mean?

Insurance terminology can be confusing, but it’s essential to understand these terms to compare coverage and costs effectively.

The deductible is the portion of the veterinary bill you are responsible for paying before your plan’s reimbursement starts. Most pet insurance companies use an annual deductible. Some insurers offer a per-incident deductible, meaning if the same injury occurs more than once in future years, the deductible will no longer apply.

Reimbursement Rate is the percentage a pet insurance company pays you back for the cost of care. The most comprehensive pet health coverage will reimburse 80% to 100% of your total vet bill (after your deductible is met).

Limits are crucial to consider when choosing a plan, especially as you anticipate the type and amount of care your pets might need based on their ages and conditions:

• Per-incident limits cap the amount you can be reimbursed for a single illness or accident. For example, if exam fees, surgery, lab tests, medications, and follow-up care total $5,000 and your limit is $2,000, you are responsible for more than half of the bill.
• Annual limits cap how much you can be reimbursed within a 12-month period. Once you hit your plan’s annual reimbursement limit, you are responsible for paying until your coverage resets for the year.

Finally, your premium is the fee you must pay each month (or year) to keep your insurance policy active. A higher monthly premium generally means you’re paying for more coverage, so you shouldn’t always choose the plan with the lowest premium. However, a plan with a low premium might be your best option if you’re on a tight budget.

PRO TIP: If you need to save on monthly costs (your premium), you can customize your plan by lowering the reimbursement rate, reducing the limit, or raising the deductible.

What Type of Pet Insurance Should I Get?

There are three primary types of pet insurance plans:

• Accident and Illness: This is the most common type of pet insurance and covers treatment for both illnesses and accidental injuries.
• Accident-Only: These plans are generally more affordable. They will cover incidents like if your pet swallows an object or gets hit by a car, but not for illnesses such as diabetes or arthritis.
• Wellness or Preventive Care: This type of coverage is typically an add-on to the above policies. It covers routine care, including wellness visits, vaccinations, and other preventive measures.

How Much Does Pet Insurance Cost?

According to 2022 data from the North American Pet Health Insurance Association, the average cost of an accident and illness policy in the U.S. is $640 annually for dogs and $387 annually for cats, which breaks down to approximately $53 per month for dogs and $32 per month for cats.

For an accident-only policy, the average annual cost is $201 for dogs (around $17 per month) and $122 for cats (around $10 per month). But these prices may vary depending on multiple factors such as the breed and age of your dog, among others. You can have a more accurate pricing by clicking on the button below (no strings attached):

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What Does Pet Insurance Actually Cover?

The top pet insurance plans can offer extensive coverage for the most costly health treatments and diagnostics.

However, depending on your insurance plan, your policy might not cover every condition or expense your pet incurs. This is why it’s crucial to find a plan that covers your pet’s breed-specific health risks.

Pet Insurance Can Cover:

• Unexpected injuries or accidents (such as foreign object ingestion, broken bones, and more)
• Unexpected illnesses (such as cancer, glaucoma, hip dysplasia, parvovirus, and more)
• Surgery (including cruciate ligament tears, cataracts, and more)
• Medication
• Tests or diagnostics (such as x-rays, blood tests, MRIs, and more)
• Emergency exam fees

Generally, most pet insurance plans will cover expenses in the above categories as long as they are not related to a pre-existing condition. The specifics will depend on the type of coverage (see the chart below) and the provider you choose.

Some Pet Insurance Plans Also Cover:

• Alternative therapies
• Behavioral modification
• Hospital boarding
• Lost pet advertising/reward
• Nursing/Whelping
• Chiropractic care
• Acupuncture
• Hydrotherapy

Pet Insurance Does Not Cover:

• Pre-existing conditions
• Routine care or wellness exams
• Preventative care
• Spaying/Neutering
• Vaccinations
• Exclusions

NOTE: Although no pet insurance providers cover pre-existing conditions, some providers will cover curable conditions after a specific waiting period with no recurring symptoms. Additionally, pets with a pre-existing condition are still eligible for insurance; however, their coverage would only exclude the specific condition that already exists.

Compare Pet Insurance Companies

Pet insurance can help manage the unforeseen medical costs that occasionally come with owning a pet. Here are some options available in the market that we can actually help you get and manage!

1. Embrace
   • Various options to tailor your coverage and monthly premium
   • Reimbursement rates up to 90%
   • Covers treatable pre-existing conditions
   • Discounts available, including 10% multi-pet discount
2. Healthy Paws
   • Simplified plan that covers accidents and illnesses with no annual cap
   • Most claims are processed within 48 hours
   • Deductibles starting at $100
3. Spot
   • Covers unique items: prescription diets, microchipping, and behavioral therapy
   • Offers preventative care and screening plans
   • No age limit for older pet coverage
   • 10% multi-pet discount
4. ASPCA
   • Generous coverage choices, including wellness and accident-only plans
   • Shorter waiting periods than many other insurers
   • 10% discount for veterinarians and multiple pets
   • Includes coverage for cats, dogs, and horses
5. Fetch
   • Perfect if you seek extensive coverage with high reimbursement
   • Covers conditions and treatments other insurers might not, such as cancer, acupuncture, and behavioral therapy
   • Provides $1,000 in boarding fees if the owner is hospitalized
   • Pays up to $1,000 for virtual veterinary consultations
6. Pumpkin
   • 0% discount on additional pets you insure
   • Covers dental diseases and some pre-existing conditions
   • Annual limits range from $7,000 to unlimited
7. MetLife
   • In most states, your deductible decreases each year without a claim
   • Covers what others don’t: alternative treatments and holistic care
   • No waiting period for accident coverage
   • 24/7 vet chat service available

Would you like to know what the best choice for your dog would be? Click on the button below and analyze your pet’s requirements.

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