Key points:
Pet insurance can pay for veterinary services covered by the policy, such as pet surgery, X-rays, and medications.
Most pet insurance works through reimbursement, which is when you pay your veterinary bills and then file a claim.
All pet insurance policies have at least one waiting period before coverage.
In many families, pets are families. And, in the case of illness or accident, health insurance covers the care of family members, and many pet owners are turning to pet insurance to provide the same sense of security for unexpected pet medical expenses.
According to the North American Pet Health Insurance Association, only about 4% of dogs and less than 1% of cats are covered by pet insurance. Understanding how pet insurance works can help you make sure it is a wise purchase for a dog or cat.
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Pet insurance reimburse you for certain types of medical care, medications, and other unexpected pet care costs. Most pet insurance companies only offer coverage for dogs and cats. Typically, pet insurers do not cover established conditions, meaning issues that begin before purchasing a policy or during the policy waiting period.
Pet insurance companies generally offer several types of policies and various repayment methods to choose from. Usually, if you have pet insurance and your pet is injured or uncomfortable, you can take it to any licensed veterinarian or emergency clinic and file a claim. Unless your pet insurance company provides a system for direct payment to the veterinarian, you will wait for the amount of your policy to be repaid by the pet insurance company.
Many pet insurance companies offer two main types of policies and an optional additive for routine health care.
The coverage of accidents is limited to the treatment of accidents, such as falls. These policies can cover severe cuts and fractures. They also work if your pets are devouring things they shouldn't have, including foreign objects or potentially toxic substances.
Accident and disease coverage is a more comprehensive method of pet insurance that pays you back for pet accidents such as ruptured paws, diseases (such as skin infections), diseases (such as cancer), and genetic and congenital conditions. All policies have exclusions for certain treatments and conditions, so be sure to read the exclusions section of the policy.
Health plans are not technically insured, but are usually used as supplementary insurance for pet insurance policies. Health care programs often provide specific amounts for preventive health care services for pets, such as immunization, dental cleaning, and routine annual exams.
When purchasing pet insurance, an annual limit is usually chosen, deductible and reimbursement percentages (or co-insurance). When you get a pet insurance quote, you will be able to adjust these reimbursement levels to see how they affect monthly premiums.
The highest annual expenditure on pet insurance is the most that the policy will pay during the policy year. If your pet’s veterinary fee exceeds the maximum limit for that year, you must pay any other bills from your own pocket. These restrictions don't usually overturn, so your maximum annual spending resets when a new policy period begins.
Annual coverage can be as low as $2,000 or up to unlimited.
Pet insurance has three potential deductible types:
Annual deductible You are required to pay a certain amount to your veterinary bill annually before coverage is covered. Most pet insurance policies have annual deductibles.
No deduction You are required to pay a deductible each time you visit your veterinarian’s new conditions.
Lifetime deductible per condition You are required to pay a deductible only once for each new condition of your pet's life. For example, Trupanion has a per-conditional deduction for life.
The percentage of reimbursement (as with co-insurance) is that your insurer will pay for the eligible medical expenses of your pet once any deductions are met. In some cases, reimbursement will be calculated first and then your deductible will be raised from the remaining bill. Most pet insurance companies have a reimbursement rate of 70%, 80%, or 90%.
For example, suppose your pet has accident and disease coverage, and the annual deduction is $300, and 90% of the reimbursement is reimbursed. Your dog suffers from a severe ear infection that requires multiple visits and medication to reach $750. If you haven't paid any deductible yet, you can pay $300 from your pocket and your pet insurance will reimburse you for $405 (90% of the remaining $450 bill).
Choosing a higher claim repayment percentage will translate into higher insurance premiums. Some pet insurance companies may choose a choice of deductible and reimbursement rates based on the age and health restrictions of their pets.
Pet insurance covers medically necessary treatments, but insurance varies by policy. The services and treatments covered may include:
Genetic and congenital conditions
X-ray, ultrasound and CT scans
cancer
Dental accident
Prescription medicine
Behavioral therapy for problems such as separation anxiety
Alternative therapies such as acupuncture, hydrotherapy and chiropractic
Regardless of what type of coverage you have, pet insurance generally does not cover anything considered to be present in a disease, elective procedure, or experimental treatment. Here is a snapshot of other expenses that are usually excluded in pet insurance:
Involuntary behavior injury
Harm and diseases related to reproduction
Boarding and transportation costs
Anal gland expression
Conditions related to racing, such as sled racing
spay or sterilization
Some pet insurance companies have existing minimum and maximum age restrictions for purchasing new policies. Usually, puppies or kittens need to be at least 8 weeks old to cover, although some pet insurance companies such as AKC, Metropolitan Life and Trupanion do not have minimum age restrictions.
While you may have heard that your dog or cat is “too old” to get pet insurance, quite a few pet insurers do not have age cap restrictions but may only offer reduced coverage.
Some (but not all) pet insurers require a first-time veterinary visit before or shortly after the policy is purchased. For example, hug pet insurance requires exams by a veterinarian on the policy start date or 12 months before 14 days.
In other cases, pet insurance companies will want to see their pet's medical records, but no exam is required.
Unfortunately, pet insurance is not like car insurance. You can't just roll up and get coverage right away. All pet insurance policies have some kind of waiting period, such as:
For accident coverage, you may have to wait one to 15 days before you can start.
For disease coverage, the waiting period is usually 14 days.
Waiting time can be extended longer (usually up to six months) to resolve cruciate ligament or other conditions.
There are usually no waiting periods for health plans.
According to Naphia's 2023 report, the average annual extra cost for cats is $116.11 and the average premium for dogs is $204.16. For accidents and illness coverage, the average premium for cats is above $383.30 and for dogs is $675.61. Adding a health plan to the coverage of accidents and diseases has increased the average annual premium for cats to $625.99 and the average premium for dogs has increased by $1,263.39.
In addition to the type of insurance you choose, these factors can also affect pet insurance quotes:
Place: This is based on your local veterinary care expenses.
Pet Breeds: Breeds can affect health and life expectancy and therefore pet insurance premiums.
Pet Gender: Female pets can be cheaper.
Pet size: Larger varieties are more expensive because they tend to make more claims.
Pet Age: Older pets are more likely to develop chronic diseases or diseases.
Last but not least, the cost of pet insurance also depends on the maximum limit you choose, the deductions, and the reimbursement rate you choose.
Fortunately, many pet insurance companies offer 5% or 10% multi-PET discounts.
Some pet insurance companies offer military discounts.
Embrace’s Healthy Pet Discount Program offers 5% off for each pet in the first year when you don’t have any pet insurance claims and 10% off for the second year. Metlife has a similar program called “Healthy Pet Incentive” that reduces your deductible every year without claiming.
Pet insurance claims are very simple. In most cases, you will file a claim after your veterinarian pays for medical expenses. Usually, you need to submit a proof of payment, a detailed invoice, and answer some questions about that claim.
Pet insurance companies will send reimbursement payments to your checking account, sometimes directly to your checking account.
The window to file a claim is usually very generous. From the date of treatment, service or office visit, you will have 90 to 270 days to file a claim with your pet insurance company.
If you want to speed up reimbursement, most pet insurance companies recommend using direct deposit options linked to a bank account.
If the pet veterinary bill is not ideal, check out the pet insurance company that can pay the veterinary directly. Pet insurance companies that offer direct veterinary wages include:
ASPCA
Healthy paws
The best pet
Tuyania
Even if your pet insurance company doesn't advertise it to pay the veterinarian directly, it's worth asking ahead of time if you know you have a large number of veterinary bills, such as surgery. Some pet insurance companies will pay veterinarians directly on a case-by-case basis to pay overly expensive veterinary bills.
You can cancel your pet insurance policy by contacting the company directly. Usually, you will receive the above refund for the remaining policy period. You can also wait until the policy deadline is over and notify the insurance company that you will not renew.
Some insurers need to notify in writing, while others will process cancellation requests by phone or online. Check out your policy and insurer’s website for more details, including any information about potential fees for early cancellation.
Free-looking period features like money-back guarantee. Within a short time after purchasing a pet insurance policy, you can cancel and receive a full refund as long as you do not file any claims.
Although the short-term free mutual pet insurance is 10 days, the appearance of no pet insurance is usually 30 days.
Determine whether pet insurance is worth it all depends on your financial situation, pets, and risk tolerance.
After you get a pet insurance quote, calculate the annual cost of pet insurance over the past few years. The potential cost of a large veterinary bill is then calculated. Consult with your veterinarian about your pet breed that can expect from the veterinary expenses. For example, this breed is prone to certain chronic diseases?
Compare future pet insurance payments to the potential costs of large bills. If you want to get a financial safety net for accidental veterinary bills, pet insurance is worth it.
learn more: How can pet insurance save money in the long run
Fortunately, pet insurance can’t work based on the provider network. You can file bill claims for any licensed veterinarian in the United States, and some pet insurance companies also cover other countries such as Canada.
Most pet insurance companies can only provide insurance for dogs and cats. Metropolitan life and exotic pets nationwide, such as lizards and birds.
Pet insurance costs (including premiums) are generally not taxable, but there are some exceptions. If your pet is a service or emotional support animal, or you are raising a pet for an adoptive tissue of 501(c)(3), then you may be able to write off certain fees.
If you use certain types of work or performance animals for business, you can get tax deductions, but you need to carefully document their income and expenses to submit to the IRS.
Amy Danise edited this article.