Our pets are our family members, trusted confidants and companions who bring us joy and comfort. Research shows that our pets can help reduce stress, improve mood, and maintain cognitive function. This is certainly true for me with Biggie, my 10 year old hunting dog. As an insurance coverage and bad faith attorney, insurance is always on my mind; So, as part of helping Biggie live his happiest and healthiest life, it was important that he got the right insurance plan for him. When Biggie broke his leg a few years ago, he needed to have a new cast every week for 8 weeks, and that’s when I learned the value of pet insurance. But with so many options, how does one choose the best pet insurance policy? Your budget, level of coverage, and the age and health of your pet should factor into your decision.
The COVID-19 pandemic has increased the number of pets in American households, exacerbated the nationwide veterinary shortage, and increased the cost of veterinary care for our pets. According to APPA’s 2023-2024 National Pet Owners Survey, 66% of American households have at least one pet, which equates to 86.9 million households. The largest percentage of these families have dogs and cats, but other popular pets include birds, reptiles, fish, and other small animals. Most pet insurance companies only offer insurance for cats and dogs, but insurance for larger animals and exotic pets is becoming more available.
Depending on your area, routine veterinary care for your dog or cat can average $100 per visit, so if your animal is in good health and has no injuries, veterinary treatment can be relatively inexpensive. However, as most pet parents know, veterinary costs can add up quickly. Post-pandemic veterinary costs are on the rise, and average costs can vary dramatically:
- X-ray: $150-$500
- Broken leg: $750-$2000
- Wound Treatment: $400-$2,000
- Tooth extraction: $500-$2,500
- Poisoning: $1,000-$5,000
- Bowel obstruction: $2,000-$10,000
- Nightly observation: $600-$1,700
- Cataract surgery $2,500-$4,000
- ACL surgery $2,000-$5,000
- Cancer treatment: $3,000-$8,000
Most pet insurance plans have a common base of basic coverage, but there is a wide range of plan types, from accident-only coverage to fully comprehensive coverage. Pet insurance plans often offer customizable coverage options with different annual limits, deductibles, and reimbursements. Most pet insurance plans have a maximum enrollment age limit, usually around 14, but not all. Many plans offer many pet discounts. Unlike medical insurance for people, pet insurance typically doesn’t have doctor/veterinarian networks, so you can take your pet to the vet of your choice.
The premium depends on the coverage required, the species of animal and your geographical region. Another major factor that affects premiums is the age of your pet. As your pet ages, premiums increase significantly. The average cost of insuring a puppy for a medium-sized mixed breed dog can cost around $350 per year, but by the time the dog is 12 years old, it can reach $1,500 per year.
So what does pet insurance cover? Most pet insurance plans cover unexpected expenses from accidents or unforeseen events such as those listed above. Plans generally do not cover routine expenses related to health and preventive care, such as vaccinations, annual exams and dental cleanings; However, some plans offer these covers with health assurance for an additional premium and sub-limited coverage. Perhaps the most important thing to remember is that almost all pet insurance plans do not include coverage for pre-existing conditions that your pet had before the policy took effect. So when deciding whether pet insurance is right for you, be sure to consider the general health issues your pet may have in their lifetime and the major health issues they may have to ensure your pet is covered when they need it most.
Here are some resources to compare prices, review coverages, and read pet owner reviews of different plans.
Some people may find it helpful to talk to other pet parents about their experiences. Ultimately, whether pet insurance is right for you is a personal decision.