In a perfect world, our pets would live forever without ever getting sick or injured. But this isn’t a perfect world, and unfortunately, just like humans, pets can develop health problems. But while we have health insurance to help us manage the ever-rising costs of healthcare, a lot of pet parents overlook the fact that veterinary care is also skyrocketing. This is something that most people don’t put much thought on because most pets only visit their veterinarians once or twice a year when things are okay.
But what happens on the off chance that your pet gets sick or injured and surgery is needed, and the procedure is going to cost several thousand dollars? Will you be able to afford paying for your pet’s surgery?
If this scenario worries you, then you may want to think about purchasing pet insurance. Like health insurance, pet insurance can help cover the cost of your pet’s medical care and reimburse you for expenses like cancer treatment, emergency care, prescription medications, and surgery.
But pet insurance isn’t cheap either. So, this leaves many pet parents wondering – is pet insurance actually worth it? This post will give you more information about pet insurance, so you can make the most informed decision for your pet’s healthcare needs.
How Much is Pet Insurance?
Pet insurance is a massive industry and it’s growing every year. In 2022, there were more than 4.8 million dogs and cats that were covered by pet insurance in the United States. This was an increase of 22% from the previous year. And since 2019, the number of insured cats and dogs in the U.S. has nearly doubled.
According to the North American Pet Health Insurance Association (NAPHIA), the average annual cost for an accident and illness policy in 2022 was about $640 for dogs and $387 for cats, or roughly $53 a month for dogs and $32 a month for cats. An accident-only policy is less comprehensive, so it’s less expensive with the average annual policy costing $201 for dogs and $122 for cats.
Pet Insurance: What’s Covered and What’s Not?
Pet insurance can be a godsend if your pet requires a surgery or some other expensive treatment, but even with insurance, it’s important to understand that your insurance company likely won’t reimburse you for every dollar you spend at the vet.
This is because like most of your other insurance policies, pet insurance comes with an annual deductible. This is the amount you’re responsible for paying before the insurance company starts paying. And in many cases, even after you meet your deductible, most plans will only pay out a certain percentage of your vet bill, usually anywhere between 70% and 90%. There may even be an annual maximum payout cap on your policy.
When you take into consideration what pet insurance covers and what it doesn’t cover, things can get even more complex. For instance, most pet insurance policies don’t cover annual checkups, vaccinations, and teeth cleaning. Most won’t cover spay or neuter surgery either. To have these services covered, you would need to purchase a rider for wellness and preventative care.
Pet insurance is designed for unexpected or emergency veterinary expenses, not the routine costs that come with pet ownership. It is also designed only for new conditions. So, if your pet has a pre-existing health condition, then your insurance won’t likely cover it.
Additional Pet Insurance Considerations
For most, if not all pet insurance companies, the monthly premiums can vary significantly based on your pet’s age and breed. Plus, the cost of veterinary care where you live can also affect your rate.
And something that many pet insurance companies fail to promote with much transparency in their agreements is that their rates will increase as your pet gets older and becomes naturally more prone to health issues.
For many pet parents with older pets there can come a time when their pet insurance policies just become too expensive, and they’re left with no other choice to cancel their coverage just when their pets start needing more substantial healthcare services the most.
Another thing to keep in mind is that if you purchase insurance and your pet starts being treated for a new condition, should you let your policy lapse and then restart it, then the insurance company will consider your pet’s condition as pre-existing and therefore they may refuse to cover it.
In Conclusion – Is Pet Insurance Actually Worth It?
Pet insurance is not without its fair share of controversial coverage policies, but because the cost of emergency veterinary care is rising so quickly, it can be easy to see why someone might want to purchase it. But because of things like age-related price hikes and no coverage for pre-existing conditions, pet insurance may be more valuable to pet parents with young and healthy pets than those who already have older pets with one or more chronic conditions.
If pet insurance doesn’t sound like an ideal solution to you, but you still lack the finances to cover an expensive pet emergency, then you do have other options. For instance, instead of making an expensive monthly payment to an insurance company, you can take a portion of the amount and deposit it into a high-yield savings account created specifically to cover vet costs. Of course, the downside to this approach is that it will take a while for you to save a sizable amount.
Another option is to set up a crowdfunding campaign or search online for charitable organizations that can help you afford to pay for your pet’s emergency care. Or, you can always ask the veterinary hospital if they offer a payment plan as many do.