There are 393.3 million pets in the United States. Out of the 124.59 million households in the U.S., a whopping 84.6 million households own a pet. This means that 68% of households enjoy the company and affection of a little buddy, be it a furry friend, a scaly sidekick, or any kind of cuddly critter, big and small.
The most common kind of pets, unsurprisingly, are dogs and cats. Thirty-eight percent of the American population own one or more felines, while 48% have a canine best friend. That’s 89.7 million dogs and 94.2 million cats in the entire country.
While horse owners spend the most every year on average—roughly $13,600 in everything from grooming to food to boarding—cat and dog owners still pay well over $1,900–$2,800 in pet-related expenses every year.
Of these, between $800 and $1,200 are spent annually on visits to the veterinarian, be they for routine check-ups, emergency visits, or surgery. Just as the cost of healthcare has gone up for us humans, the cost of veterinary care has ballooned in the last three decades.
And yet, only around 1% of cats and dogs in the United States are covered by pet medical insurance.
Considering that 58% of dog and cat owners consider their pets to be on par with family members, it’s inexplicable why so few people decided to take out a policy that could very likely save their pet’s life without bankrupting owners’ finances in the process.
What is Pet Medical Insurance?
A pet medical insurance policy works much like a human health insurance policy in that it covers certain procedures and medications done or prescribed by veterinarians or veterinary professionals. Coverage includes emergency care, surgery, prescription medications, among other things.
Pet insurance isn’t a liability policy. As such, it won’t cover you if, for example, your dog bites the paperboy. It only covers your pet’s illnesses, injuries, exams, and accidents.
An important thing to keep in mind is that most pet insurance companies will only cover dogs and cats, as they are the most common fur babies out there. However, if you have a more exotic pet, keep reading, you still have options!
Another consideration is that the overwhelming majority of pet insurance policies don’t cover pre-existing conditions. If your cat has a bad right hip and has received treatment for it in the past, it’s likely your insurance company won’t pay out if it starts giving her trouble.
The average cost of a pet insurance policy is only $20-$50 a month, depending on the coverage selected and the type of pet covered, among other factors. The overall low cost makes pet medical insurance very accessible to most people, and the benefits of having a policy outweigh most of the cons.
Depending on which type of pet you own, its age, breed, and health history, as well as your own ability to pay out of pocket for certain treatments, you may find some types of policies are best for you than others.
Types of Pet Insurance Policies
Comprehensive
A comprehensive pet insurance policy will cover your pet if he gets sick (with a non-existing condition, that is) or if she has an accident that injures her. Treatments covered include emergency visits to the vet, surgical interventions, hospital stays, bloodwork and other diagnostic tests, along with medication, vitamins, or supplements prescribed by the veterinarian.
In general, a comprehensive policy is the most expensive kind of pet insurance, with an average monthly cost of $43. It’s also the one that will give you the most value. If you want to cover your pet for any eventuality, this is the type of policy you want to get.
Accident-Only
On the other hand, accident-only policies will only cover your pet if she is the victim of an accident and suffers an injury, if she’s poisoned, or if another animal attacks her. This type of policy will not cover your pet if she gets sick with cancer or hip dysplasia, for example, or any other kind of illness or condition. It only covers the costs of treating your pet’s injury.
Accident-only policies have an average cost of $15 per month. However, you should only buy one of these policies if your pet is very healthy or if you cannot afford a comprehensive policy but still want protection.
Wellness Insurance
Wellness policies only cover costs associated with preventative care. That means vaccines, periodic exams, nail clipping, microchipping, flea control, dental care, and heartworm prevention will all be covered, but that is all. If your pet gets sick or has an accident, the insurance company will not cover the claim and you will have to pay out of pocket.
Generally, we don’t recommend taking out a wellness-only policy on your pet. These types of routine costs are usually expected, which means you could budget for them every year the way you would for any other non-medical pet-related expense.
The real benefit of pet insurance is to help you pay for unexpected significant expenses that would cause true financial hardship.
Wellness policies cost between $10 to $20 per month, but since the average pet owner doesn’t go to the vet every single month, it makes more financial sense to put a little bit of money away every month for routine pet care.
Insurance Endorsements
Many insurance companies offer riders or endorsements that you could add to your main policy in order to expand your pet’s coverage.
Wellness coverage could be an endorsement if you add it to your comprehensive or accident-only policy. This is one way of making sure your pet insurance covers everything, from teeth brushings to bone fractures.
Another popular rider is aimed at breeders. Basic pet insurance policies do not cover injuries and illnesses associated with the practice of breeding cats and dogs. However, some companies offer a “breeding rider” to cover these causes. Keep in mind that this involves paying a higher premium, though many breeders will likely find it cost-effective.
A cancer rider is a popular choice among pet owners. If your pet gets sick with cancer, and it is not a previously diagnosed cancer that was treated in the past, almost every pet insurance company will cover it. However, there are reimbursement limits for cancer-related claims that can seriously reduce the amount of money you’ll get back for cancer treatment. Selecting a cancer rider can increase those reimbursement limits, so you spend less out of your own pocket for potentially life-saving care.
Pet insurance companies offer a variety of riders that can help you defray the costs of having a pet. Other optional coverages may include physical therapy, behavior modification, liability coverage, and burial fees.
Before selecting an additional coverage rider, make sure you fully understand the costs associated with adding a rider to your policy. Tally up the annual cost of your insurance with the rider and the cost of your expected veterinary expenses. This calculation can help give you an idea of whether the additional insurance premiums are a good value.
Exotic Pet Insurance
Though it sounds very exciting, exotic pet insurance actually applies to animals that are not cats or dogs. This type of insurance covers birds, fish, rabbits, gerbils, reptiles, amphibians, and other common pets.
According to Nationwide, exotic pet insurance has an average monthly cost of $9, while insurance for birds costs around $15.
The annual cost of veterinary care for birds is around $500, so a $15 comprehensive policy for birds can save you a lot of money in the long run.
How to Get the Best Deal on Pet Insurance
The insurance costs mentioned in this article are only averages taken from a variety of sources. The actual premium you will end up paying varies on a multitude of factors.
The breed of your pet can increase your premium. Larger animals tend to cost more to insure because vets tend to charge more for their care—conducting surgery on a great Dane can be more complicated than conducting surgery on a Chihuahua. Still, your pet’s genetics definitely come into play. For example, English Bulldogs are notorious for their predisposition for respiratory and bone problems. Hip dysplasia is one of the most common insurance claims for this breed. Predictably, Embrace Pet Insurance says its customers pay between $55 and $75 a month to insure their English bulldogs and, of course, since they tend to require more medical care—and more expensive procedures—the expense will probably pay for itself before long.
The age of your pet also reflects on your monthly cost. Insuring younger pets usually costs less money, since many common conditions tend to happen with age. This is why it’s so important to insure your pets as soon as possible.
Your pet’s spay/neuter status also affects your insurance bill. Spaying your cat means she’s less likely to suffer from ovarian cancer and uterine infections. Neutering your dog means testicular cancer will no longer be a problem. Therefore, insuring pets that have not been fixed will increase your premium.
Should You Get Pet Insurance?
Considering how inexpensive pet insurance is for the average pet owner and how costly it is to pay for proper medical care for your pet, it can be a really smart decision to purchase medical insurance for your pet. Pet insurance can be a huge safety net for you and your family.
By making sure you will always be able to afford the best treatment for your best friend, you can avoid making the agonizing decision of economic euthanasia.
We’ve evaluated over a dozen pet insurance companies and ranked the 10 Best Pet Insurance Companies of 2019. Take a look at our reviews and find the company that’s right for you.