Tips for Finding the Best Pet Insurance Plan

Pets bring you joy, companionship…and bills. Some of those bills, like food, are predictable enough to add to your household budget. Others, like pet health care costs, are not. Fortunately, you can partially manage those unexpected costs with pet health insurance. 

What is pet insurance? 

Pet insurance is a contract with an insurance provider that helps you pay vet bills. Most pet insurance plans work on a reimbursement basis. This means you pay your vet first, then your provider reimburses you later for approved expenses. 

What does pet insurance cover? 

Most pet insurance plans cover new, unexpected accidents and illnesses, like: 

• Broken bones

• Lacerations

• Digestive upset 

• Dental trauma 

• Cancer 

Many -- but not all -- pet plans will reimburse you for any exam fees, diagnostics, and most treatment costs related to covered accidents and illnesses. A few providers exclude the exam fees and certain types of treatments, such as massage, supplements, or prescription food.

What doesn't pet insurance cover? 

Accident-and-illness pet plans do not cover preventative services including routine exams, vaccinations, or dental cleanings. You can get insurance for services, but it's usually an upgrade to an accident-and-illness policy. 

Pet insurance also doesn't cover pre-existing conditions, breeding-related expenses, and grooming. 

There are other conditions that some providers cover and others exclude. Degenerative conditions, like hip dysplasia, and preventable illnesses, like heartworm, are in that group. 

What does pet insurance cost?

Monthly pet insurance premiums range from less than $10 to more than $80. Generally, you can expect: 

• Cat insurance is less expensive to insure than dog insurance. 

• Senior pets are more expensive to insure than younger pets.

• Large dog breeds are more expensive to insure. 

• Dog and cat breeds with short lifespans are more expensive to insure. 

Is pet insurance worth it? 

Pet insurance, like any other insurance plan, doesn't prove its value you until you file a claim. For that reason, it's notoriously difficult to decide upfront if pet insurance is worth it.

It may help to think of pet insurance as a budgeting tool. Chances are, over the life of a policy, you will pay more in premiums than you receive back in reimbursements. On the surface, that doesn't sound like a good deal. However, it's a reasonable trade-off if you can't easily absorb big, unexpected costs. 

According to health financing company CareCredit, an emergency pet surgery can cost $1,600 to $10,000.¹ If a sudden expense of that size would put you in financial turmoil, pet insurance may be a good fit for you. With insurance, you'd pay a more tolerable monthly premium in exchange for help with those big, emergency bills.  

Having the insurance in place also makes care decisions easier. If your pet insurance pays 90% of cancer treatment costs, for example, maybe you won't have to choose between your pet's health and your finances. 

Preventative care add-ons 

Preventative care upgrades are, fortunately, easier to evaluate. Preventative plans often have a set reimbursement rate by service. An example would be a $50 reimbursement for your pet's annual physical. Know that these amounts will only partially cover the cost of the related service.  

You can estimate the value of preventative coverage by reviewing the program's covered services and reimbursement rates. Identify which services you plan to use regularly and total those reimbursement amounts. Compare that total to the maximum annual payout. The lesser of these two numbers is the approximate value you'll get from the policy in one year.

The next step is to compare that approximate value to the annual premiums. If the premium is more than your expected value, then this coverage doesn't really make sense. Instead of paying the insurance company, put the premium amount into a savings account. That way, you'll have some funds on hand when your pet needs preventative care.

What questions should I ask before I buy pet insurance? 

In insurance, fine print can surprise you at the worst possible times. Use these questions to uncover some of the trickier aspects of pet insurance: 

• What is your waiting period? A waiting period is a specified timeframe after your policy effective date. Your pet insurance won't cover any conditions that arise during the waiting period. Pet insurance plans commonly have 14-day waiting periods. 

• Do you have age limitations? Some providers will not create new policies for pets over a certain age. 

• Do you cancel coverage when my pet gets older? Most providers will not cancel coverage as your pet gets older, but it's useful to verify this.

• Do you require a recent vet exam? To get coverage, you may need to submit a recent vet exam and 12 months or more of vet records. 

• Do you require proof of vaccinations or regular dental check-ups? Some providers only cover preventable disease if your pet is vaccinated. And, similarly, you may only get coverage for dental illness or trauma if your pet has had regular dental care.  

• Do you have breed-specific exclusions? If you have a purebred, these exclusions could dramatically reduce the value you'll get from that policy. These exclusions can be extensive. As an example, see Nationwide's breed-related exclusions. 

How pet insurance providers compare 

Shopping for pet insurance can be confusing. You'll recognize the feeling if you've ever tried to compare cell phone plans across providers. The core problem is that your choices are often not comparable. 

Each provider offers a slightly different set of inclusions and exclusions, and the quotes default to different deductibles, reimbursement percentages, and annual payout caps. Some plans provide bare minimum coverage, with the option to expand that coverage for a higher fee. 

As a result, the premiums are all over the place -- ranging from less than you spend on coffee each month up to the equivalent of your cable bill. Not even a spreadsheet can clearly define which plan delivers the most value for the price. 

So what's a pet owner to do? To start, review our comparison of major pet insurance providers. That will give you a quick education on how pet insurance works. You'll also see how these providers measure up on the conditions and expense types they cover.

ASPCA Pet Insurance Review 

To dive deeper into the specifics of one provider, see our review of ASPCA pet insurance. Even if you're not considering ASPCA pet insurance, the review is detailed enough to help clarify your own coverage needs. 

You'll learn about ASPCA pet insurance coverage and exclusions, plus tricky fine print traps like the waiting period. The review also includes sample rates for dog and cat insurance. You'll also meet the companies behind ASPCA pet insurance, and those names may surprise you.