Your pets are part of your family, and planning for unexpected medical expenses is an important part of responsible pet ownership. You never know when your dog or cat will have an accident, eat something they shouldn’t, or become ill, and pet insurance is an excellent way to prepare for these unexpected costs.
The best thing about having pet insurance is that you won’t have to make decisions about your pet’s care based on cost, but you’ll have more freedom to make decisions based on your vet’s advice.
How It Works
More and more pet owners are learning the benefits of pet insurance, and some employers even offer it as a benefit. While the best pet health insurance policies cover most accidents or illnesses, it doesn’t work exactly like human health insurance, so it’s important to have a general idea of what to expect when it’s time to file a claim.
- Reimbursement
One thing that pet owners need to know about pet insurance is that the companies don’t pay the vet directly. Instead, the pet owner pays the bill and is then reimbursed. This could be problematic if a pet owner is unable to pay the bill upfront, so it’s something to keep in mind.
Typically, policy holders receive reimbursement within 10 to 14 days after submitting all the needed receipts, but this varies by the insurance company.
Knowing you may have to pay a big bill upfront while waiting for reimbursement means you’ll need to have a plan in place for how you’ll handle that expense should the need arise. Still, knowing you’ll be reimbursed makes it easier to dip into savings or to use credit.
If you have a long-term relationship with your vet, they may be willing to let you pay once you get the money from the insurance company. Another option is to apply for Care Credit, which offers zero interest for 6, 12, or 18 months, so you can pay with that and then pay it off with zero interest once you’re reimbursed.
- Deductible/Percentage Covers
Most pet insurance companies have a deductible between $250 and $1000. A few offer deductibles as low as $100. Many offer pet owners the option to choose their deductible, which allows them to customize their policy and choose a lower or higher monthly premium. If you can keep $1,000 on hand to pay the higher deductible, you can enjoy significant savings on your monthly premium.
Over the last decade or so, pet insurance has been simplified. Instead of complicated payment schedules, most insurance companies now have simpler terms and pay a set percentage of all approved claims, minus a deductible.
- Is Preapproval Required?
In most cases, no. As mentioned above, pet insurance companies have worked towards simplifying the process, so most do not require any pre-approval. You just visit your vet as normal and submit the invoices for reimbursement.
- What Does It Cover?
Exactly what is covered varies by company. The top companies minimize the exclusions to just pre-existing conditions. Some companies allow treatment for pre-existing conditions as long as it’s been at least a year or two (depending on the company) since they had symptoms from the condition.
Some companies exclude breed-specific conditions, such as hip dysplasia in German Shepherds.
It’s important to read all the fine print of your policy, so you’ll know exactly what is and is not covered by your plan.
How Much Does It Cost?
The cost of pet insurance varies widely based on several factors, such as:
- The age of the pet
- Where you live
- Breed of pet
- Selected deductible/co-insurance
Since the prices vary so much, it’s difficult to give an average. Policies cost anywhere from $25 a month to a few hundred. The only way to get an accurate idea is to get quotes from a few top-rated companies.
Should You Include Routine Care?
One way to save on your monthly premiums is by not including routine care, such as vaccines. These are expenses you know are coming every year, so it’s easier to budget for them. Instead, use the insurance for bigger, unexpected costs.
How to Choose a Pet Insurance Company
There are many things to consider when choosing a pet insurance plan, and price isn’t always the most important consideration. If a company is going to give you a hassle every time you file a claim, then it’s not worth saving $20 or $30 a month to use them.
You also need to look closely at any exclusions, how the reimbursement process works, and their overall customer reviews. Below are examples of highly rated pet insurance companies. The one that is the best choice for you may not be the best choice for someone else, but these companies are an excellent place to start gathering quotes.
- Healthy Paws
- Pets Best
- Embrace
- Trupanion
- ASPCA
A quality pet insurance policy gives your pet access to the best medical care while minimizing the financial burden of such expenses. It helps pet owners be ready for the unexpected.
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