How does pet insurance work? (2024)

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In a nutshell

For a small monthly fee, you can purchase pet insurance to cover medical costs for your dog, cat or other pet.

  • Pet insurance typically requires you to save your vet bills for covered services and submit claims for reimbursement from your insurance provider.
  • Depending on your plan, coverage can be limited to emergency visits or extend to preventive care.
  • Pet insurance will cost you about $10 to $53 per month, though it varies by pet, policy and provider.

FEATURED PARTNER

FEATURED PARTNER

Lemonade Pet Insurance

Usually covered

Diagnostics, injury from accident, cancer, flea and heartworm prevention, allergy medicine, arthritis medicine

Annual coverage limits

$5,000 to $100,000

Reimbursement rates

70% to 90%

Deductibles (annual)

$100, $250, $500, or $750

What is pet insurance?

Pets are treasured family friends who need lots of care and attention. Medical care is one important part of that, including preventive visits, regular veterinarian visits and emergency care.

Unfortunately, emergency vet visits don’t come cheap. In fact, MetLife estimates an emergency vet visit for a dog could run between $150 and $5,000. For a cat, it can cost between $150 and $3,000. Without ample savings for this kind of situation, just one emergency could end up breaking the bank.

Enter pet insurance: a health plan you can pay into every month to protect your furry friend in case a covered medical incident arises. Just like human health insurance, pet insurance covers certain medical procedures, including accidents, illnesses or preventive care, depending on the plan. Pet insurance works just like other insurance plans: It has deductibles, coverage limits and other specifications that vary by provider.

How does pet insurance work?

Pet insurance works similarly to health insurance for humans, covering the cost of designated procedures as outlined in your policy. Unlike health insurance, however, pet insurance is almost exclusively paid via reimbursements, rather than veterinary offices billing the insurance company directly. That means you’ll have to cover the bill for your pet’s vet visit and file a claim to get the covered amount reimbursed.

Pet insurance comes with a few key terms you’ll need to understand, including the following:

  • Premium: Your pet insurance premium — or the amount you pay each month for coverage — will vary depending on different factors, including your pet’s age and health history, the instances you want covered, your deductible and more.
  • Deductible: Pet insurance plans come with a deductible, which is an amount of money you are responsible for paying before your policy kicks in.
  • Reimbursement percentage: After you meet your deductible, your pet insurance plan will cover a percentage of the remaining bill, which usually ranges from 60% to 100%. (80% to 90% is most common.)
  • Annual limit: Your plan might also have an annual limit to the amount of money you can claim. Once you reach this limit, you are personally responsible for additional medical charges.
  • Covered services: Every pet insurance policy is different when it comes to what bills are covered. Some policies only kick in for accidents and emergencies, and others include preventive care.

What does pet insurance cover?

There are three main types of pet insurance coverage, each of which accounts for different medical procedures and costs:

  • Accident-only coverage: This is the most basic form of pet insurance, and it covers emergency situations such as broken bones, bite wounds or ingesting a foreign object.
  • Accident and illness coverage: Accident and illness coverage pays for the cost of emergency injuries plus treatment for certain illnesses such as cancer, allergies or infections.
  • Wellness coverage: Wellness coverage is the most comprehensive form of pet insurance. It includes accidents and injuries and routine vet expenses, such as wellness exams, vaccinations and blood work.

Plans may include a combination of any of these covered instances, so you’ll want to read the terms of the policy carefully before deciding which one is best for you.

What does pet insurance not cover?

For the most part, pet insurance will not cover preexisting conditions. Even if you find a policy that covers preexisting conditions, you’ll likely be subject to a longer waiting period before coverage kicks in.

Other noncovered costs may include:

  • Elective procedures.
  • Pregnancy and breeding.
  • Behavioral issues.
  • Preventable diseases.

Pet insurance also won’t pay for nonmedical costs, like food, grooming or boarding.

How much does pet insurance cost?

The cost of pet insurance varies significantly depending on different factors, such as your pet's age, gender and breed, as well as the level of coverage, deductible and reimbursement percentage you choose. The average cost is between $10 and $53 per month, according to PetMD.

Pet insurance with wellness coverage — the most comprehensive option — will run you the most per year. According to the North American Pet Health Insurance Association 2023 state of the industry report, the average annual premium for this kind of coverage was $613.37 for cats and $1,134 for dogs in 2022. In comparison, the average for accident-only coverage was $122.19 for cats and $200.58 for dogs.

What to consider before getting pet insurance

Pet insurance can be costly, especially if you opt for wellness coverage or have an older pet or a breed with known health issues. Before deciding if pet insurance is right for you, consider if you have the budget for the premium and deductible as well as the kind of situations you might need pet insurance for.

Remember, however, that emergency vet visits can run to thousands of dollars, so if you do not have a fund in place to cover this charge, you need to be prepared to decide how you will shoulder the cost.

Related: Is pet insurance worth it?

How to get pet insurance

If you’re ready to sign up for pet insurance, follow these steps:

1. Compare insurance providers

The first step is to research available options and find ones that meet your needs. Are you insuring a dog, cat or other animal? What level of coverage are you looking for? What is your budget? These are all important questions to answer and make sure potential policies match.

2. Apply for coverage

Once you’ve chosen an insurance provider, you are ready to apply for coverage. You’ll be required to submit personal information about yourself and your animal, which may include health history information about any preexisting conditions.

3. Comply with the waiting period

Many pet insurance policies will have a waiting period of a few weeks before coverage kicks in. If possible, wait to schedule any veterinary visits until after this period.

4. Start using your insurance coverage

After you’ve been approved for coverage and your waiting period is over, you can start to use your coverage. You’ll continue to receive treatment for your pet as usual and cover the bill, but then submit your covered charges for reimbursement.

Popular pet insurance providers

If you’re ready to check out pet insurance policies, consider these popular providers:

Lemonade

Lemonade is a popular pet insurance provider, thanks to affordable plan options and comprehensive coverage for care, from annual wellness exams to vaccines. They offer an easy-to-use app where you can find out if your claim is covered in minutes. You also might be eligible for discounts on your premiums if you insure multiple pets or pay annually. Lemonade plans start at $10 per month.

Pets Best

Offering a variety of plans with comprehensive coverage, from accidents to routine care, Pets Best is another great choice for protecting your cat or dog. For accident and illness plans, Pets Best does not institute an upper age limit on pets covered, so pet owners with older furry friends might consider this provider. Plans from the issuer start as low as $6 per month for accident-only insurance for cats and $9 per month for dogs.

Fetch

Fetch is another popular pet insurance provider, offering a variety of plans for dogs and other pets. One unique selling point is that Fetch covers hereditary conditions linked to pet breeds, which many other providers exclude. If you have a pet breed with a history of health issues, a Fetch plan might be a good choice. The average cost for Fetch plans is $35 per month for dogs and $20 per month for cats, although it varies by coverage level.

Embrace

Embrace pet insurance offers a variety of coverage options, including pet dental insurance, which is difficult to find. The provider also has a more flexible policy regarding preexisting conditions than competitors, covering costs associated with curable preexisting conditions when the pet has been symptom-free for at least a year. Plans from Embrace start as low as $8 per month, depending on pet and coverage.

Nationwide

Nationwide is the only major pet insurance provider that offers coverage for “exotic” pets, or animals other than cats or dogs. If you’re looking for coverage for your lizard, rabbit, guinea pig or other pet not covered by traditional policies, this may be a good choice for you. Monthly premiums with Nationwide start at about $31 per month and vary based on coverage amount and type of pet.

Related: Best pet insurance companies

The AP Buyline roundup

Pet insurance can be pricey — especially if you want a low deductible and high coverage — but it can definitely be worth the cost. Unexpected veterinary emergencies are very expensive, and pet insurance can help you rest assured you will be able to cover the costs of keeping your furry friends happy and healthy.

Keep in mind that most pet insurance policies require you to cover the cost upfront and file for reimbursement later, so keeping an emergency fund to pay for these costs is also a smart financial move.

Frequently asked questions (FAQs)

How does a deductible work with pet insurance?

A pet insurance deductible works just like any other insurance deductible. You’ll need to meet this cost before your policy will cover any bills. Depending on your insurance provider, you might have an annual deductible or a per-incident deductible. With an annual deductible, you’ll need to meet the set amount just one time before further charges are covered, according to your plan’s terms, for the rest of the year. For a per-incident deductible, you’ll be responsible for paying a certain balance on every single vet bill.

How soon after getting pet insurance can you use it?

For the most part, you’ll be subject to a waiting period after you sign up for pet insurance before you can start to take advantage of it. This could be as short as a couple of weeks or as long as several months, and it can vary based on the instance you need to be covered. If you’re considering signing up for pet insurance, make sure to read your policy's terms and conditions carefully for these requirements.

Does pet insurance cover any pets besides cats and dogs?

It depends on the policy. Most providers — like Lemonade and Fetch — only provide coverage for cats and dogs, but you can find policies that extend to other animals. For instance, Nationwide Insurance covers exotic animals, from birds to guinea pigs.

AP Buyline’s content is created independently of The Associated Press newsroom. Our evaluations and opinions are not influenced by our advertising relationships, but we might earn commissions from our partners’ links in this content. Learn more about our policies and terms here.

How does pet insurance work? (2024)

FAQs

How does pet insurance work? ›

Quick Answer

How does it work with pet insurance? ›

It covers (reimburses) the costs of treating unexpected injuries and illnesses, so you don't have to worry as much about expensive vet bills. Unlike human health insurance, you can use your benefits an any vet or animal hospital.

How quickly does pet insurance work? ›

The typical waiting period is 14 days, particularly for illness coverage. Some pet insurance providers have a waiting period of only a few days for accident coverage. Hereditary conditions such as hip dysplasia typically have much longer waiting periods — up to a year.

How does pet insurance work when you go to the vet? ›

After taking your pet to the vet for routine checkups, emergency treatment or other wellness visits, you pay the bill at the time of service. You then submit a claim, and if covered, you get reimbursed for the cost of the visit minus the deductible and co-pay.

How is pet insurance calculated? ›

Insurance underwriters determine premiums by analyzing financial risks, so your plan cost will vary based on where you live, your pet's health, and historical or breed-related data that can indicate future risks.

Is it worth getting pet insurance for my dog? ›

"Insurance helps cover the unanticipated costs of pet ownership and can be a huge relief for owners as they typically cover 80-90% of the costs, depending on the plan," says Dr. Sarah Gorman, managing veterinarian at Small Door Veterinary in New York.

Is pet insurance paid monthly? ›

Average annual costs are displayed, but you can choose to pay monthly or quarterly instead. Learn more about which pet insurance coverage types are best for your needs.

Can I get pet insurance then use it straight away? ›

No, you cannot get pet insurance and use it straight away. All pet insurance companies have waiting periods. That's the amount of time between when you bought your plan and when coverage begins. The accident waiting period typically ranges between one to 15 days and the average illness waiting period is 14 days.

Do you get money from pet insurance? ›

Most policies come with an annual deductible, the amount you're responsible for before the insurer starts paying. Once you've met your deductible, most plans pay a certain percentage of your vet bill — typically 70%, 80% or 90%. And you may be subject to an annual maximum payout.

How does the deductible for pet insurance work? ›

A pet insurance deductible is the amount you pay for veterinary expenses before your pet insurance starts paying for covered care. The lower your deductible, the less you'll have to pay out of pocket per claim, but you'll also pay a higher insurance premium.

How much of vet bills does pet insurance cover? ›

Most pet insurance plans reimburse only 70% to 90% of covered veterinary fees after the deductible, so you would have to spend more than $10,000 on your pet's care in a given year to reach the limit.

What do vets think of pet insurance? ›

Many pet owners may not feel prepared to pay for an unexpected pet emergency, which can cost up to $5,000 or more for a major surgery or hospitalization. Pet insurance can help cover these costs, making it a worthwhile investment for your furry pal's health and your peace of mind.

How long does it take for pet insurance to pay out? ›

Processing a pet insurance claim is usually quire straightforward. Your payout should take between seven to ten days. If you call your provider, they can give you an estimated date for the payout. You may also be able to track to progress of your claim online.

Is pet insurance very expensive? ›

Pet insurance costs an average of $73 per month for dogs and $36 per month for cats, according to our analysis of pet insurance plans. These rates are based on unlimited annual coverage with an 80% reimbursement rate and $250 annual deductible, or the nearest option available.

Does pet insurance cover a lot? ›

Common reimbursement levels are usually 70%, 80% or 90%. However, some insurance companies like Figo reimburse 100% of your vet expenses. Your pet insurance company may also let you choose an annual coverage cap, such as $5,000. Some companies, such as Pets Best, Embrace and Spot, have unlimited annual coverage.

Do I get money back on pet insurance? ›

You can cancel pet insurance in the 14-day cooling off period and receive a refund. However, your insurer may take off a small amount to cover the days when the policy was in force.

How does a pet insurance deductible work? ›

A pet insurance deductible is the amount you pay for veterinary expenses before your pet insurance starts paying for covered care. The lower your deductible, the less you'll have to pay out of pocket per claim, but you'll also pay a higher insurance premium.

Does pet insurance cover all pets or just one? ›

Some insurers will allow you to add multiple pets to one policy, though most may require you to buy separate policies for each pet instead. Note that many pet insurance companies will only provide coverage for cats and dogs, so you may be out of luck with other pets like birds, hamsters, snakes, and rabbits.

Does pet insurance cover monthly medication? ›

The Bottom Line: Does Pet Insurance Cover Medication? Pet insurance covers medication as long as the condition it's prescribed for is covered under your policy. Medication for preexisting conditions isn't covered, and you'll need add-on coverage for preventive medication.

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