If you’re unsure if you should buy pet insurance, consider how much money you have and what your pet needs. For instance:
- If your pet is older or has long-term health problems, an accident and illness policy may be too expensive or not cover your pet’s care. A discount plan may be a better deal because it doesn’t leave out senior pets or conditions that were already there.
- If you want low-cost insurance: An accident-only plan could be a good choice if you want the cheapest coverage possible but still want some protection in an emergency. Accident-only plans cost a few monthly dollars and cover sudden injuries like broken bones or bite wounds.
- If your pet is not that old: Pets that are young, healthy, and haven’t shown any signs of health problems are cheap to insure. If you sign up for insurance when your pet is young, you will be covered in case of accidents or illnesses in the future.
- If your pet needs surgery or chemotherapy: Pet insurance won’t help you if your pet is already hurt or sick and needs treatment. Before coverage starts, companies have waiting periods, and problems that were there before you got the policy will not be covered.
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Understanding what’s not covered and what’s already wrong
All plans don’t cover pre-existing conditions, which are problems your pet had before the policy started or during the waiting period.
Some companies will remove the exclusion if your pet hasn’t shown signs of a pre-existing condition for a certain amount of time, like 6 to 12 months.
Some companies have what is called “bilateral exclusions.” This means that if your pet has a problem on one side of its body, treatments for that problem on the other side won’t be covered.
And most pet insurance companies have lists of treatments that are not covered (you can sometimes find these in sample policies). Make sure you know what your policy doesn’t cover, so you don’t get a surprise later.
How to Find the Best Pet Insurance
There are a lot of differences between pet insurance companies in terms of what they cover, how much they charge, and what they don’t cover. Think about the following when comparing companies:
- Premiums: Premiums will vary quite a bit from one company to the next, depending on where you live, how old your pet is, and what breed it is. The best way to compare premiums is to get quotes from several companies, like the ones on our list above.
- Types of coverage limits: Coverage limits can be annual, per condition, or incident, depending on the company. The deductible for annual coverage limits is only one time, and it starts all over again every year. With per-condition coverage, the deductible for each condition is different, but you only have to pay it once for the pet’s whole life. At the same time, you can reach the maximum level of the condition quickly over the life of your pet. With per-incident coverage, the deductible is the same for each incident and starts over with each new one.
- Deductible: The deductible is the amount you have to pay out of pocket before your insurance company will pay for your claim. Your premium will be higher if your deductible is low.
- Reimbursement percentage: This is how much your insurance company will pay after you’ve met your deductible. For example, if your bill is $1,000 and the insurance company will pay 70% of it, you will have to pay $300.
- Treatments that are covered and those that aren’t: As we’ve seen, insurance companies have a lot of different policy exclusions. Take the time to learn about these exceptions, so you don’t end up with a big bill you weren’t expecting.
How to Choose an Insurance Company
Once you choose a company, you can usually get a quote for coverage and sign up your pet online. Most pet insurance companies have online portals where customers can view their policies, make payments, and submit claims. Some even have mobile apps.
Be sure to read the fine print when you buy a policy. After you sign up, some companies want you to send them all of your pet’s medical records. If you don’t, your claims will be denied.
How does insurance for a pet work?
Just like health insurance for people, pet insurance has deductibles, copays or coinsurance, and limits on how much it will cover. Most pet insurance companies pay claims by reimbursing the policyholder. This means that the policyholder pays for their pet’s care at the vet’s office and then sends in a claim. If the insurance company agrees with the claim, they will send the policyholder a check or an electronic transfer.
The National Association of Insurance Commissioners says that accident and illness plans make up about 98% of pet insurance policies. These policies pay for treatments like cancer, kennel cough, and broken limbs that happen out of the blue. The rest of the plans are usually “accident-only” plans that only cover injuries that happen out of the blue and don’t cover illnesses or long-term conditions.
Most pet insurance doesn’t pay for regular care or preventive treatments like vaccinations, checkups, or cleanings for the teeth or gums. But if you buy a separate discount or wellness plan, or if you add a wellness rider to your policy, you may get some coverage for these costs.
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