Cost of Pet Insurance
Factors that Determine Cost
Pet insurance cost is determined by a combination of factors. The first set of factors relate to the animal and include the pet’s breed, age, and location. The second set of factors relate to the coverage composition and what options are selected. The type of plan (accident-only v. comprehensive), deductible, reimbursement percentage, and annual maximum are the core determinants of policy related criteria used by insurance companies to determine the monthly premium. Insurance companies analyze data to estimate on average what a pet with certain characteristics will cost them and use that to determine the price their plans. You will find there is variability between insurance companies not only in how their plans are designed, but also how much their plans cost.
There are some core trends related to pricing that is helpful to understand, as the more you know the better position you are in to make a great decision, whatever that may be. Prices differ by geography, as the cost of veterinary care varies across the country. Cats cost less than dogs, and male animals cost more than females. Generally, the larger the animal, the more expensive they are to insure, while older pets cost more than younger ones.
How Reimbursement Works
Here’s a generic example of how reimbursement works:
Policy Information and Charges
- 90% reimbursement rate, $3000 annual maximum, and a $100 annual deductible
- $1,450 of veterinary charges due to an accident
How it works:
$1450 – $100 = $1,350 net charges after reaching annual deductible amount
$1,350 x 90% reimbursement rate = $1,215 reimbursement from insurance company (Savings)
$1450 – $1,215 = $235 is your out-of-pocket charges for the visit