Cost of Pet Insurance

For many, pet insurance is within reach as it allows you to spread the cost of veterinary care over time, rather than paying for unexpected expenses all at once. This can help reduce the financial burden of caring for a pet and prevent pet owners from having to make difficult decisions about their pet’s care due to cost. Many policies have affordable monthly premiums and some offer discounts for insuring multiple pets or for enrolling in automatic payment plans. By planning for routine and unexpected veterinary expenses, pet insurance can help ensure that pets receive the care they need and that their owners are prepared for the financial responsibilities of pet ownership.
Generally, you can expect to invest between $20 and $50 per month for insuring your dog and between $10 and $35 per month to insure your cat. Generally pet owners compare and adjust the plan components such as such as the reimbursement rate, coverage limit, and deductibles to arrive at a policy that best is within budget. The first step is to understand what options exist by obtaining a free quote.

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

Costs for veterinary medicine continue to rise due to increases in the underlying costs of care related to equipment, facilities, and labor. Expect costs to continue just as other cost of living expenses rise over the long term. That said, it is most common for you to pay your provider directly and then submit a claim to the insurance company for reimbursement. The process is straightforward, with options including submitting online, via email, fax, or regular mail. Many plans offer the option for direct deposit which speeds up the process.

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