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Is it worthwhile to purchase pet insurance? Here’s what you should know before purchasing insurance


Pet insurance can assist with the cost of a pet emergency, but it may not cover all.
An animal friend can brighten your life, but if they become harmed or sick, you’ll have to bear the financial consequences of their medical treatment. This might put a burden on your budget if you don’t have hundreds of dollars on hand.

This is where pet insurance comes into play. This form of coverage can assist you in paying for your pet’s injuries and illnesses. However, not every circumstance is covered by pet insurance, so here’s what you need to know to decide if purchasing an average is the best decision for you (and your cat).


What exactly is pet insurance?

Pet insurance is an insurance contract in which you pay a specified sum known as a premium (which is generally paid monthly or annually). When your pet incurs qualified expenditures — often at a licensed veterinarian’s office — your insurance reimburses you for a portion of the cost (some pet insurance providers give the option of paying your doctor directly, but this is less usual).


When you acquire your coverage, you and the insurance company agree on the amount of reimbursement you will get for your pet’s treatment. A pet insurance policy has three moving factors that determine the cost and amount reimbursed: the deductible, the yearly limit, and the reimbursement percentage.

Here’s how each of these things affects the amount you’ll be refunded or pay:


The deductibility. This is the amount you will pay before your insurance kicks in. Your deductible is typically reset each year, while some policies include per-incident deductibles that must be met each time your pet visits the veterinarian. Read your insurance to see whether your deductible is per occurrence or year.

Amount of reimbursement. The amount you’ve selected is to be paid after meeting your deductible, which is often 70%, 80%, or 90% of the cost.

Annual coverage cap. The most you can be compensated in 12 months. Some insurance companies and policies include yearly coverage limitations that are infinite.

When it comes to pet insurance, several firms stand out in terms of pricing, quality, and coverage. Spot, our best overall selection, and Embrace, our runner-up pick, are among our top picks for pet insurance providers.
How much does pet insurance cost?
According to the Insurance Information Institute, the average cat owner paid around $32 per month for accident and illness coverage in 2022, while the average dog owner paid about $53 per month for the same coverage.

However, pet insurance rates vary depending on the sort of pet you’re insuring, the breed, the age of your pet, the type of coverage you pick, the limitations you set, and your region. It’s worth remembering that older pets are more expensive to cover, and pet insurance prices might rise as your pet ages.

Signs that pet insurance could be a good idea
While having pet insurance makes sense in a variety of situations, here are two of the most prevalent cases in which you should think consider searching for a policy:

You don’t have a sizable emergency fund.
If you have a little emergency fund and are concerned about paying a possibly huge vet bill, obtaining pet insurance may make sense. If your pet needs emergency, costly medical treatment, pet insurance coverage may help you finance the cost in the long term.

While experts advocate saving three to six months’ worth of expenditures on hand in case of an emergency, such as a pet accident or illness, this is not always achievable. Pet insurance may be able to fill that need while you concentrate on accumulating an emergency fund or savings.

Your pet is still quite young and in good condition.
Pet insurance, like life insurance, is most affordable when the insured party is young and healthy. This is also when you may receive the best insurance coverage, because your pet may not yet have developed chronic ailments that would be considered pre-existing conditions.

Pets as young as seven or eight weeks old can commonly be registered in pet insurance, however, some pet insurance providers have higher age limitations.

What is not covered by pet insurance?
Before you sign your pet up for a new insurance policy, it’s important to understand what your coverage won’t cover. Because each pet insurance policy differs somewhat, reading the tiny language may help you obtain a clearer idea of the coverage.

What your specific coverage excludes will be specified in your policy documentation, and exclusions may differ from business to company. Some frequent instances that are not covered by most plans include:

Existing medical conditions
Pet insurance nearly never covers problems that your pet had before enrolling in coverage. For example, if your pet had a chronic illness like diabetes before enrolling in pet insurance, charges connected to that condition may not be covered under your coverage.

Routine expenditures and wellness appointments
Routine fees like yearly vet visits, vaccines, and other expenses are typically excluded from regular accident or accident and illness coverage.

While insurance that covers things like routine vet visits and immunizations does exist, they are usually an extra fee. Several of our top pet insurance recommendations include wellness coverage. However, wellness programs increase your costs, and it may be more cost-effective to pay for these fees without the assistance of insurance.