Veterinary care has become more advanced and more expensive. A single emergency surgery can cost thousands of dollars. Pet insurance helps pay those bills, but policies vary a lot. Here is how it works.
How pet insurance works
Unlike most human health insurance, pet insurance usually reimburses you. You pay the vet, submit a claim, and the insurer pays back a percentage of the eligible bill after your deductible. Most plans let you visit any licensed veterinarian.
Types of plans
- Accident and illness: the most common type. Covers injuries, illnesses, emergencies, surgeries, hospitalization and often prescriptions and diagnostics.
- Accident-only: lower cost, covers injuries such as fractures, bites and swallowed objects.
- Wellness add-ons: help pay for routine care such as vaccines, checkups and dental cleanings.
Common exclusions
- Pre-existing conditions, which is the most important limitation
- Waiting periods after enrollment, often longer for orthopedic conditions
- Cosmetic procedures and breeding costs
- Some hereditary conditions with certain insurers
Key choices that affect the price
- Reimbursement rate: typically 70, 80 or 90 percent.
- Deductible: annual or per condition.
- Annual limit: a capped amount or unlimited.
- Your pet’s age, breed and location.
Is it worth it?
Pet insurance is most valuable if a sudden large vet bill would strain your budget, and when you enroll while your pet is young and healthy, before any condition becomes pre-existing. If you prefer, setting aside a dedicated emergency fund for your pet is an alternative. Compare several plans and read the sample policy before you buy.
This article is for general information only and is not insurance, legal or financial advice. Rules and prices vary by state and insurer. Check your policy and talk to a licensed agent before making changes.
