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What Is Pet Insurance?
Pet insurance is a health insurance policy for your pet that pays for medical expenses and sometimes other costs. Pet insurance plans are reimbursement-based, meaning you pay up-front for the pet’s vet bills and submit a claim to the insurance company.
More than 91 million households in the U.S. have pets, which roughly translates into more than 91 million opinions on how to best care for a pet.
Factors that Determine Pet Insurance Costs
Pet’s breed. Certain breeds are predisposed to illnesses and hereditary problems, which often means more veterinary visits and higher medical expenses.
Pet’s age. Older pets are more expensive to insure than younger pets. As the pet gets older, your pet insurance premiums could increase when you renew the policy.
Pet’s gender. Insurers have found that male pets usually have a higher number of claims than females, Female pets cost about 5% less than males for pet insurance, according to the National Association of Insurance Commissioners.
location. Veterinary costs vary by location, so pet insurance plan costs account for that.
Where you live, and the local cost of veterinary care in the area, will affect pet insurance costs. For instance, pet owners in urban areas may pay more for pet insurance due to higher average vet costs.
Deductible and reimbursement level: These are the three main variables that determine your reimbursement level when you have a claim. You will pay more if you select a high annual maximum.
low deductible, and high reimbursement level. For example, a plan with unlimited annual coverage, a low deductible, and a 90% reimbursement level would be the most expensive each month because it has the potential to pay out much more.
Average Pet Insurance Costs
For dogs, pet insurance ranges from $20 to $44 a month. For cats, its ranges from $12 to $46 a month. Overall, pet insurance costs an average of $35 a month for dogs and $28 a month for cats in 2022, for $5,000 in coverage for the year.
You can find a policy that fits almost any budget by adjusting the levels of coverage inside the plan. Know that pet insurance rates generally rise every year at renewal time as your pet gets older.
The cost of pet insurance varies based on multiple factors, including the type of coverage, the amount of coverage, and the pet’s breed and age.
As Pet insurance costs vary depending on the pet insurance company. That’s why it’s a good idea to compare pet insurance quotes from multiple insurers before you buy a policy.
The average cost of dog insurance with $5,000 coverage
| Company | National average cost per month for a puppy | National average cost per month for a dog | Overall national average cost per month |
|---|---|---|---|
| Lemonade | $20 | $20 | $20 |
| Pets Best | $24 | $24 | $24 |
| Figo | $34 | $33 | $34 |
| TrustedPals | $36 | $32 | $34 |
| Petplan | $37 | $47 | $42 |
| Embrace | $46 | $44 | $45 |
| ASPCA | $46 | $44 | $45 |
| Spot | $44 | $47 | $46 |
| Average | $34 | $35 | $35 |
Factors In Pet Insurance Costs
Coverage type
One of the biggest factors determining pet insurance cost is coverage. For instant, a comprehensive policy that covers a range of treatments and also routine care will cost more than an accident-only policy.
Your coverage choices depend on the pet insurance company.
- Comprehensive pet insurance plan. A comprehensive pet insurance plan will combine an accident and illness policy with a routine care plan.
- Accident and illness coverage. This type of policy helps pay for vet bills for unexpected incidents, such as sprains from accidents, poisonings, and common illnesses, such as ear infections. This might also cover lab tests, surgeries, hospitalization, prescription medications, and emergency care.
- Accident-only coverage. This type of policy covers certain medical expenses if your pet suffers an accident, such as a broken bone. Coverage might include diagnostic tests, surgeries, X-rays, hospitalization, prescription medications, and emergency care.
- Routine wellness plans. This type of policy covers medical expenses for wellness exams, flea and heartworm prevention, vaccinations, and other routine annual care. These plans are typically add-ons.
Pet’s breed
Your pet’s breed is a factor in determining pet insurance costs. That’s because some breeds are prone to illnesses, which translates to more veterinary visits and high medical bills.
In our analysis of filings by pet insurers to state regulators, we found many pricing levels based on dog breeds but little variation for cats.
Cats are cheaper to insure than dogs. And birds, reptiles, rabbits, and ferrets cost less to insure than cats.
Age of pet
A pet’s age As your pet gets older, the chances of illness and injury increase, which results in higher pet insurance costs. We find age rating factors for a Veterinary Pet Insurance Co. policy and found that the best prices were after a pet’s first birthday until age six. By the pet’s ninth birthday, you can expect its age rating factor to more than double.
Pet Insurance: What does it Cost Cover in 2022?
