About Pet Health Insurance

Why Consider Pet Insurance?

In the dark corners of our homes and veterinary clinics across the U.S., a difficult reality endures — the dilemma of Economic Euthanasia. This clinical term conceals an emotional journey that millions of pet parents and companion animal guardians face — the decision to end a pet's life due to financial constraints despite a treatable illness. Recent statistics reveal a brutal truth — in the U.S. alone, an estimated 2 out of every 3 pets (66%) are euthanized solely due to financial limitations, and 1 out of every 2 pet guardians would consider euthanizing their pets if diagnosed with a condition requiring costly treatment that was economically difficult to pay.

Today more than ever, pet guardians are in a hopeless situation, forced to choose between the cost of living, medical debt, and the lives of their furry family members.

How Can Pet Insurance Help Combat Economic Euthanasia?

Pet insurance alleviates unforeseen veterinary costs and greatly decreases the risk of Economic Euthanasia. MarketWatch states, "Pet insurance costs $768 annually for dogs and $324 for cats, with an average monthly cost of $49 per month" (April 2024). According to a CareCredit study, the average annual pet health care costs — which include expected wellness expenses and sick pet and emergency care — range from $374 to $965 for cats and $534 to $1,285 for dogs. Unfortunately, we cannot always predict our pet’s health needs; certain diseases and conditions can cost thousands more.

MarketWatch calculated expected care costs for common pet illnesses and injuries using claims data from several popular pet insurance companies. The chart below outlines costs for common pet illnesses and injuries:

With companion animal guardians and pet parents facing an increasing threat of Economic Euthanasia, pet insurance becomes apparent as a crucial safeguard. It's more than just a financial safety measure — it's a tool that empowers pet guardians to make healthcare decisions free from the limitations of financial restraints.

Pet insurance can shift the dialogue, offering an alternate path for those who would not typically be able to afford a large sum at once, even with a savings account. And, in hindsight, many pet parents regret failing to acquire an insurance policy for their dog or cat — with 55% of surveyed pet parents wishing they had pet insurance in the past to help cover unexpected veterinary care costs.

Pet Insurance Comparison Tools

Comparing pet insurance policies can be overwhelming considering the many variables to contemplate. To find the best plan, you should first identify which features matter the most based on your pet’s breed-specific health risks and your personal preferences.

The following pet insurance comparison tools can help you choose the right policy for your pet:

Pawlicy Advisor 

This is the AAHA membership Preferred Business Provider for pet insurance — they provide a comparison tool and personalized service that analyzes plans across top insurance companies to determine the best recommendation for your pet’s age, location, and breed-related needs.

ASPCA Pet Health Insurance

Includes a pet insurance comparison tool, a local vet finder, and resources about animal breeds and health conditions

Embrace

Offers a comparison tool that allows users to compare their coverage to other major pet insurance companies

Uswitch

A pet insurance comparison tool that helps you find a quote that matches your needs.

Compare the Market

Offers a pet insurance comparison service that allows you to compare quotes from numerous insurance providers.

How To Select the Right Plan For Your Pet

Choosing the right pet insurance company and policy can be challenging for any pet parent or companion animal guardian. You want a reliable company to ensure comprehensive coverage for your furry family member while finding an affordable option.

LET’S REVIEW THE TOP ASPECTS TO HELP YOU SELECT THE APPROPRIATE PLAN FOR YOUR PET:

Step 1 –  Coverage Options

The first thing you should consider when comparing pet insurance policies is the coverage options to ensure the plan covers everything your canine or feline companion might need. Some key coverage options to look for include: 

  • Accidents and injuries

  • Illnesses

  • Hereditary and congenital (present from birth) disorders

  • Chronic conditions

  • Behavioral issues

  • Prescription medications

  • Surgery and hospitalization

  • Diagnostic testing

Note: Be sure to compare coverage options against your pet’s breed-specific health risks. Some plans lack coverage for hereditary issues prevalent in certain breeds — you’ll want to ensure the one you choose offers protection for issues your pet may have a high likelihood of experiencing.

Step 2 – Exclusions and Limitations

While coverage is important, you also need to pay attention to the exclusions and limitations of each policy. Every pet insurance policy has restrictions on how and when it can be used, but it’s imperative to understand what they are before you sign up. Remember to compare the terms of each pet insurance policy (see How Does Pet Insurance Work?), paying close attention to the following: 

  • Pre-existing conditions

  • Breed-specific exclusions

  • Age limitations

  • Waiting periods

  • Maximum benefit amounts

  • Deductibles and co-pays

Step 3 – Cost

The next aspect to examine and an important factor to consider when comparing pet insurance policies is cost. You want to find a policy that is affordable but also provides adequate coverage for your pet. Variables that will have the greatest impact on out-of-pocket costs toward your pet’s care include: 

  • Premium rate – the price of the policy, billed monthly or annually

  • Deductibles – the amount you must spend out-of-pocket per incident or policy term before insurance coverage kicks in, set at a dollar amount or percentage rate

  • Co-payment – the portion of the vet bill you must cover after, defined by the policy’s reimbursement rate

  • Annual or lifetime limits – the maximum amount the insurance plan will payout for claims filed within a year or throughout the lifetime of the pet, above which you must pay out-of-pocket

  • Available discounts – the opportunity to reduce costs through multi-pet enrollment, policy bundles, membership affiliations, etc.

Step 4 – Flexibility

Many pet insurance companies offer flexible terms and allow you to customize various aspects of the policy. This enables you to tailor your plan to fit your budget while ensuring you receive the coverage that matters most to you and your pet. Generally, here’s how flexible terms could affect your final cost:

  • Deductibles – the lower the deductible, the lower your premium rate will be, because it means you will have to pay more out-of-pocket before veterinary expenses become eligible for reimbursement

  • Reimbursement rate – the lower the reimbursement rate, the higher your co-payment will be to cover the remaining percentage of vet bills

  • Maximum payout – plans that offer higher or unlimited payouts are typically more expensive, as the insurance company exposes itself to greater financial risk 

Step 5 – Customer Service

Competent customer service is also essential when it comes to pet insurance. You should choose a company that’s easy to work with and responsive to your needs. Some factors to seek include:

  • Hours of operation

  • Contact options (phone, email, chat)

  • Availability of customer service representatives

  • Window of time to file a claim

  • Optional filing methods

  • Average time for claim reimbursement

  • Ability to track claims online

Step 6 – Additional Benefits

Some pet insurance companies and policies offer additional benefits that can be helpful for pet parents. These can include things like:

  • Wellness coverage for routine care

  • Telemedicine options

  • Vet direct pay