What To Know About Pet Insurance Before You Buy
No matter the species or breed, pets improve many people’s lives. Our animal friends, however, come with financial costs. Just like humans, they need annual check-ups and occasional or regular medications. Sometimes, they run into serious health issues that require surgery or other advanced treatments.
All that costs money. Indeed, according to a study by the American Pet Products Association, pet owners in the United States spent more than $35 million on veterinary care in 2023. One way to mitigate the financial impact of managing your pet’s health is through insurance. However, it’s important to fully understand the total price and precise coverage of a policy before you buy.
Plan Types
Pet insurance works much like health insurance for human beings. For the cost of a policy, which generally includes monthly premiums and a deductible, you’ll obtain coverage for various eligible medical expenses. Examples may include prescriptions, surgeries, emergency care and even routine checkups. But it all depends on the specific plan you’re buying. Pet insurance typically falls into one of three buckets:
1. Accident-only policies that cover unexpected mishaps such as injuries, poisoning or ingestion of foreign objects,
2. Accident and illness policies that cover mishaps and certain medical issues, such as infections, chronic conditions and hereditary diseases, and
3. Wellness or routine care policies that cover preventive care, such as vaccinations, flea treatments and annual checkups.
Accident and illness policies tend to be the most popular because they offer the broadest coverage.
Major Factors to Consider
Pet insurance aims to protect you, the insured, from getting hit by substantial expenses for your animal friend’s medical care. However, as you might expect, the policies come with costs and risks that you must consider carefully.
For starters, you’ll have to pay monthly premiums to maintain coverage. You’ll also have to pay a deductible every time you wish to use the policy for veterinary care — up to a certain amount. Once you reach that amount, your policy should cover qualifying expenses up to a stated limit. Some plans may offer partial coverage before then, but most do not.
As of this writing, premiums typically range from $20 to $50, depending on your pet’s species, breed, age and preexisting conditions. Some policies cost even more. To complicate matters further, some policies allow you to go to only certain veterinarians.
You’ve probably heard the expression, “Make sure you read the fine print.” It certainly holds true for pet insurance. Every policy will include exclusions and limitations regarding the conditions and treatments provided. As mentioned, many policies exclude preexisting conditions. For this reason, it’s usually best to insure young, healthy pets. Some policies place a cap (limit) on the amount of coverage provided in a year or over the lifetime of the covered animal.
Finally, bear in mind that pet insurance premiums generally aren’t tax-deductible for individuals. If you happen to own a business that uses animals for operational purposes, you may be able to deduct your premiums as a business expense. Contact your tax advisor for further details.
Personal Choice
Whether or not to buy pet insurance is a personal choice. You may be able to cope with major veterinary costs by creating a savings account expressly for that purpose. Then again, obtaining pet insurance might better suit your needs and risk tolerance. If you decide to shop for a policy, be sure to identify all the costs involved and fully understand what’s covered and what isn’t.
