Protect Your Furry Friends: The Importance of Pet Insurance

As veterinary medicine continues to advance, the cost of caring for your pet increases. Pet health insurance can help offset a portion, if not all, of the expenses for diagnosing, treating, and managing your pet’s illness or injury.

You’re not alone if you’re considering insurance for your pet. In 2023, nearly 5.7 million cats and dogs in the U.S. were insured, marking a 17.1% increase from the previous year, as reported by the North American Pet Health Insurance Association (NAPHIA).

How does pet insurance work?

After purchasing your plan, there is usually a waiting period before coverage kicks in. While accidental injuries may be covered within days, illnesses typically have a waiting period of two weeks or more. Some conditions like orthopedic issues may have longer waiting periods, ranging from months to a year.

Most pet insurance plans allow you to see any licensed veterinarian without having to worry about in-network clinics. In most cases, you’ll pay the vet upfront and then submit the receipt to the insurance company for reimbursement.

What are the types of coverage?

Accident and illness coverage.

This is the most common type of pet insurance plan and usually covers a range of issues, from broken bones and allergies to surgeries and diagnostic testing.

Accident-only coverage.

A more limited plan that solely covers accident-related expenses.

Wellness plans.

Some insurers offer optional preventive plans for routine services that you’ll be reimbursed for, along with the annual limit for each. Depending on the plan, these services may include annual wellness visits, vaccinations, microchipping, and flea, tick, and heartworm testing and prevention.

What does pet insurance cost?

NAPHIA reports that the average pet health insurance premium for an accident and illness policy for dogs is $640.04 per year or $53.34 per month. Meanwhile, cat owners pay an average of $387.01 per year or $32.25 per month.

Prices can vary by company but are generally based on:

Pet’s age: Pets become more susceptible to accidents and illnesses as they age, resulting in higher insurance costs for older pets.

Pet’s breed: Certain pets are more vulnerable to specific conditions, which can impact insurance pricing.

Deductible: Common pet insurance deductibles range from $50 to $1,000. It’s important to consider how much you can pay out of pocket before insurance coverage begins.

Location: If veterinary costs in your area are high, your pet insurance is likely to be more expensive.

Before purchasing any kind of pet insurance, make sure to carefully read the fine print for any exclusions, limits, and waiting periods. If helpful, get advice from your veterinarian regarding your pet’s health and possible risks to decide whether pet insurance is the right choice for your situation.

Whether you choose to purchase a policy for your furry friend or not, setting aside funds for emergencies is always a smart move. REV offers various savings options to help you save for all your needs, pet-related ones included.

Learn more about ASPCA® Pet Health Insurance.