Is Pet Insurance Worth It?

In most cases, the average pet owner should get pet insurance, even if it is just a accident-only policy to insure you for often expensive vet costs. According to Globe Newswire, 91% of pet owners experienced financial stress due to high veterinary care costs, and 63% of pet owners struggle with unexpected vet bills. To avoid this, you should get an accident only policy if your pet is young and under 3 years old and upgrade to an accident and illness policy as your pet gets older than this due to increasing risks.

While this a general heuristic that can work, it may not be a one size fits all approach for you, so below we'll break down when you need pet insurance coverage and when you don't.

Most pet owners choose mid-level coverage that balances pet insurance costs with solid financial protection with a $5,000 annual limit, $500 deductible and 80%. While this is a good recommendation for most, your particular companion's needs and your personal financial needs may differ and this requires modified coverage terms. In the sections below, we'll detail considerations into the coverage selection process to help you decide how much pet insurance you need.

Coverage needs depend on your pet's type, breed and age, plus your budget for upfront costs when your pet needs care: 

• Pet type: Dogs typically need more coverage than cats because they face higher veterinary costs and more injury risks from active lifestyles.
• Breed: Purebreds need higher coverage, as they have more health problems than mixed breeds. For instance, large dog breeds face joint problems, flat-faced breeds struggle with breathing issues, and certain cat breeds develop kidney or heart conditions.
• Age: Senior pets have the highest insurance costs and the greatest need for coverage, as older animals face more health problems and expensive treatments.
• Budget: Consider your ability to handle upfront veterinary costs before reimbursement arrives. Since you'll pay the full vet bill initially and wait for insurance payback, you need sufficient emergency funds or available credit for potentially expensive treatments.

Understanding your coverage options helps determine how much pet insurance you need, as these terms affect your monthly premiums and out-of-pocket expenses when filing claims. Below we've detailed the main parts of coverage plan selections you need to consider: 

• Deductible: Your deductible is the amount you pay each year before insurance coverage begins. Higher deductibles ($500 to $1,000) lower your monthly premiums but require more cash when your pet needs care. Choose a higher deductible if you have enough emergency savings and want lower monthly bills.
• Reimbursement rate: This percentage determines how much insurance pays back after you meet your deductible. Most insurers offer 60% to 90% reimbursement rates. Choose a higher rate if you want maximum financial protection or a lower rate if you prefer cheaper premiums and can handle larger out-of-pocket costs.
• Annual coverage limit: This sets the maximum amount your insurer pays per year, ranging from $5,000 to unlimited coverage. Higher limits cost more monthly but protect against large expenses like cancer treatment or multiple emergencies.

Deciding on pet insurance starts with understanding your pet's health risks, the available coverage options and the financial impact on your budget. The right amount of coverage depends on your pet's type, breed and age, plus your budget for upfront costs like deductibles when veterinary emergencies arise.

Pet owners often have additional questions beyond "Do I need pet insurance?" We've answered frequently asked questions about pet insurance coverage and costs below: