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Nearly 90 million households in the US own one or more pets, according to AVMA. For many people, their pets are more than just animals. They are best friends and companions — cherished members of their families. You owe it to your pet to protect them and ensure they get proper care. Buying pet insurance can give you peace of mind and ensure they are protected for the long haul.
Pet insurance can be a smart financial decision in the long run. With that in mind, the team at Insurdinary is here to discuss the many benefits of buying pet insurance.
Just like health insurance for humans, pet insurance exists to pay for routine and emergency health care for pets. As the cost of vet care rises, more and more Americans are turning to insurance coverage to manage pet healthcare costs. As of 2022, about 4.8 million pets in the US have some kind of medical insurance coverage, according to Insurance Information Institute.
Pet insurance works largely the same as regular health insurance. You pay a set premium every month, and the policy will bear a portion or all of the cost of pet medical care after you meet your deductible. Most owners get one of three types of pet insurance:
Most pet insurance works through vet reimbursement. When you go to your vet, you pay the vet after getting service and then file a reimbursement claim with the insurance provider. Pet insurance companies don’t have provider networks like human health insurance providers have, so your policy should work with any licensed vet or specialist.
Veterinary insurance policies also have a reimbursement percentage that determines how much they will cover. For example, a 70% reimbursement rate means the insurance company will reimburse you 70% of the cost of the procedure. If the cost of care was $1,000, insurance would reimburse you $700.
Like other types of insurance, pet coverage also has deductibles — i.e., the cost you must first pay before insurance will kick in. Generally speaking, deductibles and premiums share an inverse relationship, so the lower your deductible, the higher your monthly premium.
For example, say you have a deductible of $300. That means you have to first pay $300 out of pocket, after which the insurance company will reimburse you according to the established rate.
However, unlike human health insurance, pet insurance typically does not have copays. You simply pay the vet upfront and the insurance company will reimburse you at the established rate. Insurance companies that directly work with vets may have a copayment scheme, but this kind of arrangement is less common for pet coverage policies.
Pet insurance also has maximum limits, which is the maximum amount of vet work the policy will cover per year. For example, a policy that has a $5,000 limit will only pay for $5,000 worth of care during that calendar year, after which the limit resets. Some providers let policyholders roll over a portion of their unused benefits to the next year.
Many owners might think that pet insurance costs too much with little to no benefit. However, pet insurance can often be the right decision from a financial perspective.
According to APPA, Americans spend over $70 billion on vet care and vet products every year, with an average annual vet bill of over $800 per dog and over $400 per cat. Pet insurance can significantly reduce that medical bill by covering any costs related to accidents, illnesses, and routine care.
For example, a policy with an 80% reimbursable rate can save you nearly $650 dollars off the average cost of covered vet care for a dog. That way, you can focus on your pet getting the care they need without worrying about finances.
It’s important to balance total coverage with any premiums, deductibles, and copayments. For example, a comprehensive pet coverage policy may not have maximum limits, but it will have a higher monthly premium.
One of the best ways to maintain your pet’s health is to receive routine vet checkups. Routine checkups can include important things like immunizations and flea treatments — regular care that sets your pet up for long-term good health. Preventative care is especially important if you own a breed of cat or dog that is susceptible to developing congenital issues, such as hip dysplasia.
Among other things, preventative care can safeguard your pets from the following issues:
Vet emergencies are just a fact of life when it comes to pets. If your pet gets in an accident, a pet coverage policy can pay for any emergency care. A simple emergency exam can cost over $200, and overnight emergency care can cost $1,000 to $2,000 per night.
The good thing about pet insurance is it should be valid at any licensed vet clinic. So, if you are out of town and your pet gets into an accident, you can take it to a nearby clinic without worrying about being out-of-network.
Pets that have chronic issues might need specialized long-term care. Pets can develop long-term issues such as diabetes that can be very expensive to manage without a policy. A pet policy covering pre-existing conditions and chronic care could potentially save you thousands in vet bills over the lifespan of your pet.
Common chronic conditions that cats and dogs suffer from include:
Policies that offer coverage for chronic issues will probably charge more expensive premiums, but the potential savings can make the upfront cost worth it. Chronic disease management becomes even more important as your pet ages.
Part of your insurance plan might include lost pet assistance to help you locate and get care for missing pets. The way lost pet assistance works is that it can cover the cost of microchipping.
A pet coverage policy may also cover the cost of advertising and rewards for finding a lost pet. Newspaper ads, online listings, and physical posters can be covered, and your policy may even partially or fully cover the cost of a pet detective.
Other potential costs that lost pet assistance might cover include:
Losing a pet can be incredibly stressful, but a lost pet assistance add-on can help you manage the stress and cost of recovering your lost pet.
Last but certainly not least, pet care assurance can provide peace of mind. The idea of a pet getting sick or injured is bad enough, and you don’t need the added stress of figuring out how to manage finances in the event something bad happens. For a simple monthly fee, pet insurance can give you peace of mind, knowing that you can provide for your pet, whatever may happen.
Below are answers to some of the most common questions people ask about buying pet insurance.
Don’t wait to buy pet insurance until you need it. Insurdinary takes the stress out of comparing animal insurance plans from the top providers. Request a quote today!