Owning a pet is typically a joy, but certain obligations can make it stressful — and expensive! Vet bills are, of course, the prime example of why owning a dog can lead to such a big financial strain.

Between annual checkups and standard treatments, your pup’s well-being can become quite pricey. Factor in unexpected emergencies, like a swallowed sock or a limp that materializes out of the blue, and those costs add up fast.

Pet health insurance has become an increasingly popular choice in recent years for exactly this reason. Owners pay a monthly premium in exchange for coverage of unexpected medical bills, mainly those related to an illness or an injury. 

The details of dog owner pet insurance plans can get quite a bit more complicated than that, especially when considering that most affordable plans only cover a percentage of the final cost. So, the question naturally comes to mind: is pet insurance worth it?

The answer varies according to your situation and the options available to you. 

To help you decide if it’s time to shell out a monthly premium in case Rover unexpectedly ends up in the ER, we’ve provided this pet insurance guide. It explains some of the basics of coverage and what to know about pet insurance in order to determine if it’s the right buy for you and your furry family members.

How Does Health Insurance for Dogs Typically Work?

Pet health insurance mirrors human health insurance in many ways. Holders purchase a policy and pay a monthly premium, filing for reimbursement any time they have a covered medical expense for their pet. 

Types of Pet Insurance Coverage

Coverage kicks in only under certain circumstances. Normally, pet insurance only covers costs related to:

  • Illness, including infections, other diseases, cancers, arthritis, and hyperthyroidism, as well as procedures needed to accurately diagnose the condition and all related treatments and medications.
  • Accidental injuries, such as falls, bites from other animals, car accidents, swallowed objects, and poisonings, including all imaging, other diagnostics, and treatment for the emergency injury.
  • Congenital conditions that develop as the dog ages, including those related to specific breed lineages, like hip dysplasia.
  • Hospitalization and surgery if your dog undergoes a procedure and/or is referred to an animal hospital for an overnight or multi-day stay.

Dog health care plans are supposed to provide coverage for all reasonable and necessary costs involved in treating the covered condition. However, that coverage is up to the insurance carrier’s discretion, and they may deny coverage for certain treatments considered to be experimental or unnecessary.

Common Exceptions for Pet Insurance Coverage

Notably, pet insurance does not typically include coverage for preventative care and anything that falls under the umbrella of “wellness.” It will not, for example, cover the costs of routine vet exams so long as the dog is not going in for any particular problem. 

It also may not cover supplements and other treatments addressing a condition that is not considered by the insurer to be life-threatening or seriously impacting the animal’s well-being. If, for example, the animal takes joint supplements for an undiagnosed condition or eats special diet food to prevent conditions like a urinary tract infection (UTI), these will likely not be covered by a typical illness and accident plan.

Dog owners who wish to extend coverage may be able to purchase a wellness and preventative care add-on insurance plan, however, if they are willing to pay extra in order to have more typical care costs covered.

Nearly all plans also will not provide any coverage for a pre-existing condition, though. A pre-existing condition refers to one that was diagnosed (or should have been diagnosed, based on substantial medical evidence) prior to enrollment in the plan.

Deductibles, Reimbursement Levels, and Payout Caps

One thing to strongly consider when purchasing a dog insurance plan is the size of the deductible and the extent of coverage offered for your costs.

A deductible for pet insurance works just like any other insurance plan: policyholders must typically pay a set amount before their coverage kicks in. This requirement means they must still have some money set aside in case of emergencies. 

A common deductible size for pet insurance is $500, but different plans come with different deductible amounts. Once the deductible is met, the policyholder usually doesn’t have to pay it again until the plan period resets, often at the beginning of a new 12-month coverage period.

Further, most pet insurance plans won’t cover 100% of the costs of care, even after the deductible has been met. Instead, they will typically cover 70% – 90% of the total costs, leaving the dog owner to foot the remaining bill.

Considering these two factors, pet insurance holders will still need to be prepared to cover their deductible and required cost share, if applicable. They can elect to lower or remove their deductible — or to extend their plan to cover 100% of all applicable costs — albeit for an increase in their monthly premiums.

Pet insurance plans are also likely to have a cap on the total amount paid out for coverage in an annual period. A common payout limit is $10,000 per year.

How Much Is the Average Premium for a Pet Insurance Plan for Dogs?

The biggest question dog owners should have when deciding whether or not to purchase insurance is: will it end up saving me any money?

Even before factoring in the costs of a deductible and cost-sharing, monthly premiums will set owners back quite a bit. A study conducted by the North American Pet Health Insurance Association (NAPHIA) found that the average cost of premiums for dogs was roughly $676 per year, dividing out to an average of $56.30 a month.

While that may not sound too bad, one must also consider that insurance premiums are set according to the individual animal’s risk profile. 

Age, for example, is a major factor in the cost of premiums. Simply put: younger animals are less likely to encounter serious health problems, making the cost of their premiums lower.

Premiums will then rise as the animal ages and are more likely to encounter health issues — or risk more serious complications from a common condition like an ear infection.

Research conducted by NerdWallet found that the average cost of pet insurance for dogs rose from $31.50 for a two-year-old dog to a staggering $156.69 per month for a dog that’s 12 years old.

Like any insurance plan, premiums may also rise if the carrier determines that the animal is a considered a particular risk. If they have multiple accidental injury claims in a year, for example, or develop a condition that is likely to lead to other health conditions (such as hyperthyroidism) then premiums may rise.

Dog owners must also be ready to anticipate general rises in premiums that can occur year-over-year. As costs of living and doing business rise for everyone, pet insurance carriers must compensate for the added overhead by charging more in premiums.

NAPHIA data found that the average cost of accident and injury coverage premiums for dogs rose by more than $35 — or roughly 5.6% — from 2022 to 2023.

Is Pet Insurance Worth Getting for My Dog?

Ultimately, the decision of whether or not to get pet insurance rests on your appetite for risk and your assumption of how often your pet may need care. 

Make no mistake: pet insurance is very profitable for those in the business precisely because it only covers events that are, statistically, not very likely to happen over the course of the pet’s life. Pet owners with dogs that are likely to need the coverage — such as a curious pooch with a penchant for eating inedible objects — are likely to end up paying higher premiums as a result of their dog’s risk profile.

Enrolling Earlier in Your Pet’s Life Can Be Better

Another factor to consider is that timing can have a huge effect on your ability to come out ahead. The earlier you enroll in a plan, the cheaper coverage will be.

Many insurers will limit the amount they raise your premiums each year, even though the animal is aging into a higher risk bracket. Also important to note: the earlier you enroll, the more likely it is that a new, expensive condition like cancer will be covered, compared to enrolling an animal that had a pre-existing condition.

Pet owners can determine whether or not the premium costs are worth it by looking at the average annual cost of their vet bills over the last five or so years. They can then simply multiply the proposed plan’s premium by 12 (factoring in any additional likely costs, including deductibles) and see if they would come out ahead.

Consider Your Ability to Pay for an Emergency

Of course, not every pet owner has a couple thousand dollars lying around to cover an emergency vet bill, which would also put them in a bind.

“Pet parents should put themselves in the (hypothetical) situation of having a much-loved pet require expensive emergency care or a surgical procedure,” suggests Dr. Philippa Pavia, VP of medical strategy at Bond Vet in New York. “Would paying for that procedure be a significant source of financial stress? Is a smaller monthly amount feasible for your family and preferable to saving separately for that possible — but not guaranteed — future need?”

Pet owners may even find themselves in the position of eating away at their savings or going into debt rather than forego lifesaving but expensive care for their beloved dog. If this sounds like a position you’d rather not be in, pet insurance may be a good buy for the price of your own peace of mind alone.

Shop Around — And Weed Out the Bad Dog Insurance Companies

Another factor to consider is the availability of a plan offered by a reputable carrier at a price you can realistically afford. 

Always do your research, as organizations like Consumer Reports have documented that many pet insurers are notoriously unreliable, denying coverage for specious reasons or even being impossible to reach when it comes time to request reimbursement. 

Not everyone has been dissatisfied with their coverage, though a MarketWatch Study surveying pet owners with a pet insurance policy found that a staggering 81% felt it was ultimately worth the cost.

Give Your Pets a Safe Place to Stay at Greenlin West in Mechanicsburg

While you can never predict what will happen to your precious pet — especially when you can’t be there alongside them — you can put their health and safety in good hands when they come to Greenlin Pet Resorts in Mechanicsburg.

Our staff are all certified in pet first-aid and CPR, which means that our guests for dog boarding, dog daycare, and even dog training are able to receive life-saving care in the event of an unforeseen emergency. After all, sometimes the best insurance is knowing your pet is under the watchful eye of someone who knows how to make the difference right when your pet needs it most.

Find out how we pull out all of the stops for your pet’s health, comfort, and safety when you book a stay or training session at our dog boarding, daycare, and training center in Mechanicsburg, PA. Alternatively, call us at (717) 388-8110 We can’t wait to meet your charismatic canine and welcome them to our extended family of satisfied customers, so reach out to Greenlin West today!

Posted in Pet Health Category