Purchasing pet insurance can be a great way to provide the best veterinary care for your pet while also protecting your wallet from unexpected and costly veterinary expenses. But choosing the best insurance option for you and your pet can be daunting. Here are a few tips for helping you choose an affordable pet insurance policy that best suits your wallet and the needs of your precious pet.
Familiarize Yourself with Common Pet Insurance Terms
Learning the lingo should be the first step taken in understanding pet health insurance. Familiarizing yourself with common pet insurance terms can help you better make sense of often-confusing policy details. Below you will find some of the most common terms you should understand before choosing a policy.
Benefits: Services and treatments covered in full or partially by pet insurance policy.
Deductible: Amount that you must pay out of pocket for provided services before pet insurance plan will reimburse for services.
Exclusions: Refers to what’s not covered by your insurance policy (e.g., pre-existing conditions, elective procedures).
Payout: Money reimbursed to you for provided services once a claim has been approved by insurance.
Pre-existing condition: Any health condition in your pet that is diagnosed before applying for policy.
Premium: Monthly payment made by you for pet insurance policy.
Waiting Period: Amount of time that must pass before your pet insurance policy goes into effect.
Chronic condition: Any health problem that cannot be cured and is long enduring, but may be treated and controlled (e.g., hyperthyroidism, diabetes).
Hereditary condition: Any condition that is proven or suspected to have a genetic basis or cause, and many times breed-specific (e.g., hip dysplasia, epilepsy).
Congenital condition: Any abnormality that your dog is born with. Often referred to as “birth defects.” (e.g., cleft palate, heart defects).
Alternative or holistic therapy: Any therapy or treatments that are not typically considered conventional Western medicine (e.g., acupuncture, massage, chiropractic).
Determine the Type of Pet Insurance You Need
There are two main types of pet insurance coverage to choose from – accident-only and comprehensive (accident and illness). Wellness plans are sometimes offered as an alternative to the two traditional types of coverage. It’s important to understand what each type offers so you can pick the best one for you.
Accident-Only Coverage
Accidents happen. And depending on the severity of any injuries suffered, veterinary bills could end up costing you a small fortune. That’s where accident-only coverage comes in. Accident-only plans basically provide coverage for anything associated with a sudden physical injury to your pet, like torn ligaments, broken bones, swallowed objects, bite wounds, poisoning, and more. Accident-only plans are usually more affordable than accident and illness plans and are often the only option for older pets or pets with pre-existing conditions.
Accident and Illness Coverage
The most comprehensive type of pet insurance, accident and illness plans provide coverage for any accidental injuries as well as illnesses like cancer, arthritis, hyperthyroidism, urinary tract infections, allergies, and more. Most accident and illness policies also cover breed-specific hereditary and congenital conditions and cover the cost of prescription medications associated with covered accidents or illnesses. Also note that comprehensive coverage should be obtained when your pet is young to avoid pre-existing condition exemptions and higher premiums.
Wellness Plans
Also known as preventative coverage, wellness plans help cover expected veterinary costs and routine care. Plans of this type typically cover items that you know your pet will need, like annual exams, vaccinations, spay/neuter, teeth cleanings, and flea and tick treatments. Most pet owners pay wellness care costs out of pocket, so this type of coverage is totally optional. However, if you do wish to invest in wellness coverage, you can usually include it as an add-on to your pet insurance policy or purchase directly from many veterinary hospitals.
Consider Deductibles, Reimbursement Levels, and Annual Limits
The amount of money you’ll have to pay out of pocket on a claim depends on the deductible, reimbursement percentage, and the annual payout limit on your policy. It’s essential to carefully consider these important features of pet insurance policies when choosing the right plan for your pet.
Deductible
Most pet insurance policies use an annual deductible model, allowing you to choose a deductible between $100 and $1000 that must be met prior to receiving any reimbursement payouts. If you want to have a lower premium, you may want to opt for higher deductible. But, if you want to pay less out-of-pocket for claims, you will want to choose a lower deductible. Keep in mind that insurance premiums do rise over time as your dog ages, regardless of the policies deductible.
Reimbursement Percentage
The reimbursement percentage is the portion of your vet costs that the insurance company will pay out after you have met the deductible. Reimbursement percentages are typically set at 70%, 80% or 90%. A lower reimbursement percentage will lower your monthly premium, but you will be responsible for a larger portion of the bill.
Annual Coverage Cap
Most pet insurance plans have an annual payout limit, which means that once you are reimbursed up to that amount, the insurance company will not cover any additional cost until the next policy year. Some companies do offer unlimited plans at a higher cost, with no annual limit on reimbursements. In addition to annual caps, some insurance plans have lifetime payout limits, so it’s important to find out if your chosen plan does.
Shop Around to Compare Prices and Plans
Coverage varies by pet insurance company, so it’s best to shop around to compare plans, coverage, waiting periods, age limitations, and quotes. The cost of pet insurance will also depend on your pet (species, breed, sex, age), the type of coverage you want, and where you live. You’ll also want to research each company’s track record to see if they excel or fall short in specific aspects of their policy coverage.
Most reputable pet insurance companies are members of the North American Pet Health Insurance Association. You can find a list of NAPHIA Member pet insurance companies on their website to help get you started.
Identify Ways to Lower Pet Insurance Premium
Many pet insurance companies offer discounts to help reduce premium costs. Some companies may even offer a healthy pet incentive that will lower your pet insurance deductible for every year you go without submitting a claim.
Multi-pet discount: Insuring more than one pet with the same pet insurance company could qualify you for a discount.
Annual payment discount: Paying your entire annual premium in advance could help lower your cost if a discount is offered.
Multi-policy discount: If your current home or auto insurance company offers pet insurance as well, they may offer a discount if you carry multiple policies from them.
Spay and neuter discount: If your pet is spayed or neutered it may help you qualify for a discount.
Group discounts: If your employer offers pet insurance as part of your benefits package at work, it’s possible that it may qualify for a group discount rate.
Military discount: If you are an active or retired military member you may be able to get a price break for your service.
So, Should You Get Pet Insurance?
Whether you get pet insurance or not is up to you, but veterinary care should always be a priority for your four-legged family members. Even if you are cash-strapped, there are other creative and effective ways you can access funds to help cover the costs of larger vet bills. Just don’t hold off on getting your pet the care they deserve.
You can open a savings account to help cover future vet costs – or look to friends and family to help you with the expenses. You can also apply for a line of credit with CareCredit, set up a payment plan with Scratchpay, or crowdfund your expenses with CoFund My Pet. There are even charitable organizations (e.g., Bow Wow Buddies Foundation, Brown Dog Foundation) that exist to help qualifying pet parents with their vet bills. Don’t fret. Help is out there.
