Is pet insurance worth it? What to know before getting coverage
Pet insurance can help in an emergency but it doesn't cover everything.
In addition to the emotional impact of a sick or hurt pet, a trip to the vet's office can lead to a huge financial fallout. That's where pet insurance comes in: There are policies to cover costs associated with injuries and disease, as well as wellness plans to help your animal companion stay healthy.
Nearly one in four pet owners have a policy for their furry friend, according to a December 2023 survey by The Harris Poll for Nerdwallet.
However, pet insurance doesn't cover every situation — or every pet. Here's what you need to know to decide if a policy is the right move for you (and your pet).
Pet insurance
Compare pet insurance to find a policy that works for you
What is pet insurance?
Pet insurance helps pay for health care costs associated with pets. While most policies are for dogs and cats, according to the North American Pet Health Insurance Association, there is insurance for exotic animals.
When you sign up for a policy, you pay a set premium for coverage, usually monthly or annually. Typically, pet owners pay out of pocket for when their pet is treated for a covered condition, then file a claim to be reimbursed for a portion of the bill. (Some pet insurance companies will pay your vet directly, but it must be arranged in advance).
Your premium and reimbursement amount depends on three things:
The deductible: The amount you pay out of pocket before your insurance kicks in. Your deductible usually resets annually, though some policies have per-incident deductibles each time you go to the vet. Make sure to read your policy to understand which kind you have.
Spot, one of our top picks for pet insurance, offers five choices of annual deductibles: $100, $250, $500, $750 and $1,000.
Spot Pet Insurance
Cost
The best way to estimate your costs is to request a quote
Policy highlights
Spot Pet Insurance offers accident and illness and accident-only coverage for cats and dogs. It has a variety of choices of reimbursement rates, annual limits (including an unlimited policy), and deductibles to cater your coverage to your needs and budget. The option to cover preventative care procedures and exams (including a dental cleaning and wellness exam) for an extra fee is available.
App available
Yes
Standout features
There are no upper age limits for new enrollments to Spot and plans include coverage for microchipping. Spot also offers access to a 24/7 veterinary helpline to address questions about wellness and health concerns.
- Accident and illness plans are available, with wellness options available
- Access to a 24/7 veterinary helpline included with coverage
- 10% discounts for additional pets
- Pets must be eight weeks old to enroll
- A 14-day waiting period applies for coverage
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Reimbursement amount: This is how much you'll be paid back after you meet your deductible. Typically this is 70%, 80% or 90% of the cost of a treatment. Trupanion has a 90% reimbursement rate for all covered costs throughout the life of your pet.
Annual coverage limit: The cap on how much you can be reimbursed in a 12-month period. Some insurance companies, like Pets Best and Embrace, offer policies with unlimited coverage.
Pets Best Pet Insurance
Cost
The best way to estimate your costs is to request a quote
Policy highlights
Available in all 50 states, Pets Best is a standout for its affordable rates. While wellness policies are available, Pet's Best focuses on accident-only policies and accident and illness policies.
App available
Yes
Standout features
Pet's Best offers coverage to cats and dogs as young as 7 weeks old, and has no maximum age limit. An option to pay your vet directly is available.
Embrace Pet Insurance
Cost
The best way to estimate your costs is to request a quote
Policy highlights
A variety of maximum annual limits, reimbursement choices and deductibles allow you to tailor coverage to your needs and budget. A two-day waiting period for accident policies can also help get your pet covered sooner, though illnesses have a 14-day waiting period.
App available
Yes
Standout features
Embrace offers the option of unlimited annual coverage limits. It also offers coverage for non-invasive treatments, like chiropractic care, hydrotherapy and acupuncture.
What pet insurance covers
Each policy and provider is different, so read the fine print before buying a policy. Depending on the plan you choose, these are what is covered:
Accident-only policy: a basic plan covering expenses related to emergencies — like broken bones, bits, swallowed objects and traumatic dental fractures. These policies don't cover illnesses, parasites or cruciate ligament injuries.
Accident and illness policy: Cover everything in an accident-only policy, as well as illnesses like cancer and diabetes, hereditary conditions like hip dysplasia or glaucoma, and prescription medication.
Wellness policy: Covers checkups, vaccinations, microchipping, teeth cleaning and spaying/neutering
What pet insurance doesn't cover
Exclusions vary by company, but pet insurance companies rarely cover pre-existing conditions —a medical issue that your pet had before you signed up for coverage. Some will cover pre-existing conditions that have been cured for a certain amount of time, such as broken bones or respiratory infections.
Elective procedures, grooming and costs relating to breeding, pregnancy or birth are typically excluded from pet insurance policies. While most plans don't cover hereditary disorders or euthanasia and funeral expenses, both Pets Best and Embrace, include it in certain accident and injury policies.
Many carriers won't insure animals past a certain age, but there are also some with no age limit.
How much does pet insurance cost?
The cost of pet insurance can vary greatly based on the kind of animal, its breed, size, gender and age — as well as the type of coverage you're getting and where you live.
In 2023, the monthly average for accident-only pet insurance in the U.S. was $9.68 for cats and $17.01 for dogs, according to a report from the North American Pet Health Insurance Association. For accident and illness insurance it was $56.30 for dogs and $31.94 for cats.
Is pet insurance worth it?
There are many situations where pet insurance makes sense: If your emergency fund is limited and you're concerned that a large unexpected veterinarian bill could break the bank, monthly premiums could be a lot easier to afford.
Pet insurance could also make sense if your pet is still young and healthy: Like life insurance, pet insurance tends to be the cheapest when the covered party is younger and developed an illness that could be excluded as a pre-existing condition.
Animals can often be enrolled as young as seven or eight weeks old
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FAQs
What are the three types of pet insurance?
Pet insurance companies typically divide policies into three categories: accident-only, accident and illness and wellness. Accident-only is generally less expensive but covers fewer situations.
How much should you spend on pet insurance for a dog?
In 2023, the monthly average for an accident-only pet insurance policy for a dog was $17.01. For accident and illness insurance, it was $56.30 for dogs.
Is pet insurance worth it?
Nearly 1 in 4 pet owners have pet insurance, but whether it's worth the cost is a personal decision that depends on your budget and the age, health and type of pet you have.
Does pet insurance cover vaccines?
Accident-only and accident and injury policies generally don't cover vaccines but many top providers have wellness policies that do cover vaccines and other routine costs, like teeth cleaning.
Bottom line
Pet insurance can help both your animal companion and your wallet. But it doesn't cover every situation and it can get pricier as your pet gets older. Knowing what a policy includes (and excludes) and getting multiple price quotes can help you make an informed decision.
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