A Comprehensive Pet Insurance Guide

How Does a Pet Insurance Policy Work?

Seeing your furry friend suffer due to illness or an accident can be distressful. It gets worse when you have to pay high vet fees you can’t afford. To lift some of the financial burdens you would have to bear in these circumstances, it’s a good idea to take out a pet insurance policy. This insurance type works just like any other insurance policy. You pay the insurance premiums monthly or annually. In exchange, if your pet has medical emergencies or needs treatment for certain conditions, the insurance carrier covers part of the related expenses, up to a certain limit. To get reimbursed for the vet expenses, the pet owner must submit a claim to the insurance company. There are also carriers who partner with specific veterinarians. These vets automatically get paid by the insurer for the eligible services the insured pet benefits from and there is no need to submit a reimbursement claim. The coverage varies depending on the insurer you choose and your pet. To extend their offering, some companies also offer riders, which are insurance add-ons that cover extra services, such as breeding or wellness care expenses. Most pet insurance companies can offer you insurance for your dog or cat. Some companies also cover rabbits, birds, horses, reptiles, and other small animals people often keep as pets.  Pet Insurance Coverage Per insurance can cover different expenses, depending on the type of insurance plan you choose. As you might expect, the more expensive the insurance plan, the more coverage it provides. There are three main types of expenses you get covered for:

·         Accidents

·         Illness

·         Routine care

Most insurance companies offer different plans. You can opt for a basic accident-only coverage plan, and you’ll only get reimbursed for the medical expenses stemming from accidents. Alternatively, you can get a more comprehensive plan that covers both accidents and illnesses. The latter is a rather complex area, so you should ask the insurer exactly what conditions get covered and if they accept pets with pre-existing illnesses.

The most robust insurance coverage not only reimburses you for accident and illness-related costs but also offers preventive care and grooming services. These plans can cover your pet’s dental cleaning and annual check-ups, vaccination, or blood work costs.  Some insurance companies also cover neutering and spaying expenses.

Covered conditions and exclusions

What conditions does pet insurance cover? The list is long, ranging from chronic conditions to stomach diseases, eye or ear infections, allergies and other skin problems, and more. You can get reimbursed for veterinary expenses whether your pet has an accident or an infection up to a specific coverage limit stipulated in your plan. 

Accident and illness pet insurance usually covers surgery, hospitalization, emergency care, and treatment for diseases the pet wasn't diagnosed with when you got the insurance plan.  Some insurance carriers also cover alternative and rehabilitative therapy like acupuncture and chiropractic therapy.

Behavioral therapies are also popular these days, especially among dog owners. Most insurance companies only cover this type of therapy with their most expensive policy.

Exam fees are another expense to watch out for when taking out pet insurance as some carriers don't cover them whilst others do. So, before you buy an insurance plan, it's always good to carefully check out the list of conditions covered. 

Also, think long-term, if your pet gets old and seriously ill, you might decide to opt for euthanasia. There might be some expenses related to cremation as well. Some carriers include these costs in their plans. 

Insurance Exclusions
One of the downsides of many pet insurance plans is that they don’t cover pre-existing conditions. In other words, if your dog or cat had already been diagnosed with a condition before you took out pet insurance, the carrier won’t cover the expenses related to the treatment required for that condition. Nonetheless, not all carriers are rigid when it comes to pre-existing conditions. Some companies apply a waiting period during which they offer coverage if the pet is symptom-free. This period is typically six or 12 months.

Moreover, there are different other veterinarian expenses pet insurance typically doesn’t cover. Not everything you buy at the vet can be reimbursed by the insurance company. In fact, some of the most common things you purchase there such as food, supplements, toys, or grooming services are not covered. Nonetheless, there are exceptions. If your pet is on a specific diet due to illness, the vet can give them prescription food, which is covered by some insurance companies that offer wellness or preventive care plans. If you pay for regular accident-only or accident and illness coverage, you will most likely not be able to get reimbursed for extra services such as cosmetic procedures (e.g., ear cropping, tail docking), preventive procedures, elective treatments, experimental treatments, breeding, or pregnancy. Mo There are also cases when the insurer won’t offer accident coverage if the injury your pet has is the result of negligence or o cruelty. The same goes for injuries caused by fighting or racing. Accident-only Coverage Pros and Cons Some pet insurance plans only cover your pet for accidents. So, if your dog or cat is injured in a car accident, for example, you can get reimbursed for their treatment expenses up to your coverage limit. However, you won't get anything if your dog gets an ear infection or has stomach problems.   An accident-only policy can be useful for young pets who enjoy good overall health and are less likely to fall ill.

The advantage of this type of pet insurance is that it is the cheapest. However, since it only covers accidents, you might have to pay hefty fees out of your pocket if your pet falls ill and needs medication or surgery. Some of the expenses covered by accident-only insurance include emergency care, surgery, x-rays, ultrasounds, and hospitalization costs. 

Accident and Illness Coverage Pros and Cons

As its name suggests, this type of insurance covers your pet both for accidents and illness. This is a more comprehensive insurance option compared to accident-only plans, but it will cost more precisely for this reason.

Nonetheless, accident and illness insurance coverage might be the best option. It offers more peace of mind as you will also be able to deduct treatment expenses if your pet is diagnosed with cancer, gets an infectious disease, or has a skin condition, which is quite common among certain dog breeds. If your pet is already past a certain age, and therefore more likely to start suffering from different conditions, it might be a good idea to pay for this type of insurance to avoid costlier payments further down the line.

Does Pet Insurance Cover Pre-existing Conditions?

Most pet insurance plans don’t cover pre-existing pet conditions at all. These are conditions your pet already had before you got coverage. Some insurance companies are willing to wait for a certain period until the pet is symptom-free to provide coverage for some pre-existing conditions.

Congenital and hereditary conditions are also important when choosing an insurance policy for your pet. These are conditions animals are born with (congenital) or passed down from their parents (hereditary). Many carriers cover them, but only if the pet didn't have any symptoms related to these diseases before your policy enters into effect. Other insurance plans offer limited coverage for these conditions. 

Pet Insurance Plans Waiting Period

When you start looking for pet insurance for your dog or cat, you will surely come across the phrase waiting period. This is the amount of time you have to wait between the moment you signed up for the insurance plan and the moment your pet’s coverage starts taking effect. This period varies from carrier to carrier. Conditions diagnosed during the waiting period are considered pre-existing conditions. Many apply a 14-day waiting period, which means you have to wait for two weeks before you can get money from the insurance company for eligible expenses. A short waiting period is an advantage because you can access reimbursement soon after your policy is activated. The waiting period is not flexible. You don’t have the right to ask for coverage before that period passes.   Usually, the coverage for accidents begins within a few days of getting the insurance plan. The coverage for illness typically enters into effect after 14 or 15 days.

Nonetheless, some conditions require longer waiting periods that usually end after several months or even a year.  Hip dysplasia falls into this category.

If you want to renew your policy, you have to check the waiting period terms. In many cases, upon renewal, you will have to wait again for that period to pass before you can get coverage. Moreover, if your pet was diagnosed with any conditions while the first coverage was in effect, those will be treated as pre-existing conditions after you renew your plan.

What Extra Benefits Does Pet Insurance Offer? 

To make their plans more enticing, some pet insurance companies offer extra benefits such as coverage in case your pet causes damage or injury to someone else or needs treatment while traveling abroad. You can also get reimbursed for holiday expenses if you had to cancel your vacation due to a pet medical emergency. If you have a medical emergency and can’t attend to your pet, some insurers cover the costs related to dog-sitting or similar services. If your pet goes missing, you can get coverage for advertising a reward and reimburse part of the reward if someone finds it.

Pet Insurance Premiums

Pet insurance has become increasingly popular these days. North American Pet Health Insurance Association (NAPHIA) stats show that this industry doubled in only three years from 2018 to 2021 and pet insurance premiums in the US exceeded $2.59 billion in 2021. Pet insurance premiums are the monthly payments you have to make so that your pet can benefit from insurance coverage. These premiums are calculated based on a series of factors including

·         The pet’s age: insurance for younger pets costs less as they are not as likely to get ill as older pets. The premiums’ value increases with the pet’s age.

·         The pet’s breed: you pay more for breeds that are more prone to specific illnesses.

·         The pet owner’s location: the state where you live and the town can determine your premiums’ cost, insurance in large cities is more expensive as vet costs are also higher.

Other aspects that influence the premiums’ cost are the pet’s size, the deductible, the coverage limit, the add-ons, the reimbursements amount, and of course, the carrier.

What Are Pet Insurance Deductibles and How Do They Work?

Pet insurance deductibles represent the amount of money you have to pay yourself for veterinarian fees before the insurance policy kicks in. Most insurance companies use an annual system for applying the deductible. Others apply the deductible for each incident that qualifies for coverage. After you pay the deductible amount, the carrier is responsible for reimbursing you for the rest of the sum, as per your insurance plan limits. Each year, the deductible amount is reset when the insurance plan is renewed.  

What Is Pet Co-insurance?

Co-insurance represents the amount of the veterinary expenses the insurance carrier reimburses you for when you make a claim for an accident, illness, or other expenses covered by your pet’s insurance plan. Co-insurance is calculated as a percentage of the bill.

How Much Does a Pet Insurance Policy Cost?

The cost of getting pet insurance varies depending on the type of plan you choose, the coverage limit, what pet you insure (insurance for dogs usually costs more than for cats), and whether you get riders or not. On average, pet insurance costs $35 per month for dogs and $28 per month for cats for a coverage limit of up to $5,000.

Bottom Line

Pet insurance offers different types of plans for dogs, cats, and other common types of pets. The most common pet insurance covers both illness and accident expenses, but there are wellness or preventive care plans as well, and riders you can add to your basic insurance to cover extra expenses. Pet insurance is based on monthly premiums whose value is determined according to your pet’s breed, age, size, and your address.