Pet insurance is a type of insurance policy that helps pet parents save on unexpected and often expensive veterinary care costs, such as surgery, medications, and diagnostic tests.
In 1988, just over half (56%) of American households had pets. Today, thanks in part to the recent pandemic, 70% of American households — more than 90 million homes — own at least one pet.
Note that we are using the term “own” here. That’s because although most of us consider our pets the heart of our family, they are by law considered “personal property”. And while many of us think of pet insurance as health insurance for pets, it is in fact a type of property and casualty insurance, much like auto, boat, and owner policies. home ownership.
How does pet insurance work?
With a pet insurance policy, you pay a monthly premium to the insurance company. And when you take your pet to the vet, you pay their office directly. Once payment is made, the pet owner (or sometimes the veterinarian’s office) submits a claim to the insurance company along with a copy of the bill. If treatment is eligible, a predetermined portion of the cost, less any deductibles or copayments, will be reimbursed.
The amount reimbursed will depend on the insurance policy you choose and, among other things, your pet’s breed, age, and health history. Certain policy restrictions may limit coverage to what is deemed medically necessary and to pay only “reasonable costs,” which is often less than what the veterinarian charges. for the treatment.
What does pet insurance cover?
In the past, pet insurance policies rarely covered routine or elective services, such as vaccinations, sterilizations, and sterilizations. Because the subject matter insured is an animal (personal property), the policies cover only “accidental incidents or injuries”. Today, however, many pet insurance policies offer comprehensive coverage for these more common procedures.
What pet insurance does not cover
You’ll want to understand the terms of any policy you’re considering to determine the coverage you need versus what the insurance company is offering to provide.
Some of the standard pet insurance exclusions are treatment for behavioral problems, hip dysplasia, cataracts, and dental care unrelated to an accident or injury. In addition, when renewing a pet insurance policy, which usually happens every 12 months, the insurance provider may deny coverage for pre-existing conditions or pre-treated conditions.
There are also cosmetic procedures, such as nail trimming and nail trimming (surgical removal of part of the ear or tail), which are considered unnecessary and are not usually covered by insurance.
Breed-specific health problems are not usually covered, so consider potential breed-related medical conditions when researching the policy. For example, the basset terrier has a chronic ear infection; if your policy doesn’t cover it, you’ll have to pay 100% of that medical cost out of pocket.
Types of pet insurance policies
There are many pet insurance policies, each with a different level of coverage. The most common types are:
- Accident insurance only provides coverage for accidental injuries, such as falls, car crashes, or ingestion of foreign objects. It does not cover illness or preventive care.
- Sickness insurance pay for the treatment of diseases such as cancer, diabetes or various infections. It does not provide coverage for accidents but may partially cover preventive care, such as vaccinations and routine checkups.
- comprehensive insurance offers the most complete coverage, including accident, illness and preventive care. Because it allows wider coverage, it is also more expensive.
What is the cost of pet insurance?
As mentioned above, you will have to pay a monthly premium to the insurance company. The sum insured and the cost of the premium will depend on the following:
- insurance company of your choice
- what kind of policy you buy
- kind of pet
- pet breed
- pet’s age
- coverage level
- and selected deduction amount
In general, policies for smaller pets will have lower premiums because they require less medical attention. And like other insurance policies, pet insurance has a limit (also known as a cap) on how much a provider will pay on a claim. That amount may vary depending on whether the visit is for an emergency or illness or for preventive or routine care. Some pet insurance providers limit reimbursement for extensive surgeries and care once your pet reaches a certain age. Others will limit or even exclude coverage for ongoing conditions.
Advantages of pet insurance
There are two significant benefits to consider when making a pet insurance policy.
- Pet insurance can save you money. Ask any pet parent about the most surprising part of pet ownership, and they will likely mention the high cost of vet bills. Veterinary care is expensive, especially for complicated conditions or urgent treatment, and an unexpected bill of hundreds or thousands of dollars can be shocking. With pet insurance, you can get help paying these costs.
- Pet insurance can give you peace of mind. Another advantage of pet insurance is that it can provide the comfort of knowing that your pet will receive the best possible care, even if it is expensive. With pet insurance, you won’t have to worry about whether you can afford your pet’s medical care. This can help you make decisions based on what’s best for your pet rather than what’s best for your bank account.
