Many pet owners think of their dogs, cats and other animals as members of the family. In fact, according to the American Pet Products Association, Americans spent a record-shattering $103.6 billion on their pets in 2020—with more than $31 billion spent on veterinary care, medical supplies and over-the-counter medications. That’s a lot of love, and a lot of money.
Vet Bills Can Be Expensive
As technology and medications become more advanced, a visit to the vet is getting more expensive. Based on WalletHub’s calculations, dog owners can expect to shell out between $250 and $750 on vet care per year. Cat owners get off a little cheaper, paying between $160 to $560 a year. Multiply that over an average lifespan of 15 years, and you could be spending more than $11,000 on each pet.
With the reality of these costs, pet insurance businesses have entered the market to help pet owners reduce their financial risk. The trick is finding the right coverage at the right price—or deciding on an alternative plan for financing emergency and routine medical expenses.
How Does Pet Insurance Work?
Health insurance works much in the same way for pets as it does for people. You pay a monthly premium, and your policy pays for medical care based on what your plan covers. Pet insurance often includes deductibles, copays and maximum cost caps like human policies do.
However, pet insurance can also have certain exclusions. Your pet’s species, breed, age, location and existing health conditions all factor into the cost of their health insurance policy. For that reason, when you’re looking for coverage, it’s important to review the limitations for your particular pet.
One big difference between pet insurance and human health insurance is the payment process. Most pet insurance works on a reimbursement basis, meaning you pay the vet up front and then apply for reimbursement from the insurance company.
Pet insurance premiums can run anywhere from $30 to $50 per month. Policies with higher deductibles usually have lower monthly costs. This may seem pricey, but compared to the cost of emergency care or treatment for chronic diseases—which can cost tens of thousands of dollars—having insurance can make a big difference.
Many websites offer comparisons of different pet insurance companies, so it pays to do some research online before you choose a policy.
Is Pet Insurance Right for Me?
If you have a tight budget and worry that you won’t be able to pay the extra bills if something serious happens to your pet, you may want to consider a high-deductible plan with a lower premium to ensure your pet gets the care they need.
If you’re always willing to do whatever it takes to help your animal, insurance with better coverage and a higher monthly cost may be a good option for protecting you from unnecessary expenses. When you explore your options, make sure you are clear on the cost, coverage and limitations before you commit to a policy.
If you don’t think that pet insurance is right for you, another option is to set aside a small amount of money in a savings account each month that’s solely dedicated pet care. That way, you’ll rest easy knowing that you can afford it if your pet is sick or injured, but you’ll also be able to use that money for something else if your pet stays healthy.
With a plan in place, you can be prepared for unexpected veterinary expenses and keep your loyal, loving companion by your side for years to come.