Introduction to Pet Insurance
Pet insurance is similar to health insurance, but for your pet. You pay a monthly fee, known as a premium, to keep the policy active and ensure your furry friend is covered. This type of insurance can help you manage the costs of unexpected veterinary bills, allowing you to provide the best possible care for your pet without breaking the bank.
What Does Pet Insurance Cover?
Pet insurance policies can vary in what they cover. There are two main types of policies:
- A pure accident policy, which covers accident-related injuries such as those from a motor vehicle accident, a torn ligament, food poisoning, and a bite from another animal.
- An accident and illness policy, which covers the accidents listed above and other types of emergencies, such as illnesses and diseases.
If your pet needs medical care, you take them to the vet as usual. As long as the reason for the visit is covered by your insurance policy, you only pay your deductible and any co-pay, and the insurer will cover the rest (or pay up to the coverage limit).
However, some conditions can be excluded from coverage. Pet insurance usually does not cover existing conditions, older pets, specific breeds, or alternative treatment methods. It also typically does not cover preventive care and dental work, unless you purchase a wellness add-on.
Advantages and Disadvantages of Pet Insurance
Before making a decision that affects your finances, it’s essential to consider the advantages and disadvantages of pet insurance. On the one hand, pet insurance can provide peace of mind and financial protection in case of unexpected veterinary bills. On the other hand, the monthly premiums can add up, and you may not use the insurance if your pet stays healthy.
The Cost of Pet Insurance
Several factors determine how much you’ll pay for pet insurance each month, including:
- The breed, location, age, and medical history of your pet
- Factors you can control, such as the deductible, annual coverage limit, and percentage of costs reimbursed by the insurer
Remember that as your pet gets older, the costs of care and insurance increase. Some insurance companies even set a maximum age limit for coverage. So, if you enroll your pet while it’s young and healthy, you can unlock cheaper prices.
According to the North American Pet Health Insurance Association (NAPHIA), the average monthly premiums in Canada were:
- $22.46 for dogs and $18.47 for cats for an accident-only policy
- $89.18 for dogs and $45.86 for cats for an accident and illness policy
The more coverage and benefits you get, the higher the price tag. Therefore, it’s crucial to weigh the pros and cons to decide whether buying insurance is worthwhile for you.
Why is Pet Insurance Getting More Expensive?
The cost of pet insurance has increased steadily over the past ten years. The average annual increase in accident and illness insurance was 6.5% for dog owners and 15.24% for cat owners.
Inflation, increased wages for veterinary staff, and higher medical costs have contributed to the increase in pet insurance premiums since the pandemic. However, higher costs are also driven by advancements in medical care for pets. Veterinary clinics are increasingly able to treat life-threatening diseases such as cancer and other conditions, but these treatments can be expensive.
Before deciding whether to take out insurance or not, pet owners must weigh the possibility of paying thousands of dollars out of pocket for medical procedures against the current monthly premiums.
How to Keep Pet Insurance Costs Low
There are several strategies to keep the cost of pet insurance low:
- Buy around and compare policies. Insurers each have unique offers and calculate premiums differently. Get several quotes to find the cheapest price, but make sure you’re comparing similar coverage.
- Choose a higher deductible. The higher your deductible, the lower your premium. However, ensure you choose a deductible that you can afford to pay if your pet needs urgent care.
- Choose a lower annual limit. This is the maximum amount of money that your pet insurance company will pay you each year. Once you’ve reached this threshold, you’re on the hook for additional pet costs.
- Ask for discounts. If you have multiple pets, it’s worth asking whether you can get a discount from your provider to insure them all. Usually, you have to register each pet and pay separate premiums.
Conclusion
Pet insurance can be a valuable investment for pet owners, providing financial protection and peace of mind in case of unexpected veterinary bills. However, it’s essential to consider the pros and cons, as well as the costs, to decide whether buying insurance is right for you and your pet. By understanding what pet insurance covers, the factors that affect the cost, and how to keep costs low, you can make an informed decision that works best for you and your furry friend.