Is pet insurance worth it?

Pet owners are split on insurance. Some say it saved them thousands; others say their plan didn't cover what they expected. Both can be true, because plans differ a lot and the fine print decides what you get. This guide explains how pet insurance works, what it usually leaves out, and how to judge whether it's worth it for you.

What it costs

In 2024 the average U.S. accident and illness policy cost about $749 a year ($62 a month) for a dog and $386 a year ($32 a month) for a cat, according to the North American Pet Health Insurance Association (NAPHIA). About 6.4 million U.S. pets were insured that year, up about 21% from the year before. Your price depends on species, breed, age, where you live and the options you pick.

How a claim works

Most pet insurance pays you back rather than paying the vet. You pay the bill, send in a claim, and get reimbursed for the covered part. Three settings decide how much:

• Deductible: what you pay before the plan pays anything, commonly $0 to $1,000, either per year or per condition.
• Reimbursement rate: the share of the covered bill the plan pays after the deductible, usually 50% to 100%.
• Annual limit: the most the plan pays in a year. Anything above it is yours.

Example: a $2,000 covered bill with a $250 deductible and 80% reimbursement pays you $1,400 ($2,000 − $250 = $1,750 × 80%). You pay $600.

What's usually not covered

This is where most "it didn't cover what I expected" stories come from:

• Pre-existing conditions. Anything your pet showed signs of before the policy started, or during the waiting period, is generally excluded. Some insurers will cover a curable condition after a symptom-free period.
• Waiting periods. Coverage doesn't start the day you buy. Accidents usually have a short wait; illnesses and some orthopedic problems can have longer ones.
• Routine and preventive care. Checkups, vaccines and dental cleanings usually need a separate wellness add-on.
• Other common exclusions, depending on the plan: dental disease, behavior problems, hereditary or breed conditions such as hip dysplasia, and grooming.

Is it worth it?

Insurance is a bet you hope to lose. On average, insurers collect more in premiums than they pay out, which is how all insurance works. What you're buying is protection from a large bill you couldn't pay. It tends to make the most sense when:

• A sudden bill in the thousands would mean choosing between treatment and money you can't spare.
• You get it while your pet is young and healthy, before anything counts as pre-existing.
• Your breed is prone to costly problems, and the plan doesn't exclude them.

It makes less sense if you could comfortably cover a large emergency from savings, or if your pet already has the conditions you're most worried about.

Questions to ask before you buy

1. Is the deductible per year or per condition?
2. Is there an annual or lifetime limit, and how high?
3. How long are the waiting periods for accidents, illnesses and orthopedic problems?
4. How does the plan decide something is pre-existing? Can a cured condition be covered later?
5. Are exam fees, dental illness, hereditary conditions and prescription food covered?
6. Does the premium rise as my pet ages, and by how much?
7. How fast are claims paid?

Ask for the sample policy, not just the brochure, and read the exclusions section.

Whichever way you go, the everyday costs are easier to plan. Our cost of owning a dog guide breaks them down.

Not financial or insurance advice. Terms vary by insurer and state.

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