Is pet insurance worth it?

Key points

• Pet insurance costs $55 per month on average for an unlimited accident and illness plan for a dog and an average of $47 per month for a cat.
• Most pet insurance plans are designed to help with large expenses like emergency surgery. You can often pay extra to cover routine care.
• Pre-existing conditions like hip dysplasia are usually not covered by pet insurance.

Your pet is part of the family, which is why it’s important to make sure it’s in good health. But accidents and emergencies happen. Buying pet insurance is one way to protect both your wallet and your pet in the case of an unexpected illness or injury. 

Here we share average veterinary care and pet insurance costs — plus what pet insurance does and doesn’t cover — so you can decide if pet insurance is worth it to you.

The average cost of pet care

On average, annual routine vet costs for a healthy pet are $225 for a dog and $160 for a cat, according to the ASPCA. 

New pet owners can expect to pay an additional $175 to $300 for initial medical costs like vaccines and another $150 to $300 to have your pet spayed or neutered (but contact your local animal shelter to see if low-cost options are available in your area). 

Prescriptions, like heartworm or flea medication, can cost an additional $185 per dog and $140 per cat. 

Veterinary costs can quickly rise if your pet has an illness or an emergency, which is why pet insurance can be a good idea even if your pet is currently healthy. Treatments for bladder infections, broken bones, gastrointestinal issues and illnesses can easily cost thousands of dollars.

Complex and emergency care veterinary costs

PROCEDURE	DOGS	CATS
Cancer	$4,137	$3,282
Cancer treatment-chemotherapy	$4,000	$4,000
Stomach foreign object	$3,262	$2,955
ACL/CCL surgery (per knee)	$1,000-3,000	–
Diabetes	$2,892	$1,634
Femoral Head Ostectomy surgery (FHO)	$1,200-$2,500	–
Hernia surgery	$700-$2,500	–
Ear hematomas	$300-$2,500	–
Broken bone	$2,371	$2,257
Amputation	$1,250-$1,850	–
Tumor removal	$300-$1,600	–
Heart murmur	$1,140	$1,440
Arthritis	$724	$490
Dental disease/periodontitis	$519	$768
Bladder/urinary tract infection	$424	$1,053
Ophthalmology	$319	$227
Kidney disease (feline)	–	$1,318

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^{Source: Pets Best. Based on claims data.}

How much does pet insurance cost? 

Pet insurance costs $55 per month on average for an unlimited accident and illness plan for a dog and about $47 per month for a cat. But how much you’ll pay for your pet will depend on several factors.

Pet insurance costs vary based on the plan you buy (along with plan variables you select, such as deductible amount, annual limit and reimbursement percentage), plus your pet’s age, breed and species. Where you live will also impact your premium, as vet expenses are higher in some areas. 

Annual deductibles typically range from $100 and $500. Some companies offer deductibles as low as $0 and as high as $1,000. In general, the lower the deductible you choose, the higher your premium.

Your plan’s annual coverage limit and reimbursement percentage will also affect how much you pay for pet insurance. 

• Annual limit is the most the insurance company will pay toward covered veterinary care, ranging from $2,000 to unlimited depending on your plan. The more coverage you choose, the higher your premium will be. 
• Percentage reimbursement is usually between 70% and 90%, but can be as low as 50% or as high as 100% depending on your plan. The more the company reimburses, the more you’ll pay for pet insurance.

What does pet insurance cover?

When buying pet insurance, you’ll decide between basic accident-only coverage or a more comprehensive accident and illness plan. According to the North American Pet Health Insurance Association (NAPHIA), 98% of pet insurance policies written in 2017 were for accident and illness insurance which may include a wellness plan, while 2% were accident-only.

Accident-only plans cover accidents like treatment for a broken bone if your dog gets hit by a car, but don’t cover treatment for illnesses. 

Accident and illness plans cover both accidents and medical issues, but typically do not cover pre-existing conditions. 

Most pet insurance plans do not include routine wellness visits, but many many companies allow you to add on wellness coverage to your accident and illness plan.

Read more: More pets, fewer vets bring strain on veterinary profession

What isn’t covered by pet insurance?

Pet insurance plans often have exclusions, such as:

• Pre-existing conditions.
• Conditions that occur during the policy waiting period.
• Food, dietary and nutritional supplements.
• Grooming.
• Pregnancy and birth.
• Wellness exams, unless you opt to pay extra for wellness benefits.

Some companies may also have caps for ongoing, chronic illnesses like cancer or hip dysplasia, so make sure to compare plans thoroughly before buying. 

Alternatives to pet insurance

If you’re on the fence about purchasing health insurance, there are alternatives. 

Emergency fund Pawp will reimburse one emergency vet bill up to $3,000 per year, for a $24 monthly fee. 

If you want to forego pet insurance altogether, consider creating a pet savings account. For the same amount you’d put into an insurance plan, you can set aside money every month for an emergency fund for your pet. 

If your pet has a medical emergency before you have enough in your pet’s savings account, you have other options. CareCredit is a credit card you can use for your pet’s care, including routine and emergency veterinary expenses. Scratchpay is a financing option that’s like a personal loan. You can use it for personal and pet-related costs.

Is pet insurance worth it FAQs