Why Is Pet Insurance So Expensive? Is It Worth It?

Now, let’s talk about what pet insurance brings to the table. It’s like a safety net for your fluffy pal’s medical expenses. Think cancer treatments, emergency care, prescription meds, and surgeries all those hefty bills can be partially reimbursed.

And here’s the real kicker: pet insurance can actually save a life in dire situations. Imagine this heart-wrenching scenario: without insurance, an animal might face euthanasia because their owner can’t afford the necessary treatment. Pet insurance swoops in as the hero, offering a lifeline when it’s needed most. However, it’s essential to weigh the odds. If your fur baby rarely falls ill, you could end up shelling out thousands of dollars in premiums without reaping many benefits.

So, the million-dollar question: is pet insurance worth it?

SEE ALSO: What Is the Best Age to Get Pet Insurance?

Why Is Pet Insurance So Expensive? Is It Worth It?

Why Is Pet Insurance So Expensive? Is It Worth It? Pet insurance can definitely come with a hefty price tag, and there are several factors that contribute to its expense. One major factor is the rising costs of veterinary care. As medical treatments and technologies advance, veterinary services have become more specialized and sophisticated, leading to higher fees.

Comprehensive coverage also plays a role in the cost. Pet insurance policies often cover a wide range of conditions and treatments, including pre-existing conditions, which can drive up the premiums. Factors such as the breed and age of your pet also come into play when determining the cost of coverage.

However, despite the expense, pet insurance can be a real lifesaver when it comes to offsetting unexpected and significant veterinary bills. Take, for instance, the cost of cancer treatment or a broken bone, which can easily amount to thousands of dollars. Without insurance, you would have to dig deep into your own pocket to cover these expenses.

To determine whether pet insurance is worth it for you, you’ll need to weigh the monthly cost of the premiums against the potential vet expenses. In many cases, the amount you pay in premiums can be significantly lower than the reimbursement you receive for a major vet bill. The primary purpose of pet insurance is to provide financial protection against these costly veterinary bills.

It’s important, though, to carefully review the terms and conditions of the policy. Pet insurance policies often have annual limits, coverage exclusions, and waiting periods. Understanding what exactly is covered and what isn’t is crucial.

Let’s consider an example to illustrate the value of pet insurance. Suppose you’ve been faithfully paying premiums for three years, totaling $2,052. Suddenly, your dog swallows a small toy, resulting in $4,000 in vet bills. With a $500 deductible and a 90% reimbursement level, your out-of-pocket cost for the incident would be $850 ($500 deductible + 10% of $3,500).

Adding up the premiums and the toy incident, you’ve paid $2,902 in total. Without pet insurance, you would have had to foot the entire $4,000 vet bill. By having pet insurance, you’ve saved approximately $1,100.

As Walter Haugland, vice president of marketing of Pets Best, emphasizes, it’s crucial to remember that four out of five pets will experience an unexpected emergency. The timing of such emergencies is unpredictable. Pet insurance provides a safety net when you least expect it, protecting you from the financial burden of unexpected veterinary expenses.

While it may be nearly impossible to plan for the unexpected, pet insurance offers that peace of mind and financial support when you need it most.

SEE ALSO: 10 Most Common Pet Insurance Claims

Should I Get Pet Insurance?

When considering whether pet insurance is worth it, take a moment to reflect on a few important questions:

Firstly, how much are you prepared to cover out-of-pocket for veterinary bills? It’s essential to have a clear idea of your financial limits and what you can comfortably afford in case of unforeseen circumstances.

Secondly, imagine a scenario where your pet requires costly veterinary care, such as treatment for an accident or a serious illness like cancer. How would you handle those expenses? This is an important consideration to gauge your preparedness and ability to handle unexpected financial burdens.

While you might currently have a rough estimate of the amount you’d be willing to pay for emergency vet bills, it’s worth noting that your perspective might shift dramatically in a life-or-death situation. As Walter Haugland expressed on Forbes, when faced with the well-being of your beloved pet, you might find yourself willing to stretch your budget beyond what you initially imagined.

In the grand scheme of things, purchasing pet insurance can provide you with peace of mind and a range of options. It enables you to make the best possible decisions for your pet’s care without the looming financial risks. As Haugland aptly puts it, pet insurance empowers pet owners, offering them the reassurance they need to make informed choices and ensure their pets receive the optimal care they deserve.

SEE ALSO: What Factors Will Affect Pet Insurance Premium?

Average Treatment Costs for Pets

To truly assess the value of pet insurance, it’s essential to have a clear understanding of the potential vet bills you could face. Here are some average treatment costs for various conditions, provided by Pets Best:

For dogs:

• Cancer: $4,100
• Ingested foreign objects: $3,500
• Diabetes: $2,700
• Broken bone: $2,700
• Heart murmur: $1,200
• Arthritis: $700
• Dental disease: $600
• Bladder infection/UTI: $400
• Eye conditions: $300

For cats:

• Cancer: $3,800
• Ingested foreign objects: $3,400
• Diabetes: $1,900
• Broken bone: $2,300
• Heart murmur: $1,400
• Arthritis: $500
• Dental disease: $800
• Bladder infection/UTI: $1,100
• Eye conditions: $260
• Feline kidney disease: $1,300 (for cats only)

It’s worth noting that these figures are averages based on claims costs from 2017 to 2021. Furthermore, it’s important to be aware that the cost of pet treatments is steadily increasing. For instance, according to Pets Best data, the year-over-year cost of treating a broken bone has risen by 16% for dogs and 6% for cats.

Additionally, certain pets may be predisposed to hereditary conditions that can significantly impact their cost of care. For example, large dog breeds such as border collies, Labrador retrievers, Great Danes, and German shepherds are more susceptible to hip dysplasia. Treating this condition can range from $3,500 to $7,000, and in some cases, even more, depending on the severity of the situation.

Considering the potential treatment costs and the upward trend in expenses, pet insurance becomes increasingly valuable. It offers a layer of financial protection and peace of mind, particularly for pet owners whose furry companions may be more prone to specific health issues. By having insurance coverage, you can mitigate the impact of these high treatment costs and provide your pet with the care they need.

SEE ALSO: How to Choose The Right Pet Insurance?

What Does Pet Insurance Cost?

According to an analysis conducted by Forbes, the average cost of pet insurance is approximately $528 per year for dogs and $360 per year for cats. This calculation is based on a policy with $5,000 in annual coverage, a $250 deductible, and a 90% reimbursement level.

Here’s a breakdown of the average monthly costs for different coverage options:

For dogs:

• $5,000 annual coverage maximum: $44 per month
• Unlimited annual coverage: $57 per month

For cats:

• $5,000 annual coverage maximum: $44 per month
• Unlimited annual coverage: $56 per month

These figures are based on a policy with a $250 deductible and a 90% reimbursement level. The analysis utilized data from Petinsurer.com to derive these cost estimates.

Understanding the average pet insurance costs can help you evaluate the financial commitment involved. It’s important to consider your pet’s specific needs and the potential costs of veterinary care when determining if pet insurance is a worthwhile investment for you and your furry friend.

The costs of pet insurance can vary based on several factors, including:

1. Pet’s breed: Certain breeds may be more prone to specific health conditions, which can affect the cost of insurance. Generally, larger dogs tend to have higher premiums due to their increased susceptibility to certain ailments.

2. Pet’s age: As pets get older, they are more prone to accidents and illnesses. Consequently, insurance premiums may increase as your pet ages.

3. Pet’s gender: In some cases, female pets may be considered lower risk, resulting in lower insurance premiums compared to their male counterparts.

4. Location: The cost of veterinary care can vary based on geographic location. If veterinary costs are higher in your area, it may lead to higher insurance premiums.

These factors contribute to the variation in pet insurance costs, and it’s important to consider them when evaluating the potential expenses associated with insuring your pet.

By understanding how these factors influence pricing, you can make a more informed decision regarding the affordability and value of pet insurance for your specific circumstances.

SEE ALSO: What Does Pet Insurance Cover and Not Cover?

What Does Pet Insurance Cover?

Pet insurance plans typically operate on a reimbursement basis, which means you pay the veterinary bills out-of-pocket and then submit a claim to the insurance company for reimbursement. Unlike human health insurance, pet insurance does not have provider networks, so you have the flexibility to visit any licensed veterinarian of your choice.

Accident and illness pet insurance plans cover a wide range of conditions and treatments. Some common examples of what these plans typically cover include broken bones, toxic ingestion, dental illnesses like gingivitis, chronic conditions such as diabetes, breed-specific conditions like hip dysplasia, emergency care, surgery, diagnostic testing, hospitalization and surgery, and prescription medications.

It’s important to note that there are also accident-only pet insurance plans available, which specifically cover veterinary expenses related to accidents such as torn ligaments or ingestion of poisonous substances. However, they do not cover veterinary expenses related to illnesses like ear infections or cancer.

Additionally, some pet insurance plans offer the option to add wellness or routine care coverage as an add-on. This coverage typically includes expenses related to routine check-ups, vaccinations, microchipping, and flea/tick prevention. It can be beneficial for pet owners who want coverage for preventive care expenses.

By understanding the coverage provided by pet insurance plans, including the conditions and treatments covered, as well as any additional wellness options, you can make an informed decision about the type of coverage that best suits your pet’s needs

SEE ALSO: How Do I Know If I Am a Beneficiary of a Life Insurance Policy

What Does Pet Insurance Not Cover?

You’re absolutely right! There are certain exclusions that are commonly found in pet insurance policies. These exclusions may vary depending on the insurance provider and the specific policy. Here are some common exclusions you may come across:

1. Experimental treatment: Pet insurance typically does not cover treatments that are considered experimental or investigational and not within the accepted standard of care by the veterinary medical board in your state.

2. Food, dietary, and nutritional supplements: Generally, pet insurance does not cover the expenses related to regular food, dietary supplements, or nutritional needs of your pet. However, some plans may cover prescription food and supplements if they are part of a specific treatment plan.

3. Grooming: Services such as routine bathing, dips, nail trims, and shampoos are usually not covered by pet insurance. These are considered as grooming expenses and are the responsibility of the pet owner.

4. Non-veterinary expenses: Pet insurance typically does not cover non-veterinary expenses such as licensing fees, certifications, compliance with government regulations (e.g., dog licenses), record access or copying, and waste disposal services.

5. Pre-existing conditions: Pre-existing conditions refer to illnesses or injuries that your pet had before the coverage started. Most pet insurance policies do not cover pre-existing conditions. If your pet has a pre-existing condition, it is usually excluded from coverage.

However, some insurance companies may have different policies regarding pre-existing conditions. For example, some plans may cover “curable” pre-existing conditions if your pet has not shown signs or symptoms of certain conditions for a specific period, like 180 days. If the condition recurs after the specified period, it is considered a new problem and may be eligible for coverage.

It’s essential to carefully review the terms and conditions of a pet insurance policy, including any exclusions, before purchasing a plan. Understanding the exclusions can help you determine the extent of coverage provided and make an informed decision based on your pet’s specific needs.