Pet Insurance Basics Explained: Types, Coverage, and Benefits

Best Pet Insurance Types and Coverage Options for Every Pet Owner

If you love animals and unconditionally grant what they want, you might have insurance for your pet. It is the same as the insurance policies you have for yourself. Pet insurance is an insurance policy you have for your pet.

The reliable question about pet insurance is: is pet insurance worth it? 

To answer the question, let's focus on North American Pet Health Insurance Association data. The data shows that the pet insurance industry has doubled between 2018 and 2021, with its premiums exceeding $2.59 billion in the US in 2021.

The pet insurance industry is relatively young, and many families benefit as the veterinary cost of pet ownership is somewhat reduced.

What Is Pet Insurance?

Pet insurance is insurance for a pet owner for their pet, which he pays monthly or annually.

Pet insurance helps pay your unexpected veterinary bill so you can completely focus on your pet's health. Like any other health insurance, it also differs from one plan to another, and it is essential to understand how that insurance policy works before you buy one.

  • When a pet is about to be seen by a veterinarian for any severe condition, the owner pays the full amount to the vet and claims the insurance.

  • Your pet insurance plan won't pay to treat the pre-existing conditions when you buy pet insurance.

  • Your insurance won't cover any health issues your pet has when you buy a pet insurance plan and when the coverage starts.

Choose the Best Pet Insurance Types for Your Pet

Comprehensively, there are three main types of pet insurance - accident and illness, accident only, and primary wellness care. This insurance has different coverage that accordingly fulfills the need.

1- Accident and Illness Coverage Pet Insurance Type

They provide the broadest coverage for your pet. Accidents like animal bites, bee stings, broken bones, car accidents, eye injuries, fractured teeth, poisoning, etc, are covered by such insurance.

  1. Illness includes allergies, cancer, diabetes, ear infections, heart disease, kidney disease, skin disease, urinary tract infections, etc.

  2. It is also essential to understand that the plan only covers when your pet's health is affected. It doesn't cover preventive measures like annual checkups, vaccinations, etc.

  3. Accident and illness plans are the most customizable and widely available.

2- Accident Only Pet Insurance Type

The plan doesn't include illnesses and only covers accidents. The plan pays for accidental injuries and is cheaper than accidental and illness plans.

3- Wellness Coverage Insurance Type

  1. It is a type of add-on to accident and illness policy. When you go for a routine checkup of your pet, you generally get reimbursed if you have wellness coverage.

  2. It includes wellness exams, vaccination, blood, fecal or internal parasite tests, microchipping, etc., depending on your plan.

  3. Routine checkups for the pet are necessary, and wellness coverage helps you save a lot if you know you will need all the services the plan covers.

What Are the Advantages of Pet Insurance?

A pet insurance policy is a perfect thing to get because:

1- It Allows You to Pick Your Veterinarian:

As in the case of human health insurance policies, we are required to see a specific health care provider, but in a pet insurance policy, you are allowed to visit any veterinarian you like. You only need to provide the veterinary bill to your insurance company for reimbursement.

2- It Has a Wide Approach:

It means the insurance policy does not discriminate against any breed or age of the pet. You can go for pet insurance as soon as you adopt your pet. You can also insure your pet years after adoption.

3- You'll Be Relieved of Stress

Most pet insurance policies reimburse about 80% of the cost after deductibles. Also, you can choose treatment for your pet according to the medical options available.

How Much Does A Pet Insurance Cost? 

When you opt for pet insurance, you are obligated to pay a certain amount each month or year. This is added to your expense, but it is also essential to understand that this monthly expense will eventually be helpful when your pet severely needs a vet.

The cost of pet insurance depends on various conditions.

  • Type of Pet: Dogs usually cost more than cats because they are bigger, and people prefer to insure their dogs.

  • Breed: Some dogs or cats frequently get sick or injured, so their cost increases.

  • Age: The older pets are more costlier than the younger ones as they have more health issues.

  • Location: Insurance is more expensive in big cities than in suburbs in rural areas.

According to the North American Pet Health Insurance Association data, in 2021, the average annual premium for pet insurance for accident and illness coverage was $584 per year for dogs and $343 for cats.

Final words

Pet insurance is beneficial when your pet gets seriously injured or ill. They pay the unexpected veterinary bill. You can choose between three types of pet insurance policies that suit your situation. Insurance is getting more costly daily, but in the end, it is worth the cost as it prevents you from digging into an emergency fund you save for another situation.

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27 Nov, 2023


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