What pet insurance costs
The average annual cost for an accident and illness policy is about $584 for dogs and $343 for cats, according to NAPHIANorth American Pet Health Insurance Association . Pet Insurance in North America: State of the Industry 2022. Accessed Jun 24, 2022.View all sources. That works out to approximately $49 a month for dogs and $29 a month for cats.
If you choose an accident-only policy, the annual cost drops to $239 for dogs and $130 for cats. Such plans will cover treatment if your pet is hit by a car or swallows something poisonous, for example, but won’t pay out if he gets sick.
Premiums may vary significantly based on your pet’s age and breed, the cost of veterinary care where you live and the insurance policy you choose.
Be aware that rates tend to increase as your pet gets older and more prone to health issues. Unfortunately, if the plan gets too expensive for your budget, you might end up canceling the coverage just when your pet is starting to need it most.
To see how much rates might rise over time, we checked sample quotes from insurer Pets Best for a Labrador retriever living in Brooklyn, New York. Here are the monthly prices we found for a policy with a $5,000 annual limit, $500 deductible and 80% reimbursement level:
Dogs age |
Monthly cost |
---|---|
3 months |
$32.47. |
2 years |
$32.47. |
4 years |
$36.22. |
6 years |
$52.70. |
8 years |
$77.38. |
10 years |
$112.16. |
12 years |
$139.64. |
That may not seem too dramatic when you see the increases on a monthly basis, but here’s how your average annual premium would change over 12 years of your dog’s life:
We also got quotes from Pets Best for a domestic shorthair cat in the same ZIP code. (Rates run through age 14 to reflect a cat’s longer expected life span.)
Cats age |
Monthly cost |
---|---|
3 months |
$12.52. |
2 years |
$12.52. |
4 years |
$12.52. |
6 years |
$17.55. |
8 years |
$24.43. |
10 years |
$34.47. |
12 years |
$47.23. |
14 years |
$56.80. |
While the overall premiums are lower for cats, there’s a similarly sharp price increase as they age.
In the end, you’ll likely pay thousands of dollars for insurance if you maintain the policy over the life of your pet.
Keep in mind that these are sample numbers for one pet insurance company in one ZIP code. Your own price will vary, so it’s worth shopping around.
The cost of veterinary care
Dog owners spend an average of $458 each year on surgical vet visits and $242 each year on routine vet visits, according to a recent survey by APPAAmerican Pet Products Association . Pet Industry Market Size, Trends & Ownership Statistics. Accessed Jun 24, 2022.View all sources. Cat owners have lower annual expenses on average, spending $201 on surgical vet visits and $178 on routine vet visits. (Remember: Most pet insurance plans don’t cover routine care unless you pay extra.)
Below are the most common types of pet insurance claims for dogs and cats, according to NAPHIA.
Dogs |
Cats |
---|---|
1. Urinary tract infection. |
1. Urinary tract infection. |
2. Otitis/ear infection. |
2. Diabetes. |
3. Gastroenteritis. |
3. Vomiting/emesis. |
4. Diarrhea. |
4. Kidney disease. |
5. Dermatology/skin conditions (allergies, irritation, infections, mass). |
5. Hyperthyroidism. |
6. Arthritis. |
6. Gastroenteritis. |
7. Allergies. |
7. Diarrhea. |
8. Lameness. |
8. Upper respiratory infection. |
9. Vomiting. |
9. Respiratory. |
10. Seizure. |
10. Cancer/growth/oncology. |
11. Ophthalmology/eye conditions. |
11. Inflammatory bowel disease. |
Source: NAPHIA 2021 State of the Industry Report |
Some conditions on this list are relatively minor and inexpensive to treat, such as a urinary tract infection resolved with a course of antibiotics. But others could rack up significantly more expenses.
For example, one common skin mass in dogs is a mast cell tumor, a type of cancer. Surgery to remove one of these tumors could cost anywhere from $500 to more than $1,000. For tumors that are aggressive or hard to remove surgically, your vet may also recommend radiation or chemotherapy, which can cost thousands of dollars.
If your pet faces only minor health conditions throughout his life, you may end up paying far more for pet insurance than you get back. But if something serious goes wrong, the insurance may be well worth it.
Deductibles, limits and payouts
Most policies come with an annual deductible, the amount you’re responsible for before the insurer starts paying. Once you’ve met your deductible, most plans pay out a certain percentage of your vet bill — typically 70%, 80% or 90%. And you may also be subject to an annual maximum payout.
Say you have a $500 deductible on a plan that pays up to $10,000 per year and reimburses 80% of your costs. If your dog needs a $2,000 surgery and you haven’t put anything toward the deductible yet, your plan would pay $1,200. Here’s the math:
$2,000 – $500 deductible = $1,500. 80% of $1,500 = $1,200.
You can often customize your plan with a lower deductible or higher reimbursement rate, but your premium will go up accordingly.
Pet Insurance Is it REALLY worth it?? Here’s the sad truth…
For a pet owner, it’s a nightmare scenario. Your beloved pet is gravely ill. Treatment is an option, but it costs thousands of dollars you don’t have. You realize that in order to end the animal’s suffering, you may have to put it down. This situation even has a name. It’s called economic euthanasia.
Of course, fear of economic euthanasia is not the main reason pet owners take out insurance. Having a pet carries its own set of costs, and medical care can be a big part of them. The thinking is that, as with humans, pet health insurance may help keep expenses in check. But does it work? What does pet insurance pay for? How much does it cost? Most important, is it worth it?