Pet health insurance is a relatively new industry, with the famous collie, Lassie, receiving the first pet insurance policy issued in the United States in 1982. Today, the pet insurance marketplace in North America comprises about 20 companies, with an annual growth rate of 23.4% over the past five years, which is great news for pets. However, only about 3.45 million pets—out of 94.2 million cats and 89.7 million dogs—were insured at the end of 2020. Dogs make up the majority of insured pets in the United States, with an approximate split per year of 82.9% insured dogs versus 17.1% insured cats.
Since so few pets are insured, our Memorial Villages Animal Hospital team wants to spread the word about the importance of pet insurance for providing care for your furry pal. Read on to learn answers to frequently asked questions about pet insurance.
Question: What types of pet insurance policies are available?
Answer: Pet insurance policies are typically divided into three categories—accident-only, accident-and-illness, and comprehensive plans. Accident-only policies cover pets who routinely encounter mishaps, like broken bones and poisoning, plus you can add illness coverage so that your pet is also covered for acute sickness, like vomiting and diarrhea or a respiratory infection.
Some insurance policies cover a wide variety of veterinary services, including accidents, illnesses, and wellness and preventive care. These policies may cover annual physical exams, vaccinations, parasite prevention, dental care, and spaying or neutering. Add-on policies can also provide coverage for various specialist treatments, such as holistic veterinary care.
Q: How does pet insurance work?
A: In a nutshell, pet insurance works either by reimbursing you, or paying your veterinarian directly, for eligible pet care expenses. However, some restrictions, such as waiting periods and pre-existing conditions, typically apply. Some insurance providers may not provide coverage until after a 14- or 30-day waiting period, depending on the policy. No insurance provider covers pre-existing conditions, although a grey area exists—for example, a pet who has previously had a gastrointestinal illness that caused vomiting and diarrhea, may be covered for another episode, despite the condition being pre-existing. Read the insurance policy fine print carefully to determine the definition of a pre-existing condition, to ensure your pet will be covered.
Q: How do I weigh deductibles against premiums?
A: Like most insurance policies, low deductibles are paired with high premiums, and vice versa. Evaluate what is best for your budget and your pet’s care needs to determine if a higher out-of-pocket monthly premium is better than a lower one. Remember, a low monthly premium generally comes with a high deductible that you must meet before you will be reimbursed.
Q: What are payout caps?
A: You should pay attention to payout caps when choosing your pet insurance policy. Typically, policies include two types of payout caps—an annual or lifetime limit, or a per-incident limit. For example, if your dog often eats things they shouldn’t and develops vomiting and diarrhea, a per-incident limit would be a better option. With an annual limit, if your dog has several bouts of vomiting and diarrhea that require veterinary care, you could quickly reach the payout cap before the year is over.
Q: How does reimbursement work for pet insurance?
A: Reimbursement varies from provider to provider, so determine your needs before choosing a policy. If you need a policy that pays your veterinarian directly at your appointment, whether you go to an emergency facility, specialty center, or your Memorial Villages Animal Hospital veterinarian, choose a provider who offers a veterinarian-direct payment policy. Otherwise, you will need to keep funds available to cover pet care expenses at the time of service, and then be prepared to wait a few days to several weeks for reimbursement.
Q: How do I know if my pet will benefit from pet insurance?
A: The younger and healthier your pet, the more pet insurance will be effective. Older pets with multiple pre-existing conditions may not be eligible for coverage, and if they are, the policies will likely be expensive. Regardless, the best thing you can do for your pet’s continued health is to purchase a pet insurance policy, preferably the day you bring them home.
Before you can enroll your pet with a pet insurance provider, they’ll likely need a wellness exam. Get your furry pal covered for accidents, illnesses, and injuries by scheduling their physical exam appointment with our Memorial Villages Animal Hospital team.
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