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Pet insurance: what to know


Pet health insurance functions in much the same way as a standard insurance policy: premiums are paid to ensure protection against certain perils. Pet coverage allows you to mitigate the risk of being on the line for the full cost of veterinary care, which can be surprisingly expensive. Without such a policy, many pet owners find themselves in a tough situation. Many face the choice of going into personal debt or having to reject treatment due to affordability, which can put a pet’s life at risk. 

Pet insurance is one of the best ways to ensure your pet's health and wellness. Don't be caught off-guard when the unexpected arises. Peruse our guide to pet insurance coverage below to see which plan might be best for you and your pet.

How does pet insurance work?

Just like a standard car, renters or home insurance policy, pet insurance requires monthly payments. In exchange for these premiums, the pet receives coverage up to a preset amount. When a claim is made to cover all or some of the pet’s bills from a licensed veterinarian — depending on the policy — reimbursement will be furnished to you.

Most pet insurance policy terms are 12 months and may include an annual limit to claims that are made. As with health insurance, there may be a waiting period after initial enrollment before the policy takes effect.

Similar to when you sign up for a life insurance policy, a number of factors will establish the cost and type of coverage underwritten to your pet. This can include your pet's species, breed and age. Most pet insurance companies hesitate to provide coverage to older animals, or may not provide robust coverage options past a certain age. The breadth of coverage available for your pet will be noted in the policy documents and should be studied carefully.


Pet insurance claims

Making a claim is often different than with car or home insurance policies. In general, pet insurance reimburses you for veterinary bills as opposed to paying your vet directly, though some carriers may provide that option. Many plans allow policyholders the choice of co-insurance in certain percentages, namely 70%, 80% and 90%. Co-insurance is not the same as a co-pay, and simply reflects the portion of the bill that will be paid by your insurer, not including your deductible.

For instance, if your co-insurance plan is set at 80% with a $100 deductible, your out-of-pocket expenses for a $2,000 treatment claim would be $500 ($2,000 x 0.8 - $100).


Pet insurance deductibles

Most pet insurance plans require a deductible, which is the portion of the costs that you are responsible for covering before your insurance company kicks in. Pet insurance deductibles typically run anywhere from $100 to $500. Typically, the higher your deductible, the lower your monthly rates. It's important to remember, however, that a higher deductible means that you must pay more out-of-pocket in the event of a claim.

Many pet insurance companies have an annual deductible, meaning that you do not have to pay beyond that amount in a single policy term. 


Annual limits

Most pet insurance plans will have an annual limit to what they will pay for your pet's medical care. These limits can range anywhere from $5,000 to upwards of $100,000 per year. You can work with your insurance agency to set this limit at the onset of your policy.

Types of pet insurance

There are many different types of pet insurance policies, each providing a different level of coverage. Most pet insurance companies have different levels of coverage you can choose from.

Below are the most common policy types and some of the situations they cover.

  • Comprehensive: While the name may vary, this type of comprehensive policy is robust and covers your pet with very few exclusions. Such policies are likely to cover hereditary conditions, vaccinations and illnesses such as cancer.
  • Emergency only: This policy type only provides coverage if a pet is injured in an accident — like broken bones. Illness coverage, care for chronic and congenital conditions and routine check-ups aren’t covered. This type of policy is most often used to keep high, unexpected costs down after an accident or injury.
  • Accident and illness: This policy type will cover emergencies and costs related to illness.
  • Wellness plan: This covers check-ups, routine visits and vaccinations, but may not cover illness or emergency care.

Pet-specific insurance coverage

Pet insurance most commonly covers dogs and cats. Pet insurance coverage for dogs and cats is similar, though there are some differences in cost. Dog insurance is generally more expensive than coverage for cats or other common pets.

Pricing and coverage depend on the breed of dog insured. Small dogs are generally cheaper to insure than are larger dogs. Select breeds are more expensive to insure because of hereditary conditions (like hip dysplasia) that are more common among them.

Cat insurance is typically cheaper than coverage for dogs. Coverage is much the same as it is for dogs, but may explicitly cover ailments that are more common to cats such as feline immunodeficiency virus (FIV) or feline lower urinary tract disease (FLUTD).


Insurance for exotic pets

While the pet world is dominated by dogs and cats, there are a number of other types of pets available. Most of these animals are eligible for some type of pet insurance. Some of the most common types of animals covered by pet insurance include the following:

  • Reptiles (iguanas, snakes, etc.)
  • Potbelly pigs
  • Ferrets
  • Rabbits
  • Birds
  • Various rodents

It’s important that certain species, such as most birds, may face certain restrictions or exclusions. Therefore, it’s important to check with your insurer to determine what is and is not covered.

Which type of pet insurance should I choose?

The type of policy that you choose depends on a number of factors. Is your dog or cat's breed prone to hereditary conditions that may require expensive treatments? Are you comfortable will a policy that only covers accidents?

Medical treatments for pets can result in expensive bills. Which pet insurance policy is the best choice comes down to how much you are willing to pay in the event expensive care is required for your pet.

Some plans may cover emergency care only. This may be good for many pet owners, but it won’t cover an occasional illness or other routine costs. For example, vaccines are required for many pets but aren’t covered on an emergency-only plan.

Choose the level of coverage that allows you to afford the monthly premiums while safeguarding your pet’s health.

Choose the level of coverage that allows you to afford the monthly premiums while safeguarding your pet’s health.

How much pet insurance costs

Pricing for pet insurance policies is based on a number of factors, primarily those specific to your pet. On average, dogs are more expensive to insure than cats. However, your pet’s age and breed can mean that prices can vary widely even for the same species. In general, the following factors are most likely to affect your pet insurance premiums:

  • ZIP code: More densely populated areas tend to have higher rates, as do areas where care is more expensive, i.e., California.
  • Species: The species of pet you own can play a big part in what you pay. Dogs, for instance, are often more expensive to insure than cats or many other animals.
  • Breed: Different pet breeds can also affect your premiums, as some may be more prone to certain types of illness or other medical conditions.
  • Age: Older animals cost more to insure.

The insurance company and level of coverage that you choose for your pet will also have a big impact on your premiums. Just like car insurance companies, pet insurers can vary dramatically in what they charge for similar coverage due to different underwriting practices.


Average yearly costs of pet ownership

The yearly costs pet owners face are most often dependent on the type of animal owned. Below you'll find a breakdown of the average yearly costs of owning a dog or a cat based on a study conducted by the ASPCA. These costs include a basic form of pet insurance, but the coverage levels are not clear.

According to the ASPCA, the average yearly costs for owning a cat are about $809 while the average annual costs of owning a dog are the following:

  • Small breed: $737
  • Medium breed: $894
  • Large breed: $1,040

What pet insurance covers

Pet insurance plans vary widely in what they cover. Pet owners have a choice in the breadth of situations and ailments that can be covered.

An accident-only policy will cover emergency injuries and operations, but won't cover an illness or a hereditary condition that develops. Similarly, some companies provide add-ons such as routine care and vaccinations. Have a look at the list below to see some of the most common items covered by pet insurance:

  • Vet visits
  • Exam fees
  • Emergency care
  • Hospitalization
  • Routine care
  • Checkups
  • Preventive care
  • Costs to spay or neuter

Some companies provide even more expansive coverage options, including treatments such as acupuncture, prescription foods and diagnostic tests for behavioral issues. 

What isn't covered by pet insurance

You can expect even the most robust of policies to have certain exclusions. While this list will differ depending on which plan and insurer you use, the following are some of the most common exclusions for most pet insurance policies.

  • Cosmetic treatments
  • Pre-existing conditions*
  • Costs for breeding
  • Dental cleaning
  • Boarding or training costs

*Some pre-existing conditions may be covered as long as the issue is cured and your pet remains symptom-free for a set period of time.

Other insurance types that cover pets

Other insurance policies that you currently carry may provide some protection for your pets or their actions. Have a look at how your car, home or renters policy may currently provide protection. 


Car insurance 

If your pet is injured in a car accident that is your fault, it may be covered under your car insurance policy, but only if you carry collision coverage and it is explicitly stated on your policy. Progressive, Metromile and Erie provide some amount of coverage for pets in their policies, but this isn’t universal among all insurers.

If the accident was caused by another driver, claims can be made to their insurance company to cover their injuries. Most insurance companies treat pets as owned property in such circumstances and they will be covered by the at-fault party's liability coverage.


General liability insurance

Home and renters insurance policies provide general liability coverage that can extend to the actions of your pet (in many circumstances). This most commonly applies to injuries that your pet causes to others, such as a dog biting someone while out on a walk. Learn more about how home insurance covers pets.

Keep in mind that many homeowners and renters insurance companies have a restricted breeds list that they won’t cover. This list usually includes breeds such as Pit Bulls and Rottweilers.

Pet insurance FAQs


Does pet insurance cover vaccinations?

Sometimes. This depends on your insurer and the level of coverage that you choose. If you have an accident-only policy, it won't cover getting your pet vaccinated or spayed/neutered.


Does pet insurance cover spaying or neutering? 

It depends. Many companies will offer plans with this as an option, but they are typically the more comprehensive plans. These tend to be more expensive. Considering that most plans require a deductible anyway, it may be in your best interest to pay for such a procedure out-of-pocket.


Does pet insurance cover exotic animals?

Rare or exotic animals may not be covered under standard pet insurance policies. It’s important that you inquire with your insurer about the eligibility of such animals.


Can you cover multiple pets on the same insurance policy?

Yes, many pet insurance companies allow multiple pets to be insured under the same policy. Most insurers will even off a multi-pet discount, usually around 5-10%.


What are the best pet insurance companies?

There are a growing number of companies offering insurance coverage for pets. Some of the most popular options include ASPCA, Nationwide Pet coverage, Lemonade and Embrace. Nationwide and Lemonade may even provide you an option to pair other coverage with your pet insurance, (e.g. bundled with renters insurance, bundled with home insurance or bundled with car insurance).

Is pet insurance worth it?

When looking for a pet health insurance policy, it’s important to balance your pet’s needs with what you are able to pay in the event that expensive care is needed. Sadly, the price of some operations or treatments is so cost-prohibitive to many pet parents that they simply aren’t able to afford them without going into debt. If you would be unable to pay in these cases, a more comprehensive plan may be needed. 

Health care coverage for your pets can help alleviate unexpected costs and give you peace of mind that your beloved furry family members will get the best care from a licensed vet. If you’re looking for a pet insurance quote, we've partnered with Embrace — Forbes rated number one pet insurance provider — to cover your pet when unexpected accidents and illnesses happen.

Get a quote with Embrace.

About The Zebra

The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.

  • The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
  • The Zebra’s insurance content is not subject to review or alteration by insurance companies or partners.
  • The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
  • The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.