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Is Pet Insurance Worth the Cost?

Pet insurance can be expensive, but you might be glad to have it if your best pal gets seriously sick or injured.

Rated 5/5 on NerdWallet

Embrace

Many ways to customize your coverage and monthly rate
Reimbursement amounts up to 90%
Covers curable pre-existing conditions
Discounts available, including 10% multi-pet discount

See Details

on Embrace's website

Healthy Paws

Rated 4/5 on NerdWallet
Simple plan that covers accidents and illnesses with no annual limit
Many claims are processed within two days
Deductibles starting at $100

See Details

on Healthy Paws's website

Spot

Covers what others don’t: prescription food, microchips, and behavioral therapy
Offers preventative treatment and screenings plans
No upper age limit for coverage of older pets
10% multi-pet discount

See Details

on Spot's website

Lemonade

Easy claims submission process through the app
Quick claims payout, with about 50% paid immediately
5-10% discounts available for some customers
Donates a portion of profits to pet charities

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on Lemonade's website

ASPCA

Generous coverage options, including wellness and accident-only plans
Shorter waiting periods than most insurers
10% discount for veterinarians and multiple pets
In addition to cats and dogs, horse plans are also available

See Details

on ASPCA's website

Fetch

Ideal if you want a lot of coverage with a high reimbursement rate
Covers what other insurers may not: cancer, acupuncture, and behavioral therapy
Offers $1,000 in boarding fees if owner is hospitalized
Pays up to $1,000 for virtual vet visits

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on Fetch's website

Pumpkin

Rated 4.5/5 on NerdWallet
10% discount on additional pets you insure
Covers dental illnesses and some pre-existing conditions
Annual limits range from $7,000 to unlimited

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on Pumpkin's website

MetLife

In most states, your deductible reduces each year without a claim
Covers what others don’t: alternative therapies and holistic medicine
No waiting period for accident coverage
24/7 vet chat service available

See Details

on MetLife's website

What pet insurance pays for

So what do all those premiums get you? Though insurance can be a godsend if your pet is facing an expensive diagnosis, your plan likely won’t reimburse every dollar you spend at the vet.

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 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.

What’s covered and what’s not
Even if you find a plan with no annual limit and 100% reimbursement, it still might not pay you back for every veterinary expense.

For example, most plans won’t cover spay or neuter surgery unless you’ve bought an add-on for wellness and preventive care. The same goes for vaccinations, annual checkups and teeth cleaning. Insurance is designed to cover unexpected expenses, not routine costs associated with pet ownership.

But pre-existing conditions are perhaps the most important exclusion in just about every pet insurance plan. Pet insurance generally covers only new injuries or illnesses, not conditions the animal has before the policy takes effect. So don’t try buying pet insurance to pay for your cat’s chemotherapy after they were diagnosed with cancer — it probably won’t be covered.

That’s why pet insurance may be more valuable for pets who are young and healthy than those who already have a chronic condition or two.

Pre-existing conditions can also be a problem if you let your policy lapse. Say you’re out of work for a few months and can’t pay Fluffy’s premiums. If you reinstate their coverage later, all their previous ailments will count as pre-existing conditions, even those the earlier plan covered.

Rated 5/5 on NerdWallet

Embrace

Many ways to customize your coverage and monthly rate
Reimbursement amounts up to 90%
Covers curable pre-existing conditions
Discounts available, including 10% multi-pet discount

See Details

on Embrace's website

Alternatives to pet insurance

If you’d rather not buy pet insurance, you can try one of the following ways to pay for your furry pal’s care.

Self-funding
Instead of paying a monthly premium to a pet insurance company, you could contribute to a high-yield savings account for vet expenses.

The advantage of this strategy is that if your pet stays healthy, you’ll still have the money to use for something else. The downside is that you might not have enough saved if your puppy has an expensive accident three months after you bring them home.

Financial assistance
If you find yourself unable to afford care for your pet, you still have options. Your vet may be willing to work with you on a payment plan, or you can look for another clinic that charges less for the treatment your pet needs.

You can set up a crowdfunding campaign to help pool the support of friends and family. Charitable organizations may also be able to provide grants or other assistance. The Humane Society of the United States has a useful list of resources.