Everything in your home is covered by an insurance policy, from your vehicle to yourself. But what about your pet? If your four-legged friend does not have their own health insurance policy, they’re not alone. An overwhelming majority of American pets are not covered by insurance, despite rising veterinary care costs. 

If you’ve been on the fence about securing an insurance policy for your pet, understand a potential plan’s benefits and shortcomings before deciding. To help guide you, our Pets & Friends Animal Hospital team shares pet health insurance pros and cons.

What is pet health insurance?

Pet health insurance is a type of insurance coverage that helps offset pets’ veterinary care costs. Similar to health insurance for people, pet health insurance typically covers a portion of the expenses associated with medical treatments, surgeries, medications, and other veterinary services.

Pet owners pay a monthly premium to the insurance provider, and in return, the insurance company covers a percentage of eligible veterinary expenses. The coverage, benefits, and limitations vary greatly from policy to policy, so careful analysis of each plan’s pros and cons is important for choosing coverage that is right for your pet and your budget.

What benefits does pet insurance offer?

Grocery prices aren’t the only expenses that are rising. Across the board, the costs of goods and services are increasing, including veterinary products and care. Now, more than ever, pet insurance is a vital necessity for all pet owners, as policies provide the following benefits:

  • Financial assistance — Pet insurance’s value lies in helping pet owners manage unexpected veterinary bills, especially for costly treatments or surgeries. By providing financial assistance for necessary medical care, pet insurance eases the financial burden associated with keeping pets healthy.
  • Easy-to-compare policies — Pet insurance is much more straightforward than health insurance for people, making policy comparison much simpler by offering various coverage tiers. Getting a quote is also quick and easy, allowing you to price shop in minutes.
  • Reasonable costs — If your pet winds up seriously ill or injured, an emergency visit’s costs could be more than your deductible’s cost. With a reasonably priced policy, your pet gets far more care for your dollar than they would without a comprehensive insurance plan.
  • No out-of-network issues — With pet insurance, you develop no headache while trying to find a veterinarian in your network. Any licensed veterinarian accepts pet insurance, so you do not need to hunt down an in-network provider.
  • Extended care options — If your pet requires advanced care from a specialist, such as a veterinary dermatologist or oncologist, a pet insurance policy can ensure your furry pal receives the care they need. Specialty or alternative care is often more costly, but such services can be necessary in many instances. 
  • Peace of mind — When your pet is ill or injured, the last thing you want to worry about is how you’re going to pay for their care. With a robust insurance policy, you can get your furry pal the care they need rather than panic over finances.

What are the drawbacks of pet insurance?

Pet insurance acts as a financial safety net for your furry pal’s unexpected health issues and provides many benefits. However, you also need to consider a few drawbacks, such as:

  • Up-front payment is required — Most insurance providers require that you pay the bill for your pet’s care, so you will need to have the funds available up-front. After submitting a claim, your pet insurance company will reimburse you for eligible veterinary services and products. Some insurance providers pay veterinary hospitals directly, eliminating the need for you to pay the initial bill.
  • Coverage is not comprehensive — When purchasing a pet insurance policy, carefully assess all the covered services. Many policies do not cover exam fees, and routine wellness care is generally not covered unless you pay for a rider, which adds coverage to a comprehensive policy. Pre-existing conditions are not covered, and you should pay attention to fine print regarding future similar issues’ coverage that may preclude you from reimbursement.
  • Reimbursement caps limit financial assistance — Reimbursement limits are generally set in one of four categories: per incident, annual, lifetime, or unlimited. For example, if you reach the annual limit your provider will pay for gastrointestinal (GI) illness (i.e., vomiting or diarrhea), you will not be reimbursed the next time your pet has GI issues within the same year.

When comparing pet insurance policies, you may wonder which option best suits your pet’s needs. Talk with our Pets & Friends Animal Hospital team if you have questions regarding your pet’s potential breed-specific health problems, and we can help you make the right choice for your furry pal’s essential health insurance coverage.