Frequently Asked Questions About Pet Health Insurance

Through the years veterinary medicine has become more technologically advanced and that has led to longer life expectancies for beloved pets. But as care offerings expand, the cost of such care increases. Pet health insurance is designed to offset many of the costs of keeping a pet happy and healthy.

Pet insurance wasn't always as readily available as it is today. The first insured pet in the United States was Lassie, the famous television collie, who was insured back in 1982, according to the Insurance Information Institute (III). Today, there are 5.36 million insured pets in the U.S., according to Forbes, with 80 percent of them being dogs. The North American Pet Health Insurance Association says there was a 12.7 percent increase in the total number of insured pets from 2023 to 2024.

What does pet insurance do?

Pet insurance reimburses a person for a percentage of veterinary expenses relating to a pet's illness or injury. While pet insurance isn't required, it provides peace of mind to owners in case their companion animals need expensive treatment or routine care.

What is covered?

Policies vary regarding pet insurance. Some cover accidents and illnesses, others accidents only, and others will include wellness, which reimburses owners for routine and preventative care. Wellness plans typically are add-ons to other coverage, but increasingly they are becoming standalone policies, says U.S. News and World Report.

What is the cost?

Cost of coverage is based on the animal's age, health profile and the level of care chosen. Older animals usually cost more to cover, and some companies place age limits on their policies, says the III. That being said, Forbes reports the average monthly premium for accident and illness pet insurance in the U.S. is about $53 per month for dogs and about $32 per month for cats. The North America Pet Health Insurance Association State of the Industry Report 2022 and 2023 indicated the top paid medical-related pet insurance claim for dogs was $60,882.

Are there exclusions?

It is important to thoroughly research potential pet insurers before purchasing an insurance plan. Some may exclude preexisting conditions, including any disease and conditions the pet has now or has had in the past, advises the American Veterinary Medical Association. Pet owners are urged to learn how each provider defines preexisting conditions. Also, in some cases providers will not insure a specific pet or breed of pet, or they may limit the number of pets one can insure, if the pets are considered "high risk." Individuals should make sure that they can choose their own veterinarians for pet care and that there isn't a required provider.

How do you get paid?

Most pet insurance plans are reimbursement plans. That means the pet owner pays the bills up front and then is reimbursed by the insurance provider. The timeframe for reimbursement varies by provider. It's best to know about the average time to process and pay out claims.

Pet insurance can offer peace of mind to pet owners. While it isn't a mandatory purchase, new pet parents may want to consider it to help manage the rising cost of pet care.