4 Things to Consider When Choosing Pet Insurance

When the unexpected happens and your pet gets sick or injured, pet insurance can help make expensive diagnostic procedures and costly treatments more affordable. Most pet insurance plans reimburse you for costs associated with veterinary care, which may make pet insurance one of the best ways to save money on dog or cat healthcare. Some plans also include routine healthcare like vaccinations and annual health screenings, which can help lengthen the life of your beloved fur pal.

Pet insurance is a relatively small investment in your pet’s health that can reap priceless rewards. But shopping for pet insurance isn’t always straightforward. Here’s what you need to know about choosing pet health insurance so you can get the best health coverage for your dog or cat.

1. Decide What Type of Coverage You Need

Pet insurance generally offers three types of coverage:

• Accident only. This covers costs associated with treating accidental injuries.
• Accident and illness. This more comprehensive coverage can reimburse you for costs associated with diagnosing and treating illnesses and diseases in addition to accidental injuries.
• Preventive care. Also known as wellness care, this is typically additional coverage you can purchase on top of your primary policy that will help pay for routine veterinary care, such as vaccinations, dental care and annual wellness exams.

When deciding which type of coverage is right for you and your pet, it’s important to consider your pet’s current and future health needs. The type of pet you have, as well as their breed, age and lifestyle, are all factors that can help you determine the best coverage.

A healthy, young, mixed-breed cat who spends all their time indoors, for example, may be at low risk of catching communicable illnesses or developing chronic diseases, especially if you keep their vaccinations up to date and maintain them at a healthy weight. On the other hand, a French bulldog has several breed health predispositions and may be an excellent candidate for both illness coverage and preventive care.

Keep in mind that it may be difficult to upgrade your plan as your pet ages and the possibility of age-related illnesses and other health conditions increases. Although some pet insurance providers, like Pets Best, don’t place upper age limits on accident or illness plans,¹ it’s generally best to secure comprehensive coverage for your pet when they're young and healthy to ensure they’ll stay covered when age-related illnesses become an issue.²

2. Understand Your Out-of-Pocket Costs

Another important consideration when choosing pet health insurance is your budget. Understanding how pet insurance works, the type of coverage you can expect and how much you may need to pay out of pocket will help you select an affordable plan for vet care.

Here are some significant terms to know:

• A premium is the fee you’ll pay regularly to keep your pet’s health coverage. Premiums are usually billed monthly or annually.
• A deductible is the amount you’ll pay each year out of your own pocket before your pet insurance kicks in and you can file a claim for reimbursement. The higher the deductible, the lower your premiums will be, and vice versa.
• A copay is a set amount or percentage of costs you agree to pay out of pocket for each vet visit, while your pet insurance provider reimburses you for the rest. This is also referred to as “coinsurance.” In North America, copays for pet insurance are typically 10% to 20%, although some insurers don’t have copays and will cover 100% of your costs.

3. Know What Pet Insurance Doesn’t Cover

Pet insurance policies commonly come with exclusions and limitations as to what’s covered. For example, preexisting conditions (a health condition that begins before your pet’s coverage does) typically aren’t covered. Some companies will cover preexisting conditions, but often with restrictions on circumstances that entitle the condition for coverage.

It’s also not unusual for pet insurance companies to refuse new policies for senior pets — or they may offer limited coverage or charge higher premiums. This can not only make it difficult if you wait to insure your pet, but it can also make it hard to switch providers or upgrade policies for older pets. Some companies might also have maximum spending limits on treatments for chronic or long-term health conditions.

Here's the bottom line: It’s important to consider your pet’s current and future health requirements and carefully review any policies you’re considering, including the fine print, to make sure you’ll have the coverage your pet needs as they age.

4. Other Factors to Consider

Cost and coverage aren’t the only things to keep in mind while shopping for pet health insurance. Here are some additional factors to think about:

• Breed-specific health conditions. If your pet’s breed is predisposed to specific health conditions or illnesses, the cost of your premiums may be higher.
• Changing your coverage. While most pet insurers allow you to downgrade to less coverage after your pet is already enrolled, it’s usually more difficult to increase the amount of coverage, especially as your pet ages. And if you change providers altogether, health issues that were covered by your previous provider may be excluded from coverage under a new pet insurance policy.
• The provider’s reputation. Take time to carefully read reviews of any pet insurance companies you’re considering and to ask anyone you know who has pet insurance about their experiences with their provider.
  
  Here are some things to seek out:
  
  • Good customer service
  • 24/7 availability
  • Prompt claim processing and reimbursement
  • Taking time to answer customer questions

Tips for Choosing Pet Insurance

These tips for shopping for pet health insurance will help you choose the right plan for your fur pal:

• Ask for recommendations. Your vet, other clients at your vet’s clinic and friends or family who have insured pets are all great sources for information on potential pet insurance companies.
• Read reviews. As you compile a list of pet insurance providers, research the experiences of their customers to make sure they’re a good company to deal with.
• Contact multiple plans and providers. Obtain quotes from more than one provider and spend some time comparing types and levels of coverage. You should also contact them by phone or email so you can ask questions and get a feel for their level of service.
• Carefully review and compare pet insurance policies. A good pet insurance company will be happy to let you read over their policies and compare them with other plans before you enroll.
• Be honest about your pet’s health history. While it may be tempting to hold back information from providers in the interest of lowering your premium, this is fraudulent and can keep you from obtaining the level of coverage your pet needs.

You have a variety of options when it comes to choosing pet insurance. Having clarity about both your budgetary needs and your pet’s long-term health needs will help you evaluate those options as you consider which pet insurance plan best fits those needs.

CareCredit Credit Card Financing for Pet Care

Taking good care of your pet's well-being from nose to tail is essential. Make sure to stay up to date on their regular checkups at the vet to help keep your pet happy and healthy for a lifetime of love. You can use your CareCredit credit card for pet care throughout the year for routine veterinary services as well as for emergencies and surgeries.* Use our Acceptance Locator to find a veterinarian near you that accepts CareCredit.

CareCredit is there for you and your pet every step of the way; continue your wellness journey by downloading the CareCredit Mobile App to manage your account, find a provider on the go and easily access the Well U blog for more great articles, podcasts and videos.

In addition to pet care, you can also use your CareCredit credit card for dentistry, cosmetic, vision, hearing, health systems, dermatology, pharmacy purchases, spa treatments and so much more within the CareCredit network. How will you invest in your health and wellness next?

Expert Reviewer

Dr. Fiona Lee, D.V.M.

As the daughter of a veterinarian, Dr. Fiona Lee grew up playing in kennels with bandage material and tongue depressors. This eventually turned into a passion for animals and veterinary medicine. Dr. Fiona now serves as the Director of Medical Standards at Habitat Veterinary Hospital in Boise, Idaho. After completing her undergraduate degree in biology and chemistry at Willamette University in Salem, Oregon, Dr. Fiona received her veterinary degree from Colorado State University in Fort Collins, Colorado in 2007.

Author Bio

Jean Marie Bauhaus is a freelance writer and novelist who has been writing pet content since 2013. Her work has appeared on Forbes.com, Hill's Pet, Chewy, AKC.org and more.