Pet Insurance: What Every Pet Parent Needs To Know

Pet insurance is different from human health insurance in several ways, says Paul Reynolds, insurance editor for Money.com. These include: 

• Most pet insurance policies don’t cover preventative or routine care, unless you add on a wellness plan. Without wellness, you would be responsible for routine care like checkups, vaccines, and dental cleanings. 
• Instead of paying co-pays at the vet, you usually pay the vet up-front for the procedure and get reimbursed by the insurance company after you file the paperwork. With some plans, which you can checkout through CarePlus by Chewy, providers can pay vets directly. 
• Pre-existing conditions—aka a medical condition, or even a sign or symptom of that condition, that your pet had before the cat or dog insurance plan went into effect—are typically not covered.  

So what exactly can cat or dog insurance cover? That depends on the type of insurance you end up buying. There are two main types: 

1. Accident only: These policies are designed to cover those unexpected injuries, including poisoning, car or other vehicle injuries (being hit by a car, being in a crash), broken bones, sprains and cuts, and swallowing objects (like rocks or squeaky toys). They’ll often also cover diagnostic tests (like ultrasounds) and surgeries related to the covered accident. 
2. Accident and illness: These policies can cover those unexpected injuries as well as new diseases and conditions, including cancer, infections, bloat and other GI illnesses, diabetes and arthritis. They can also cover eligible medical tests, surgeries, and prescriptions and some of them cover alternative therapies (like acupuncture). 

There is also something called a wellness plan for those expected costs. With most wellness plans, you can get reimbursed for things like routine exams, vaccines, bloodwork, fecal tests, heartworm tests, flea and tick medicine, spay/neuter surgery, and dental cleanings, up to the annual benefit cap.  

Most pet parents choose accident and illness pet insurance plans because they can provide greater coverage. These policies can help offset the cost of those expensive vet bills if the unexpected happens and your pet scarfs down a poisonous plant or is diagnosed with cancer. 

CarePlus by Chewy offers all three major types of pet insurance plans: accident only, accidents and illness, and wellness. They stand out by offering options that can cover 100% of eligible prescriptions ordered through Chewy.com and access to unlimited virtual consults with the Chewy vet team. With the different plan options, CarePlus offers an assortment mix to get the best coverage for their pet. 

To decide which policy is right for your furry family members, figure out what’s important to you, advises Ann Hohenhaus, DVM, DACVIM, senior vet, oncology specialist and director of pet health information at Animal Medical Center in New York City.  

An accident and illness plan is designed to help you manage the unexpected, helping with financial peace of mind when your pet faces an injury or sudden health issue. This type of coverage helps you focus on your pet’s care during stressful vet visits, without as much worry about the cost. A wellness plan, on the other hand, is designed to help you budget for routine checkups and expected annual costs like vaccines, exams, and preventative care. 

Visit CarePlus by Chewy, or talk to one of our expert agents at 800-672-4399 to learn more. 

The cost of pet insurance depends on your pet’s breed, age, and your location. On average, premiums are $62 a month for dogs and $32 for cats if you get an accident and illness plan, according to the North American Pet Health Insurance Association (NAPHIA). If it’s accident only, then you’ll pay around $16 a month for your dog and $9 for your kitty.  

But that’s the average premium. So how much does pet insurance really cost? Here are some other factors that can weigh in: 

• A deductible: This is the money you have to spend annually before you are eligible to get reimbursed. This can range from $0 to $1,000. In general, the higher the deductible, the lower your premium. 
• Reimbursement rates: This is the percentage you’ll get back from the insurance company for eligible costs. Pet insurance reimbursement typically won’t cover 100%, but you can shop around for plans that cover anywhere from 70% to 90%. And the higher the reimbursement rate, the more expensive the plan will likely be. 
• Annual coverage cap: This is the maximum total amount the insurance company will reimburse in a given policy year. Policy caps typically range from $5,000-$100,000, or even offer unlimited. The higher the yearly cap, the more expensive the premium. 
• Your pet’s breed: Pedigreed pups and felines sometimes come with hereditary health issues—elbow dysplasia for Golden Retrievers and Labrador Retrievers, hip dysplasia in German Shepherds and Maine Coon cats, spinal conditions for Bulldogs, for instance. Insurance companies are aware of these hereditary conditions and will charge higher premiums to cover purebred pets. This is true for accidents as well. “Labrador Retrievers are notorious for eating crazy stuff and so their premiums tend to be higher because there’s a higher chance that they’re going to have to have an operation to take it out,” says Reynolds. 
• Your pet’s age: The older the pet, the higher the premium if you have accident and illness insurance. That’s because older pets are more likely to get cancer, arthritis or other age-related ailments. Some plans also have an age limit and either won’t cover older pets (typically starting at 10 years of age) or may only offer accident insurance. 
• Where you live: Premiums will vary, depending on where you live.  

When your pet gets sick or has some type of accident, you’ll file a claim with the pet insurance company. The insurance company determines if it’s an incident that’s covered by your plan, and if so, will reimburse you back toward the money you spent on the vet bill. 

This is where the pet insurance deductible and reimbursement amounts come in. So for an eligible $900 invoice, if you have a deductible of, say, $500 and reimbursement rate of 80%, you can be reimbursed 80% of any amount over $500, which is $320 ( ($900 – $500) x 80% ).  

There are other things to be aware of too before you can receive your money back on a claim. Consider these “ifs”: 

• If your pet has a pre-existing condition: Most pet insurance plans don’t cover pre-existing conditions. That’s a medical condition, or even a sign or symptom of that condition, that your pet had before the cat or dog insurance plan went into effect. And companies check your pet’s medical records very carefully. 

The exception: Some insurance companies will cover the cost of treating conditions that your pet had before being enrolled. This is known as a curable condition. 

• If there’s a waiting period before your plan kicks in: Before coverage kicks in, you may have a waiting period for your plan before any eligible conditions can be reimbursed.  Some companies may have a 30-day period and even as long as 6 months for specific conditions. That protects the insurance company in case there’s no medical record of the problem, says Reynolds. For instance, if your dog suddenly starts limping and you rush out to buy insurance in case he needs a leg operation, your coverage will begin after any waiting periods and not include pre-existing conditions prior to this timeframe.  Waiting periods can vary by plan and state, so make sure you do your research.  
• If your plan has an annual deductible for each condition: “Say your pet has kidney disease, lymphoma and thyroid disease,” says Dr. Hohenhaus. “There’s a deductible for each one of those conditions instead of an annual amount.” With CarePlus, all plans have an annual deductible, so once it is met, you can pay less out of pocket for your covered benefits.  
• If your plan covers follow-up recheck visits: Vets typically want to see your dog or cat a few weeks after treating your pet, even if your furball is symptom free, says Dr. Hohenhaus. Some insurance companies don’t cover exam fees. 

The bottom line, says Dr. Hohenhaus: “What is included in the policy is as important as what is excluded in the policy”—so pay attention to both. 

Some categories to check on when you’re shopping around for plans: 

• Vet exam fees (routines are usually not covered; some cover the illness exam fee) 
• Hereditary and congenital conditions, such as hip dysplasia 
• Wellness plan (can be included, extra or not offered) 
• Surgery 
• Emergency/hospital care 
• Prescription medications 
• Cancer treatments 
• Specialty care 
• Holistic therapy (check to see what’s covered: some insurance companies cover chiropractic care or acupuncture, some don’t) 
• Chronic conditions (Are they covered for life?) 
• Diagnostic testing (X-rays, MRIs, CT scans, ultrasound, blood work) 
• Ligament and knee conditions (Check orthopedic waiting periods: some insurance have 6-month waits) 
• Rehabilitation, prosthetic devices, physical therapy 
• Non-routine dental (a cracked or broken tooth) 
• Euthanasia 

So you’ve decided you want to buy pet insurance. Here’s where to go to buy it: 

Head online. Googling “pet insurance” will turn up a number of results, including national insurance companies that also sell pet insurance and companies that specialize specifically in pet insurance. For example, you can review Chewy’s own CarePlus plans here. 

Ask your vet. Yours can give you guidance on their personal experience with pet insurance or how they have seen it help pet parents with peace of mind and financial support for the unexpected.  

It also pays to do the research and do some comparison-shopping for the best pet insurance for your furry family member. Here’s how: 

1. Use the “Get a quote” button on the pet insurance provider’s home page. Once you fill out information, like your pet’s age, breed, and your zip code and email, you’ll be presented with plan options. There might be just one set plan, several set plans or an option to customize. If you can customize the plan, you can select different options to see how each change affects the monthly premium. 
2. Be on the lookout for important information, like how long the waiting period is or how restrictive the exclusions list is, advises Reynolds. You also want to make sure the insurance company lets you keep seeing your vet (most do). You can view important details about CarePlus plans online, for example.
3. Figure out your budget. Add up all the money you’ll spend a year, including the deductible, the premiums and the amount you’ll need to pay even after the insurance company reimburses you. 
4. Compare and contrast your top picks by finding out: 

• • How fast do they reimburse claims? 
  • How difficult is it to file a claim? 
  • Do they have good customer service? Is it available 24/7? 
  • Is there an app available? 
  • Is their website easy to use? 
  • Can you make changes to your plan? 
  • Do they offer a money-back guarantee? 

In the end, the best dog insurance or insurance for cats is the one that will give you peace of mind. 

Is pet insurance worth it? 

Here are some questions to consider to make your decision a bit easier: 

• How much risk am I willing to live with? “If your pet has a normal medical life—they get sick occasionally with something that is not life-threatening or requires surgery—then you will not recoup the money that you paid on pet insurance,” says Paul Reynolds, who’s crunched the numbers. The trouble is, you don’t know what the future holds. If your pet gets cancer, swallows a spoon (yes, it happens!) or gets hit by a car, pet insurance can help you with the surgery or chemo bills. 
• Do I have savings? Are you someone who prefers putting aside money to budget for vet care? While this option can help, pet insurance can cover above and beyond what a pet parent can save for the unexpected. 

The bottom line: Having pet insurance can help you pay the vet bills in case something serious happens to your pet. 

When’s the best time to enroll in pet insurance? 

If you insure your pets while they are young and healthy, the premiums will probably be lower, and they’re much less likely to have pre-existing conditions. (Remember that most insurance companies don’t cover those pre-existing conditions.) Puppies and kitties can also get into trouble, and may be more likely to need emergency care.  

If I don’t have insurance, are there ways to lower my vet bills? 

There are some nonprofits that can help people in need (find a list at Gofundme.com) and you can also crowdsource the funds. There are also health credit cards (CareCredit.com) and companies that can loan you money for your bills (but check the rates). Or just have an honest convo with the vet. 

In the end, the best way to save money on vet visits is to take your pet to the vet at least once a year and even more often if your pet has a health issue, says Dr. Hohenhaus. That way, your pet’s provider is more likely to catch something early, when it’s fixable. And that will not only save you money, but give you much more time to spend enjoying your pet.