What Is Pet Insurance? What Every Pet Parent Needs To Know

Pet insurance works a bit differently than human health insurance, says Paul Reynolds, special projects editor for Money.com. Here’s what that means in practice: 

• Most plans don’t cover routine care unless you add a wellness plan—so things like checkups, vaccines, and dental cleanings are usually out of pocket. 
• You typically pay the vet up front, then get reimbursed after you file a claim (though some plans can pay your vet directly). 
• Pre-existing conditions—meaning anything your pet showed signs of before coverage started—are usually not covered. 

So what exactly can pet insurance cover? It mostly comes down to the type of plan you choose: 

• Accident only: Covers unexpected injuries—think broken bones, cuts, poisoning, or your pet swallowing something they definitely shouldn’t (looking at you, squeaky toys). These plans often include diagnostics and surgery tied to the accident. 
• Accident and illness: Covers injuries plus conditions like cancer, infections, diabetes, and GI issues, along with related tests, treatments, and prescriptions. 

There’s also a wellness plan for expected costs, which can help reimburse things like exams, vaccines, and dental cleanings up to a set annual amount. 

Most pet parents choose accident and illness plans for broader coverage—especially for those “how did that even happen?” moments or more serious diagnoses. 

CarePlus by Chewy offers accident-only, accident and illness, and wellness plans, with options like prescription coverage through Chewy. 

To decide what’s right for you, think about your budget and what kind of care you want covered, advises Ann Hohenhaus, DVM, DACVIM, senior veterinarian and director of pet health information at Schwarzman Animal Medical Center. 

The cost of pet insurance depends on your pet’s breed, age, and where you live. On average, accident and illness plans cost about $56 a month for dogs and $32 for cats, based on 2023 data from Forbes. Accident-only plans are typically around $15 a month for dogs and about $6 a month for cats, according to the same source. 

But those are just averages. What you’ll actually pay depends on a few key factors: 

• Deductible: This is what you pay out of pocket each year before reimbursement kicks in. Lower premiums usually come with higher deductibles. 
• Reimbursement rate: Most plans cover about 70%–90% of eligible costs. The higher the percentage, the higher your monthly premium. 
• Coverage limit: Plans typically cap payouts somewhere between $5,000–$100,000 per year—or offer unlimited coverage. Higher limits usually mean higher premiums. 
• Breed: Some breeds are more prone to certain health issues, which can drive up premiums. For example, larger breeds may be more likely to develop joint conditions, and some dogs (looking at you, Labradors) have a knack for eating things they shouldn’t. 
• Age: Older pets tend to cost more to insure because they’re more likely to develop health issues. 
• Location: Vet costs vary by region, and insurance premiums tend to follow suit. 

Before you sign up, it helps to know what pet insurance usually doesn’t cover—because there are a few common gotchas: 

• Pre-existing conditions: If your pet had symptoms before coverage starts, that condition typically won’t be covered. 
• Routine care: Things like exams, vaccines, and dental cleanings are usually only included if you add a wellness plan. 
• Waiting periods: Coverage doesn’t kick in right away, and the timeline can vary depending on the condition and provider. 

When your pet gets sick or has an accident, you’ll typically pay the vet bill up front, then file a claim with your insurance company to get reimbursed for covered costs. Most providers follow this reimbursement model, according to the AVMA. 

Here’s a quick example: If your vet bill is $900, your deductible is $500, and your plan reimburses 80%, you’d get back 80% of the remaining $400—that’s $320. 

A few things can affect how much you get back (and when): 

• Pre-existing conditions: Most plans won’t cover anything your pet showed signs of before coverage started—even early symptoms. 
• Waiting periods: Coverage doesn’t kick in right away. Many plans have waiting periods (often a few weeks, but sometimes longer for certain conditions) before claims are eligible. 
• Deductibles: Some plans use an annual deductible, while others apply one per condition—so it’s worth double-checking how yours works. 
• Follow-up care: Not all plans cover exam fees or recheck visits, even if they’re tied to a covered condition. 

Some insurers may cover certain previously treated conditions if they’re considered “curable,” but this varies by provider. 

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. 

When you’re comparing plans, it can also help to check what’s included in coverage, like: 

• Vet exam fees (many plans don’t cover routine visits) 
• Hereditary conditions, such as hip dysplasia 
• Wellness plans (if offered as an add-on) 
• Surgery and emergency care 
• Prescription medications 
• Treatments for conditions like cancer 
• Diagnostic testing (X-rays, MRIs, CT scans, ultrasound, blood work) 
• Rehab or physical therapy 
• Non-routine dental care 
• Euthanasia 

So you’re ready to buy pet insurance—now what? Here are a few smart ways to narrow down your options: 

1. Start with your vet. They’ve seen how different plans work in real life and can share what tends to help pet parents most. 

From there, a little comparison shopping goes a long way: 

1. Get quotes online. Most providers let you plug in your pet’s age, breed, and ZIP code to see plan options and pricing. 
2. Read the fine print. Look at waiting periods, exclusions, and whether you can keep seeing your current vet (most plans allow it). 
3. Know your budget. Factor in your monthly premium, deductible, and what you’d still pay out of pocket after reimbursement. 
4. Compare the details. Things like how quickly claims are paid, how easy it is to file, and whether there’s an app or 24/7 support can make a big difference day to day. 

You can also explore plan details directly through CarePlus by Chewy to see how coverage works. 

At the end of the day, the best pet insurance is the one that fits your budget and helps you feel prepared for the unexpected. 

Trying to decide if pet insurance is worth it? It really comes down to how much risk you’re comfortable taking on—and how you prefer to pay for care. 

• How much risk am I willing to take? If your pet only needs occasional, low-cost care, you may not get back what you pay in premiums—but you’re also betting nothing major will happen. 
• Do I have savings set aside? Savings can cover smaller expenses, but insurance can help with bigger, unexpected bills. 

Pet insurance can make it easier to afford care if something serious happens—you just have to decide if that trade-off makes sense for you. 

In most cases, earlier is better.  

Enrolling your pet while they’re young and healthy can mean lower monthly premiums and fewer pre-existing conditions to worry about later.  

Puppies and kittens also tend to get into their fair share of trouble—so having coverage early can help if something unexpected happens. 

Yes—there are a few ways to make vet care more affordable if you’re paying out of pocket: 

• Ask your vet about options. Many clinics can suggest lower-cost treatments, payment plans, or prioritize care based on your budget. 
• Look into financial assistance programs. Organizations like the Humane Society and ASPCA offer guidance and resources for pet parents who need help covering care. 
• Consider preventive care. Regular checkups can help catch issues early—when they’re often easier (and less expensive) to treat, says Dr. Hohenhaus. 

Staying on top of routine care and asking about your options can go a long way in keeping vet costs manageable—even without insurance.