Life is unpredictable, and for a pet owner, there is nothing worse than to find your beloved pet gravely ill. This is a feeling like no other because not only do you love your pet, but you also have an added responsibility to take care of its wellbeing. Unfortunately, veterinary care can be expensive and can cost you upwards of $13,000 during a pet’s lifetime.
Not everyone can afford that kind of money, and in some extreme instances, pet owners are forced to “put down their pet” to end its suffering once and for all, a process medically known as euthanasia. This involves injecting a solution into your pet’s vein, where it rapidly travels throughout the body resulting in a quick and peaceful death.
To negate this, many pet owners consider taking pet insurance to help them during such situations. But is pet insurance really worth it? Or are there better alternatives? Let’s find out.
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How Much Does Pet Care Cost?
It’s critical to understand your costs before deciding whether or not pet insurance is worthwhile. For starters, the ASPCA estimates that food, toys, treats, and grooming supplies cost roughly around $460 on average for dogs and $500 for cats each year. This does not include other necessary expenses like vaccinations, flea and tick medications, routine check-ups and deworming medications. That’s another $400 per year for dogs and $300 per year for cats. So, in total, a typical American household spends around $1,000 a year on their pet.
While these expenses do pile up in the long run, they are manageable for most pet owners. But it’s the illness and accidents that drive the costs up, and they happen all too often. A recent study conducted by CNBC and American Pet Products Association suggests that 1 in 3 pets experiences medical emergencies that require urgent intervention, costing the owner $3000 – $7000 a year.
This is serious money, and when you take into consideration that 69% of all Americans have less than $1000 in their savings account, the importance of pet insurance quickly becomes apparent.
How Much Does Pet Insurance Cost?
Just like human health insurance, the cost of pet health insurance is determined by a range of criteria which includes age, health profile, breed, and the amount or kind of coverage you pick. Other factors associated with pet insurance similar to human health insurance include annual premiums and deductibles.
But, according to the North American Pet Health Insurance Association (NAPHIA), the average pet insurance for a cat is around $30/month, and for a dog, the figure is about $47/month. It is important to note that the pricing varies drastically depending on your pet’s breed, age, location, as well as the deductible, reimbursement rate, and payout limits you choose and often ranges between $12 to up to $100.
Some Essential Details and Requirements About Pet Insurance:
Pre-Insurance Requirements
Like us, our pets also need to go through a medical examination before getting pet insurance approved. This would cost you around $300 to $1200, depending on which insurance package you take. But some lenders may exempt you from the test if you can show records indicating the pet’s health history from a certified veterinarian clinic.
Vaccinate Diseases Exclusion
Many first-time pet owners may fall for the trap when their pet insurance might exempt them from claiming full insurance coverage for diseases that can be avoided through vaccination. This falls under “disease caused for negligence”, and some of the diseases that fall in this category include canine influenza, kennel cough, giardia, and parvovirus. It is advised to give all the required vaccination as it will hardly cost more than $200 but can save you a fortune in the long run.
Periodontal Disease
Many pet owners are surprised to learn that, while their insurance covers dental check-ups and cleanings, it does not cover tooth and gum diseases, which can cost them up to $5,000 in medical fees. Therefore an important consideration is to include dental health into your pet insurance coverage.
Accident-Only Coverage
Accident-only coverage costs between $126 and $194 per year ($11 to $16 per month). Many pet owners think that the comparatively cheap cost of accident coverage is worth the peace of mind it provides. Using this, you can claim any medical bills you incur because of accidents, including consuming a foreign item, fracturing a bone, or being hit by a car. Owners of an older pet or with a medical condition may no longer be eligible for disease coverage, with accident coverage being their only option.
Bilateral Condition Exclusion
Some insurance companies exclude medical problems that can happen on both sides of the body; this includes cruciate ligament issues and cataracts, to name a few. If you have multiple pets and are always actively running around the house, you may consider checking if your insurance company offers Bilateral Condition in their package.
Annual Care Requirement
Some insurance policies require you to take mandatory wellness treatment annually to protect your pet from common and avoidable diseases. This may require taking your pet to a certified vet and getting a mandatory medical check-up. Not to mention, you will be responsible for bearing the cost of medication, and it can range you anywhere from $120 to $600.
How To Get Lower Rates
Some tips that can help you get lower rates on pet insurance include enrolling your pet when they are still young; you generally get better rates compared to when they are adults. You may also consider paying off your insurance coverage annually as opposed to monthly payments; some pet insurance providers may give you a discount on your premium. Others will give you a discount if you insure multiple pets with the same company.
But the best way to get your monthly premiums down is by selecting a high deductible. This means you agree to share a part of the medical expenses from your own pocket. This ensures the insurance company that you will take proper care of your pet and will be less likely to file for an insurance claim.
Similarly, you may save money by choosing a lower reimbursement rate or a smaller coverage limit, but this will restrict how much your insurer would pay out if your pet becomes critically ill or injured.
Alternatives to Pet Insurance
If you are not a fan of putting aside money each month for an expense that you may never have to bear, here are some alternatives to pet insurance.
- Create an Emergency Fund: You can save money each month in a high yield saving account instead of paying a third party company. This way, you can have a fund ready in case you need it for either your pet or any other emergency you may face. The obvious downside is that you may incur medical fees even before you manage to save any money or the money you saved is not enough for the cost of treatment.
- Financial Assistance: If you have a good credit score, you can apply for a personal or pet loan and get funds to pay off the medical expenses. In case your credit score is not that good, you can apply for an instant payday loan that requires no credit check or collateral and use the money to pay off your emergency expenses.
- Seeking Help from Friends and Family: Asking for help from a friend or family can be an option to consider. The chances are slim, but if your pet means a lot to you and if there is no other possible solution, asking a friend for help can be your last option.
- Veterinary Financing/Credit Solutions: For emergency pet care, veterinary financing solutions might be quite beneficial. However, one thing to keep in mind is that they may require a qualification process and may have high variable interest rates. If you already have a considerable amount of debt owing to student loans, credit cards, or a mortgage, adding additional debt on top of it isn’t always the best option.
The Bottom Line
Is pet insurance worth it? Yes, more than 95% of pet owners consider their pet as part of their family, yet only 3% of all pets in the United States are insured. Looking at the costs above, we can conclude that by spending only $50 a month for dogs and $40 for cats, you can completely get accident and illness coverage, which will save you a fortune in case you face a multi-thousand dollar veterinary bill.
There are other alternatives, including taking a loan, creating an emergency fund or seeking help from a friend, but ultimately they all come with a certain degree of uncertainty. Failure to pay off your pet’s medical expenses can lead to something as awful as economic euthanasia. We recommend you check out pet insurance if you want your pet to have a happy and secure life. If you found these tips helpful, you may also like our articles on insurance in general.
