How Much Does Pet Insurance Cost?

Pet insurance is a hot topic among pet owners, and if you recently brought a pet into your home, you just joined a pretty big club. More than two-thirds of U.S. households own a pet, according to the 2019-2020 American Pet Products Association National Pet Owners Survey.

That’s about 85 million homes, which roughly translates into more than 85 million opinions on how to best care for a pet.

Pet insurance is a good way to help pay for a pet’s medical expenses. But if you ask 10 pet owners their thoughts on pet insurance, you’re likely to get a bunch of different answers. Some pet owners will tell you it’s a waste of money, while others will tell you an anecdote of how it’s saved them thousands of dollars over the years.

While the cost of pet insurance will likely play a major role in your decision, the good news is you can find a policy that fits almost any budget. But keep in mind that pet insurance rates will generally rise every year at renewal time.

Here’s a guide to the factors that affect how much pet insurance costs.

Average Pet Insurance Costs

Coverage Types Chosen Affect Pet Insurance Cost

One of the biggest factors that will determine your cost of pet insurance is the coverage you choose. For example, a comprehensive nose-to-tail policy that covers medical expenses for accidents, illnesses and hereditary conditions will be much more expensive than a policy that only covers routine veterinary visits such as check-ups and vaccinations.

Your coverage choices will depend on the pet insurance company. Here are three common types of pet insurance plans:

• Comprehensive pet plan. This type of policy typically covers medical expenses for a wide range of problems, including accidents, illnesses, vaccinations, diagnostic tests, surgeries and treatments.
• Accident and illness coverage. This type of policy helps pay for vet bills for unexpected incidents, such as sprains from accidents, poisonings and common illnesses such as ear infections. This might also cover expenses such as lab tests, surgeries, hospitalization, prescription medications and emergency care.
• Accident-only coverage. This type of policy covers certain medical expenses if your pet suffers an accident, like a ligament sprain. Coverage might include diagnostic tests, surgeries, X-rays, hospitalization, prescription medications and emergency care.
• Wellness plans. This type of policy covers medical expenses for wellness exams and tests, flea and heartworm prevention, and vaccinations. Some pet insurance companies won’t sell wellness coverage as an individual plan and will require you to also purchase a pet medical plan.

Related: Best Pet Insurance Plans 2021

Pet Insurance Deductibles

A deductible is the amount of money you’ll pay out of pocket every year to a veterinarian before coverage starts. The higher your deductible amount, the less you’ll pay in pet insurance premiums.

You can typically choose a pet insurance deductible that ranges from $0 to $1,000.

Pet Insurance Reimbursement Levels

Pet insurance policies are reimbursement-based, meaning you’ll usually have to pay up front for your pet’s medical bills and submit a claim to the pet insurance company.

Once you have met the deductible for your plan by paying out-of-pocket, coverage will kick in at the level outlined in the plan. You can typically choose reimbursement options of 70%, 80% or 90% of the pet medical expenses that are covered by the plan.

Pet insurance costs are higher for better levels of reimbursement.

For example, if you have a $500 annual deductible and 80% reimbursement, you’ll be responsible for the first $500 of your pet’s covered medical expenses during the policy period. You will then be reimbursed for 80% of your pet’s medical expenses that are covered by the plan.

Example: If the pet had a medical procedure that cost $1,500 and it was your first claim of the policy period, you would pay $1,500 to the vet. The first $500 of that is your deductible and then you’d be reimbursed 80% of the remaining $1,000, for reimbursement of $800.

Keep in mind, you’ll only be reimbursed for medical expenses that are covered by the policy. For example, if you have accident-only coverage, you won’t get reimbursed for illness-related problems.

The Pet’s Breed Will Affect Pet Insurance Costs

Your pet’s breed is a major factor in determining pet insurance costs. That’s because some breeds are predisposed to illnesses, which typically translates to more veterinary visits and higher medical bills. For example, some larger breeds of dogs are more susceptible to heart and hip issues.

In our analysis of filings by pet insurers to state regulators, we found many pricing levels based on dog breeds but little variation for cats.

Cats are cheaper to insure than dogs. And birds, reptiles, rabbits and ferrets cost less to insure than cats.

Here’s an example of annual pet insurance rates for common pets from Progressive Pet Insurance by Pets Best.

Older Pets Are More Expensive to Insure

A pet’s age is another piece of the pet insurance pricing puzzle. As your pet gets older, the chances of illness increase, which typically results in higher pet insurance premiums. We analyzed age rating factors for a Veterinary Pet Insurance Co. policy and found that the best prices were after a pet’s first birthday until around age six. By the pet’s ninth birthday, you can expect its age rating factor to more than double.

Some pet insurance companies might decline coverage when your pet reaches a certain age. For example, we analyzed a Trupanion policy that requires you to enroll the pet before its 14th birthday. If you purchase a policy before the pet turns 14, your pet will have lifelong coverage, as long as you don’t cancel the policy. But if you wait until after the pet’s 14th birthday, you won’t be able to buy the policy.

Here’s a look at an example of age-based rating factors from a Veterinary Pet Insurance Co. policy in California.

Other Pet Insurance Price Factors

Here are more factors that can affect pet insurance rates:

• Chronic or pre-existing conditions. If your pet has suffered a previous illness or injury, or has a chronic condition, it could affect the price of pet insurance. Some pet insurance companies might decline to cover chronic conditions or only offer coverage for pre-existing conditions if they have been cured—for example, if your pet had heartworms but the issue has been resolved.
• Location. Where you live and the local cost of veterinary care in the area could affect pet insurance rates.