Food, toys, treats, flea and tick preventatives, vaccines, daycare — the list of monthly expenses for pet owners goes on and on. In fact, on average, owning a dog costs nearly $1,500 annually, a sum that can make a sizeable dent in any pet owner’s budget. You may wonder whether the pros of pet insurance really outweigh the cons when your pet is already so expensive. 

With the already significant cost of taking care of your furry friend, it might not seem worth it to add pet insurance to your ever-growing list of expenses. But pet insurance isn’t like other optional costs — it might actually end up saving you money in the long run.

What Is Pet Insurance?

Pet insurance is essentially health insurance for your pet. If you get pet insurance, you’ll pay your chosen insurance company a monthly fee called a premium. Premiums are based on many factors, including the amount of coverage you choose, your pet’s current health, where you live, the kind of animal you’re insuring, and much more. 

In return, if your pet needs to see the vet, your insurance company will reimburse you for a portion of the cost of the visit. You can choose reimbursement packages ranging from 50% to 100%.

Pros of Pet Insurance

For a low monthly fee, pet insurance ensures that you’ll always have the funds to afford the absolute best care for your furry friend, but there are other benefits as well. 

1. Few Vet Restrictions

Unlike human health insurance, pet insurance has very few restrictions about which clinic you visit. Pet insurance companies typically only require you to take your pet to a licensed veterinarian.

The flexible requirements of pet insurance makes it easy to make claims when you’re traveling, moving, or have to take your pet to an emergency vet. You don’t have to worry if the clinic you visit is in-network or eligible for claims; you only have to make sure they have a license to practice veterinary care.

2. Significant Savings

Pet insurance plans typically cost less than $40 per month, and can provide significant savings should you need to use it. For example, an MRI for a dog can cost as much as $5,000. With a typical coverage of 80%, you could save $4,000 on diagnostics alone. 

3. Peace of Mind

Rarely, situations can arise where pet owners have to make tough decisions between their pet’s health and their budget.

For example, your dog may receive a cancer diagnosis. Treatment can cost thousands of dollars, and may not prolong your dog’s life for more than a few months. Some pet owners have had to decide to decline chemotherapy or other costly treatments that might buy them more time with their beloved pet in favor of protecting their finances. 

If this kind of devastating scenario arises, pet insurance can free you from having to make a difficult choice. With the right insurance plan, your insurance company will reimburse you for the cost of treatment and medication so you can focus on the things that matter most, like taking care of your animal in their time of need.

Cons of Pet Insurance

Pet insurance is typically a low-cost, hassle-free way to give yourself peace of mind about your pet's health, but there are some limitations to consider before you choose a plan. 

1. Coverage Restrictions

Many pet insurance plans don’t cover pre-existing conditions, common health problems with certain breeds, routine pet care, or experimental treatments. Additionally, complications due to racing or breeding and elective or cosmetic procedures aren’t usually covered.

These restrictions help keep monthly insurance costs low, but they might mean higher out-of-pocket costs for certain pet owners. 

2. Breed and Species Restrictions

Most standard pet insurance plans can’t cover exotic pets, such as birds, reptiles, or small mammals like rabbits and guinea pigs. Additionally, some plans won’t cover certain breeds prone to illness or animals over a certain age.

Fortunately, some insurance companies offer specialty exotic pet insurance, and some insurance plans have no breed or age restrictions.

3. Upfront Payment

Pet insurance works a little differently than many other kinds of insurance. There are no copays or prior authorizations for pet insurance. Rather, you will be in charge of all payments upfront. Your insurance company will then reimburse you after your claim is approved. 

If your pet needs an expensive procedure, like an MRI or other in-depth diagnostic, you’ll need a means to cover those expenses until you receive a reimbursement from your insurance company.

Understanding Pet Insurance Premiums

Like all insurance, the monthly cost of pet insurance (monthly premium) depends on the perceived “risk” of insuring your pet. Young, healthy pets tend to have lower premiums, but older animals tend to have much higher premiums.

Your premiums may also be higher if you have a breed of dog or cat prone to certain issues, such as German Shepherds and hip dysplasia. Because your insurance company anticipates your pet costing more in the future, they’ll increase your short-term monthly premium to offset the future costs. 

Though pet insurance premiums tend to be less than $40 per month, plans can cost much more. You’ll find options ranging from just a few dollars to hundreds of dollars per month, depending on the type of animal you want to cover and the level of coverage you choose.

Do You Need Pet Insurance?

Ultimately, no one knows if they’ll need pet insurance until disaster strikes. You may end up spending more on insurance than you save on veterinary bills, but in the meantime, you won’t have to worry about paying for the top-notch care your furry friend deserves.

Fortunately, low-cost pet insurance options with high-quality coverage are available. If you are looking to protect your budget from devastating veterinary bills, get a quote for pet insurance today and save 50% off the price of Carefree Pet Plus.