Nearly five million cats and dogs are covered by their owners with pet health care insurance, almost double the number of pets five years ago. Pet insurance is a godsend when your pet unexpectedly has an expensive ailment or accident, but the coverage isn’t cheap. So, is it worth it?
Pet insurance by the numbers
Despite five million covered pets, there are an estimated 65 million households with dogs and nearly 47 million with cats. According to pet insurance experts, the average dog owner spends just over $700 in combined routine and surgical care per year, and cat owners spend an average of over $400.
Pet health insurance works just like human health care insurance. You have an annual deductible. Once you’ve met it for the year, the insurance company pays 70 to 90 percent of medical costs, and you pay the remainder. Often, there is a maximum payout, such as $5,000 for the year.
Pet insurance is designed to cover accidents and illnesses. It does not cover routine care such as wellness checks, teeth cleanings or spaying and neutering surgeries.
The average monthly premium is around $53 for dogs and $32 for cats. Rates go up as the pet ages.
Weighing the costs
So, is pet insurance worth the years of premiums?
If your dog needs surgery after an accident or radiation for cancer, your bill could be in the thousands without insurance. On the other hand, your pet may live a long, healthy life and, like humans, have high medical bills only at the end of life. You could spend money on premiums for years before ever needing to use coverage. Could you have saved money over the years and “self-insured” against a big future bill?
How to decide
If your pet is young and healthy, you could wait for a few years to buy insurance. Once the pet ages, you could purchase insurance; however, premiums will be higher.
You can make a better-informed decision by researching your pet’s breed and life expectancy, the particular health problems that affect that breed, and at what age these conditions arise.
Figure how much money you could save each month over the years toward having a self-insured account to draw upon when needed, and compare that to the cost of likely health conditions your pet could develop with age.
Related – How to Choose the Best Vet for Your Pet
