What To Look for When Shopping for Pet Insurance

Out-of-Pocket Costs and Factors That Affect Pricing

It’s important to look at all of the out-of-pocket costs, and the factors that influence how much you’ll spend versus how much the insurance will cover when your pet sees the veterinarian.

Here’s a breakdown of the main out-of-pocket costs to look for as you compare pet insurance companies and their plans:

• Premium – This is the amount you’ll pay, usually monthly or annually, to keep the plan active. Factors that can affect it include your pet’s breed, age, and location, in addition to the amount of coverage you want. Be aware that this rate won’t always be the same. Some companies might raise the premium annually as your pet gets older, or they might raise it if your pet is diagnosed with a chronic condition. Ask about premium increases so you’ll have a better idea of what to expect.

• Deductible – This is the amount you’ll need to pay at the vet before the insurance provides coverage. It might be for each incident/illness/condition or it might be an annual deductible. You might be able to adjust your deductible when choosing a plan, and the premium is often affected based on whether you go with a high or low deductible. Before deciding on a plan, confirm how much your deductible will be and if/when it will reset.  

• Coinsurance or reimbursement rate – This is the amount of the cost you’ll share with the insurer. It tells you how much of the bill your insurer will cover after you’ve met your deductible. For instance, if you have a 50% coinsurance, you’ll need to pay half of the vet expenses while your insurance covers the other half. As you shop, you might be able to adjust this rate like you can adjust your deductible, and doing so may impact the premium.

• Limits – There may be restrictions on how much an insurer will spend, so look for limits or maximums. For instance, a plan might only cover up to $15,000 a year, after which you’d be responsible for 100% of your veterinary bills until it resets the following year. Or, there might be a limit on the amount your insurer will pay during your pet’s lifetime, and once that limit is reached, it doesn’t reset. There might even be a per-incident limit, which would limit the amount paid to cover the treatment of a condition.   

Some insurers give you more flexibility when deciding how much you want in terms of coinsurance, deductibles, and limits, so you might be able to find customizable options that fit your budget.

Also, you may find providers that are willing to give discounts. For example, if you enroll more than one pet, you might save money.

What’s Included

In addition to carefully analyzing all out-of-pocket costs, check the details of any plan you’re considering to know exactly what will be covered.

Here are some of the main categories of coverage you’ll see as you shop for pet insurance:

• Wellness: Not all plans cover preventive care, such as annual wellness exams, routine care, and dental care. However, some insurers offer this if you pay for additional coverage.

• Accident: This type of plan will cover injuries and certain emergencies.

• Accident and Illness: This type of plan will cover accidental injuries and emergencies, as well as acute and chronic illnesses.

Always confirm if and when exam fees, diagnostic tests, emergencies, surgeries and procedures, medications, prescription foods, alternative therapies, and hospitalizations will be covered.

You can also ask insurers about coverage for behavioral problems, genetic or hereditary diseases, and congenital conditions.

Some insurers will even cover telemedicine for added convenience. 

Bottom line: As you shop, read the fine print to really know what you’re getting.

What’s Excluded

Checking what’s excluded is just as necessary as confirming what’s included in a pet insurance plan.

Here are some of the things that might not be covered:

• Pre-existing conditions: If your pet was diagnosed with a condition in the past, before you had insurance, the plan might not cover it. It’s wise to contact an insurer to find out what would be considered a pre-existing condition, and to determine if there’s any coverage for this category. 

• Hereditary and congenital conditions: A plan might exclude genetic or hereditary conditions. Also, if your pet was born with a health problem, it might not be covered.

• Breed-specific conditions: If you have a purebred dog or cat, and the breed is at higher risk of developing certain ailments, those conditions might not be covered.

• Senior pets: Some insurers won’t allow you to open a new plan for an older pet, so check age restrictions.

Waiting Periods

Oftentimes, pet insurance plans will have waiting periods that vary in length. You won’t receive any coverage until the waiting period has passed.

As is the case with out-of-pocket costs and exclusions, read the fine print when it comes to waiting periods. For example, some insurers might not impose waiting periods for certain categories of coverage, such as accidents. And some insurers won’t cover any health problems that are diagnosed during a waiting period, as they’ll categorize those as pre-existing.

How Veterinarians Are Paid

Some insurers will pay vets directly—if that’s the case, it’s a good idea to confirm that your vet, specialist, or emergency clinic accepts the insurance. Other insurers expect you to pay the amount in full to your veterinarian and then wait to be reimbursed for the percentage that’s covered.

When comparing plans, find out how claims need to be filed, and how long it takes for claims to be processed and payments or reimbursements to be made. Also look into customer service hours, in case you need help with a claim or coverage.

Peace of Mind for Your Pet’s Health and Your Wallet

In addition to pet insurance, you can also give yourself greater peace of mind with high-tech products that help you track your pet’s health at home.

For example, the Petlibro Luma Smart Litter Box is an automatic litter box that helps you track each cat’s weight and litter box habits so you can take action promptly if anything changes and warrants a vet visit.

Another example is the Tractive Smart Dog Tracker, which helps you keep track of your dog’s sleep patterns, activity, heart and respiratory rates, and barking to take note of changes that need a vet’s attention.

Pet insurance may help you save money when it comes to veterinary bills, but it’s important to shop with care to select the plan that fits your budget and gives you the coverage you really need. Read reviews, ask plenty of questions, and compare plans carefully by checking all the details.

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