How Does Pet Insurance Work?
Pet insurance helps cover unexpected vet bills, though coverage depends on the type of policy you buy.
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Written byLindsay Frankel
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Lindsay FrankelInsurance Writer
5+ years in auto insurance and personal finance writing
Featured in top personal finance publications
Lindsay is a widely published creator of auto insurance content. She also specializes in real estate, banking, credit cards, and other personal finance topics.
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Edited byKatie Powers
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Licensed auto and home insurance agent
3+ years experience in insurance and personal finance editing
NPN: 20564519
Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.
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The costs of veterinary care for your pet can add up. For a monthly payment, pet insurance can help cover some of the veterinary costs you face as a pet parent, including treatment for any accidents and illnesses your pet may have. Separate wellness coverage can even sometimes cover regular visits to the veterinarian.
Insurance coverage typically costs more for older pets with more health conditions, so it’s important to consider whether you want pet insurance when you first bring your pet home.
Here’s what you need to know about how pet insurance works.
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What is pet insurance?
Pet insurance works similarly to human health insurance in some ways. You pay a monthly premium in exchange for a certain level of coverage, which typically comes with exclusions. Policies also come with an annual deductible, the share of the cost you’re responsible for each year if your pet needs treatment.[1]
But health insurance networks don’t exist for pets. Your pet insurance company will reimburse you after approving your claim, regardless of the veterinarian you visit. In that sense, it’s similar to property insurance.
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How pet insurance works
Pet insurance reimburses you for your pet’s veterinary expenses. Here’s how it works:
Purchase a policy. Choose a pet insurance company and buy a policy online. You may have a waiting period before certain coverages go into effect.
Pay for care. When your pet gets sick or injured, take it to a veterinary clinic and pay for its care.
File a claim. A claim is a request for reimbursement. Most pet insurance companies allow you to submit your claim online or in an app. You’ll likely need to upload your receipt and your pet’s medical records from the visit.
Wait for approval. Your insurer may approve your claim instantly, but some claims can take weeks.
Receive reimbursement. Your pet insurance company will pay the agreed-upon percentage of your costs minus your remaining deductible.
Keep in mind that while this is the most common process, some pet insurance companies offer the option to pay your vet directly.
Types of pet insurance and what they cover
You have a few types of pet insurance to consider. You’ll want to choose between an accident-only policy and an accident and illness policy, and you’ll also need to decide if you want to add wellness coverage.
Accident and illness coverage
Accident and illness policies offer the broadest coverage. They generally cover the diagnostics and treatment of illnesses, like infections or cancer, as well as accidents, such as broken bones or accidental poisoning.
Some companies might not cover behavioral conditions, dental illnesses, or hereditary conditions and instead may offer these coverages as add-ons.
Accident-only coverage
Accident-only coverage is typically more affordable than accident and illness coverage, but it only covers accidents. Coverage typically includes treatment for accidental foreign body ingestion, bite wounds, poisoning, broken bones and sprains, cuts and abrasions, torn nails, and other accidental injuries. Some plans also include tooth extractions for dental accidents.
Wellness coverage
Wellness coverage generally isn’t subject to the same reimbursement rates, annual limits, or deductibles as pet insurance. It covers all routine care and preventative care up to a maximum amount, and insurers typically offer it as add-ons to the other types of pet insurance.
Wellness plans typically cover routine veterinary exams, vaccinations, preventative medication, and sometimes dental cleanings. Since you can foresee wellness expenses, you can also cover them with savings instead of purchasing a wellness plan.
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What pet insurance doesn’t cover
Pet insurance doesn’t cover all types of veterinary care, including treatment for pre-existing conditions, breeding costs, cosmetic surgeries, and more.
Pre-existing conditions: Insurers usually won’t cover treatment for pre-existing conditions your pet has before your policy starts — unless it’s a curable condition of which your pet has been symptom-free for a certain amount of time. Some insurers consider bilateral conditions, like hip dysplasia, pre-existing if they occur before the policy’s effective date. AKC Pet Insurance is an exception — the company covers pre-existing conditions after a one-year waiting period.[2]
Breeding costs: Most pet insurance plans don’t cover breeding or pregnancy-related health complications. But some companies may offer breeding coverage as an add-on.
Cosmetic surgeries: Most pet insurance policies don’t cover procedures that aren’t medically necessary. These include cosmetic surgeries, such as declawing, tail docking, and ear cropping.[3]
Other common exclusions: Insurers typically exclude coverage for dental illnesses, behavioral problems, and hereditary and congenital conditions.[4]
Factors to consider when choosing pet insurance
When deciding what pet insurance is best for your pet, consider several factors. Here are a few of the most significant factors to consider as you start your search:
Cost: You’ll want to compare quotes from different companies selling pet insurance to see which company has the best coverage for your pet at the cheapest price.
Coverage options: Pet insurers typically offer three main types of coverage: accident and illness, accident only, and wellness coverage. Learn more about what these coverages entail, how much they cost, and other general policy descriptions about exclusions and pre-existing conditions.
Pet age and breed: Your pet’s age and breed may affect the type of coverage you should buy — and how much you’ll have to pay for that coverage.
Company reputation: You should always take a look at customer satisfaction and reviews to see how current and former policyholders feel about the company’s customer service and coverage offerings.
How much does pet insurance cost?
The average cost of pet insurance — specifically an accident and illness policy — is $56 per month for dogs and $32 per month for cats in the U.S.[5]
How much you pay for pet insurance will depend on a number of factors, including what type of coverage you buy, your location, and your pet’s age, breed, gender, and medical conditions.
Average cost of pet insurance for dogs
Quotes are from nine companies for a 2-year-old, medium-sized male mixed-breed dog living in Hartford, Connecticut, with prices rounded to the nearest dollar. Spot’s base policy offers broader coverage than Lemonade’s, though the cost is more than double.
Insurance Company  | Average Monthly Cost |
|---|---|
| Lemonade | $24 |
| Figo | $25 |
| Pets Best | $30 |
| Nationwide | $33 |
| Healthy Paws | $38 |
| ASPCA | $44 |
| Embrace | $46 |
| Spot | $49 |
| Trupanion | $63 |
Actual quotes may vary based on the policy buyer's unique profile.
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Best Pet Insurance for Dogs (2025)
Average cost of pet insurance for cats
Quotes are from nine companies for a 2-year-old female American shorthair cat living in Hartford, Connecticut, with prices rounded to the nearest dollar. Figo offers the cheapest coverage for cats, while Embrace is the most expensive.
Insurance Company | Average Monthly Cost |
|---|---|
| Figo | $13 |
| Lemonade | $14 |
| Healthy Paws | $18 |
| Nationwide | $18 |
| Pets Best | $20 |
| ASPCA | $23 |
| Trupanion | $24 |
| Spot | $26 |
| Embrace | $32 |
Actual quotes may vary based on the policy buyer's unique profile.
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Best Pet Insurance for Cats (2025)
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How to find cheap pet insurance
Health insurance for your pet can be costly, but pet owners can reduce their premiums in the following ways:
Compare quotes
Some companies may offer a lower premium than others for the same coverage. The easiest way to find the lowest price for the coverage you need is to get quotes from a handful of pet insurance companies.
Look for discounts
Some pet health insurance companies may offer discounts, like multi-pet or military discounts. If you’re eligible, account for the discount when comparing insurers.
Reduce your coverage
You may opt for a lower reimbursement amount or lower annual limit to reduce your premium. But be aware that you’ll have to spend more out of pocket when you file a claim.
Skip the add-ons
Many pet insurers offer add-ons that can be expensive. If you don’t need the coverage, skip it. For example, adding exam fee coverage may not be worth the cost.
Raise your deductible
Choose a higher deductible for a lower premium — just make sure you have enough saved to cover your share.
Insure your pet at a young age
Premiums are lower for younger pets. And if you buy insurance for a puppy or kitten, you’re less likely to have a pre-existing condition to worry about — that means more coverage for less.
Get an accident-only plan
An accident-only policy is a more affordable solution and may be a wise choice for older pets or pets with pre-existing conditions.
Pet insurance FAQs
Understanding how pet insurance works can help you determine the right pet insurance policy for your pet’s needs and medical issues. The following information can help answer your remaining questions about available pet insurance products.
What does pet insurance actually cover?
Depending on the type of policy you buy, pet insurance can cover veterinary services related to an unexpected accident, like a broken bone, and illnesses, like cancer.
A comprehensive policy can typically cover medical costs, including exams, X-rays, prescription medications, lab work, blood tests, procedures, and emergency surgery. Add-on wellness coverages can sometimes cover routine vet visits, annual wellness exams, and preventive care.
How does pet insurance work when you go to the vet?
Pet insurance works on a reimbursement model. You’ll pay all the costs for your vet visit up front and submit a pet insurance claim to your pet insurance company for reimbursement. Exactly what your insurer covers will depend on your policy, insurance company, and the remaining balance on your deductible.
What are the disadvantages of pet insurance?
Standard pet insurance has some exclusions, like pre-existing conditions, an upper age limit, and routine care. You’ll also typically face up-front costs for vet care before your insurer can reimburse you for your pet’s care.
How do pet insurance deductibles work?
A pet insurance deductible is how much money you pay out of pocket for veterinary care costs before your coverage kicks in to pay for eligible expenses. You’ll typically have a lower monthly premium if you increase your deductible.
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Sources
- National Association of Insurance Commissioners. "Pet Insurance."
- American Kennel Club. "What Is a Pre-Existing Condition in the World of Pet Insurance?."
- Illinois Department of Insurance. "Pet Health Insurance."
- Washington State Office of the Insurance Commissioner. "Pet Insurance."
- North American Pet Health Insurance Association. "Average Premiums."
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Lindsay FrankelInsurance Writer
Lindsay Frankel is a content writer specializing in personal finance and auto insurance topics. Her work has been featured in publications such as LendingTree, The Balance, Coverage.com, Bankrate, NextAdvisor, and FinanceBuzz.
Lindsay has been a contributor at Insurify since October 2022.
Licensed auto and home insurance agent
3+ years experience in insurance and personal finance editing
NPN: 20564519
Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.
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