How does pet insurance work?
Pet health insurance lowers the overall cost of medical bills after unexpected accidents or injuries. Most pet insurers offer coverage for accidents and illnesses, but many also have coverage options for routine and preventative care. That means a good pet insurance policy can provide financial accessibility for all of a pet ’s needs. There is a perfect pet insurance plan for every family, from coverage for yearly checkups to hip dysplasia treatments.
Some pet insurance providers go above and beyond with coverage. Companies like Petplan even cover non-medical costs. These include boarding kennel fees, monetary loss due to pet theft, or even the price of a canceled vacation due to a sick pet. Many providers, like Embrace, Figo, and AKC, give policyholders access to a 24/7 pet health hotline, which connects them to on-call veterinarians.
Most providers use a reimbursement model, which means pet owners would pay all vet bills up front. The insurance company would repay a portion of the vet bill, depending on the chosen plan. Most providers offer a payout between 70 and 90 percent of the qualifying vet bill —some even offer 100 percent reimbursements. Luckily, many pet insurance companies are beginning to provide vet-direct pay, which offers even more financial accessibility. Companies like Pets Best, Trupanion, and Healthy Paws offer vet-direct pay. But for policies that don’t provide that option, the Care Credit card pairs great with insurance plans for quick medical financing.
Pet insurance reimbursements usually have a maximum amount of money they are willing to pay every year, but some companies offer an unlimited annual maximum. That means customers who purchase a plan with a $15,000 payout limit would have to pay any vet bills out of pocket after reaching the $15,000 limit. Although it may seem like a lot of money, $15,000 can go quickly if a pet contracts a chronic condition that requires constant treatment, like cancer or heart disease.
Policyholders are usually required to meet an annual deductible just like with human health insurance. These typically range from $100 up to $1,000 and must be paid before the insurance plan kicks in. That means pet owners might have to pay for multiple vet visits before they qualify for any reimbursements.
When deciding on a pet insurance policy, the most crucial factor is the specific treatments the plan will cover. Pet owners have to decide if they want accident and illness coverage or wellness coverage. Many companies let policyholders have full coverage by purchasing a wellness plan as an add-on, which would reimburse treatments like vaccinations. Companies like Pets Best even offer accident-only coverage, which won’t cover any illnesses.
No pet insurance providers currently cover pre-existing conditions, which can be detrimental for sick or older pets. Fortunately, many companies, like Embrace, Petplan, and PetFirst, are starting to reinstate coverage for certain cured pre-existing conditions. These are usually common diseases that haven’t required treatment for 365 days, like ear infections or symptoms without a diagnosis. Many companies will also not cover dental conditions, which might go overlooked in a policy. Dental diseases, like periodontal disease or gingivitis, can rack up steep vet bills and wreak havoc on a pet’s mouth.