How to Buy Pet Insurance

1. Determine Which Type of Pet Insurance You Need

Not all pet insurance coverage is created equally. Here's a brief overview of the three main types of pet insurance plans you can choose from.

• Wellness: Think of a wellness plan as the pet equivalent of an annual physical or well-check. You use it before an emergency to help pay for preventive care, such as annual check-ups, vaccinations and dental cleanings to keep your pet healthy.
• Accident-only: Covers diagnostic procedures, such as ultrasounds and bloodwork, and treatment for injuries resulting from unexpected accidents, including falls, animal bites, car crashes and eating poisonous substances. It doesn't cover the cost of treating your pet if it gets sick.
• Accident and illness: This type of plan covers diagnostic procedures and treatment for accidental injuries and illnesses.

Tip: Evaluating the services you're most likely to need can help you select the right plan for your pet. Some insurers may allow you to add wellness coverage to an accident-only or accident and illness plan for more comprehensive coverage.

2. Understand Insurance Policy Details

Before buying a policy, it's important to understand how pet insurance works so there aren't any surprises if your pet needs treatment. If you have a health insurance plan for your non-furry family members, these terms will probably be familiar to you.

• Coinsurance: Coinsurance is the amount you have to pay for your pet's treatment after meeting your deductible. Amounts generally range from 0% to 40%, depending on the plan. If you opt to pay for a larger share of your pet's medical bills, your premium will likely be lower.
• Deductible: Deductibles for pet insurance vary by plan and often range from $100 to $500. Plans with higher deductibles usually have lower premiums but higher out-of-pocket costs if your pet needs treatment. Selecting a lower deductible increases your premium.
• Exclusions: Pet insurance often excludes coverage for treatment related to preexisting and hereditary conditions. Policies may also have other exclusions, so it's important to know what is and isn't covered before purchasing a plan.
• Policy limits: Some plans have per-incident, annual or lifetime caps that limit the amount the insurer will reimburse you. Once you reach this amount, the insurance company won't pay for additional treatment.
• Premium: The average annual cost of an accident and illness policy in 2024 was about $750 for dogs and $387 for cats, according to the North American Pet Health Insurance Association. Rates vary by insurer, and many factors influence premiums, including breed, age and where you live. Some companies might even consider your credit scores if your state allows it.
• Reimbursement rate: The reimbursement rate is the amount the insurer pays for covered services and generally ranges from 60% to 100%. Some companies set reimbursement rates by service, while others reimburse you for a portion of your total out-of-pocket costs, regardless of your pet's treatment.
• Waiting period: Most pet insurance plans have a waiting period, which varies based on your state. Common waiting periods include two days for accidents, 14 days for illness, 30 days for orthopedic conditions and six months for cruciate ligament injuries. The plan won't cover their treatment if your pet gets sick or injured during the waiting period.

Tip: If you have a puppy or kitten, insuring them early can lock in lower premiums and broader coverage before preexisting conditions arise.

3. Research Insurance Providers

Some traditional insurance companies offer pet insurance. If you already have home or auto insurance, it may be worth checking with your current provider to see if they also offer coverage for your pet. If not, specialty pet insurance companies or nonprofit organizations like the American Society for the Prevention of Cruelty to Animals (ASPCA) or the American Kennel Club (AKC) may have a plan that meets your pet's needs.

Tip: Look for companies that offer services you're likely to need based on your pet's breed and age.

4. Get Several Quotes

Before buying insurance, it's a good idea to get quotes from multiple providers. Pricing varies by breed, age, insurer and other factors, and shopping around is a simple way to find the lowest rates for the coverage you need.

When comparing quotes, pay special attention to each policy's covered services, exclusions, deductibles, reimbursement rates and plan maximums. A plan with an ultra-low premium may cost you more in the long run if it has a low reimbursement rate or excludes coverage for the services you use most. Depending on the age and health of your pet, it may be worth paying more for coverage to get additional protection.

Tip: Ask about discounts. Some companies offer discounts to military members and senior citizens. You may also qualify if you insure multiple pets or are a member of certain organizations like AAA or the National Education Association.

5. Enroll in a Policy

Once you've chosen the policy that's best for you, you can typically enroll online by providing some basic information about you and your pet. The term for a typical pet insurance policy is 12 months, but most insurers don't require you to pay the entire premium upfront. After you make a payment and the waiting period is over, you can start using your pet insurance benefits.

Tip: Be prepared to pay your pet's vet bills out of pocket. You generally need to pay for care upfront and submit a claim for reimbursement.

Frequently Asked Questions

The Bottom Line

Pet insurance can help reduce out-of-pocket vet expenses and keep your finances on track if your animal is in an accident or gets sick. Plus, it can provide peace of mind, knowing you'll be able to afford treatment if your pet needs it.

Comparing quotes, covered services, reimbursement rates, deductibles, exclusions, plan maximums, waiting periods and other plan details from multiple providers can help you find a plan that meets your needs and fits your budget.