Do I Really Need Pet Insurance? What Every Pet Owner Should Know – Forbes Advisor – Technologist

Imagine this: Your playful puppy swallows a sock and the vet recommends emergency surgery to treat the intestinal blockage. The potential cost? Anywhere from $2,000 to $10,000.

As a pet owner, unexpected medical expenses can be overwhelming—not only are you worried about your pet’s well-being, but you’re also facing significant costs.

With veterinary costs rising, more pet owners are turning to pet insurance for peace of mind. By the end of 2023, 6.25 million pets were insured in North America—a 16.7% increase from the previous year and more than double the number in 2019, according to the North American Pet Health Insurance Association (NAPHIA).

This raises an important question: Is pet insurance a must-have or just another unnecessary expense? Here’s what every pet owner should know before making a decision.

Get the coverage your pet needs

Save big on tests, vaccines and essential care

Maximum annual coverage

$5,000, $10,000, $20,000, $50,000, $100,000

Reimbursement choices

70%, 80%, 90%

Vet Care Costs

One of the top reasons pet owners opt for insurance is to protect against unexpected medical expenses. Veterinary care costs have been rising rapidly, with prices increasing by 6.3% from July 2023 to July 2024—more than double the average rise seen across other consumer goods, according to the U.S. Bureau of Labor Statistics.

While routine visits like annual check-ups might not break the bank, unexpected accidents or emergencies can quickly lead to bills that stretch into the thousands. Here’s a breakdown of what some veterinary procedures might cost you:

Given that even a standard vet visit for something like an ear infection can cost between $100 and $150, it’s easy to see how expenses can quickly pile up. With an average monthly price of $51 for dogs and $27 for cats, pet insurance may help you focus on your pet’s health rather than the size of the vet bill.

It’s not just for emergencies either—pet insurance can also make routine care more accessible, encouraging regular check-ups and early intervention to help prevent severe health issues later on.

Ultimately, pet insurance doesn’t just protect your wallet—it can offer peace of mind, helping you avoid heart-wrenching decisions between your finances and your pet’s well-being.

Pet Insurance Plans

Pet insurance plans typically fall into two categories: accident-only and comprehensive, each offering different levels of coverage depending on your needs.

• Accident-only plans: These can cover injuries related to accidents, such as fractures, bites or swallowed objects.
• Comprehensive plans: These plans can cover both accidents and illnesses, including many chronic conditions like allergies or cancer, as well as common ailments like ear infections.

Beyond these two main types of plans, some pet insurance companies let you customize your policy with wellness add-ons and packages for routine and preventative care.

For example, Lemonade pet insurance allows you to select from various optional add-ons to round out your accident and illness plan, including coverage for vet visit fees, dental illness, behavioral therapy, physical therapy and end-of-life expenses, in addition to packages that can help cover the expected costs of routine vet care. You can also customize your reimbursement rate, deductible and coverage limit, which can give you more control over your monthly premium and level of coverage.

Most pet insurance policies work on a reimbursement model. After paying your vet bill, you’ll submit a claim and can receive reimbursement based on the specifics of your plan—minus any deductible or co-insurance.

As with any insurance policy, it’s important to review the fine print. Policy exclusions may include pre-existing conditions, breed-specific health issues and elective procedures such as cosmetic surgeries. Understanding these limitations can help you avoid any surprises when filing a claim.

Other Factors That Can Affect Pet Insurance

Several factors can affect your pet’s insurability and the cost of your policy, including:

• Your pet’s age and breed: These two factors can significantly impact health risks and insurance costs. Older pets typically have higher premiums, while insuring a young pet early can lock in coverage before any health issues arise. Certain breeds may have higher premiums due to predisposed health conditions, which can make insurance even more worthwhile.
• Your risk tolerance: Consider how comfortable you are with facing large, unexpected veterinary expenses. If expensive vet bills are a major concern, pet insurance may help manage risk by spreading the cost over manageable monthly premiums.
• Lifestyle considerations: Your pet’s lifestyle can impact the importance of having insurance. Highly active pets, such as dogs that frequently go hiking or spend a lot of time outdoors, might be more prone to accidents or injuries, potentially making insurance more valuable.
• Coverage type, limits and deductibles: Pet insurance policies can vary widely in terms of coverage and cost. While an accident-only policy may suffice if your main concern is emergency care, a comprehensive policy could be better if you want to cover illnesses and potential chronic conditions like cancer. Take the time to carefully consider coverage limits and deductibles, as these will help determine your monthly premiums and out-of-pocket costs.

It’s also worth exploring options to make pet insurance more budget-friendly. Lemonade, for instance, offers a multi-pet and bundle discount for policyholders with Lemonade renters, homeowners, car or term life insurance. These savings can go a long way in making pet insurance more affordable, helping you get the coverage you need without breaking the bank.

Should You Invest in Pet Insurance?

Pet insurance can help offset the financial burden of unexpected veterinary bills, but it’s not a one-size-fits-all solution. Whether it’s right for you depends on factors like your pet’s age, breed and activity level, as well as your comfort with potential vet expenses.

Many pet owners find insurance valuable for young, active pets or breeds prone to costly health issues. For others, it offers peace of mind, knowing they won’t have to choose between their savings and their pet’s health in case of an emergency. If you decide to get pet insurance, consider comparing different plans and providers.

Fortunately, shopping for pet insurance can be easier than ever. Companies like Lemonade aim to offer a seamless digital experience, letting you choose coverage options, get quotes and sign up within minutes—all from the comfort of your couch. This convenience can make it easier to find a policy that meets your pet’s needs and aligns with your financial goals.

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