How to insure your pet today, even on a tight budget
If you’re familiar with the many gaps in typical pet insurance policies, you could be forgiven for wondering if it’s worth the cost. It can certainly be helpful, especially when you consider that an emergency visit can cost up to an eye-watering $10,000! But when the price of pet care is rising at a much faster rate than the average American’s income, we know how important it is to feel that your pet insurance policy delivers value. As we’ll discuss in this article, there are thankfully plenty of ways to make sure yours does.
The problem with pet insurance
Pet insurance can be a big help in a crisis, but we know it’s not a perfect system. As we broke down in our article, Challenges and Opportunities in Pet Insurance, even the most comprehensive policies don’t cover everything. The average reimbursement rate is 80%, for example, but when the average deductible is $250 and the average emergency room visit costs $1,500, that can still leave you heavily out of pocket. Additionally, unlike our human health insurance, you’ll usually have to pay the vet upfront and claim it back. With 37% of Americans reporting less than $400 in savings, that’s something many people aren’t in the position to do.
Adding to this problem is the fact that routine veterinary care rose by 11% between July 2022 and July 2023, according to the Bureau of Labor Statistics’ Consumer Price Index. Meanwhile, wage growth is lagging far behind that at just 4.6%. For people on the lower end of the wage scale, that’s making it increasingly harder to plan for their pet’s healthcare needs financially.
In a nutshell, it costs more to keep your pet well with preventative vet care, more to insure them, and more to cover your proportion of the costs if you ever need to make a claim, and yet your income is not rising nearly enough to keep up. For some pet parents, that’s leading to difficult decisions about their pet’s care.
It’s not all bad news, though! For budget-conscious pet parents who want the best for their furry friends, we’ve shared 12 of our best tips and strategies to help you find a policy packed with value.
12 strategies to get even more value from pet insurance
Get up to speed on how pet insurance works
Insurance can be a complicated topic to navigate, but knowing even the basics can help you to get better coverage and avoid common gaps and pitfalls. Check out our article Challenges and Opportunities in Pet Insurance, where we break down the basic elements of insurance and what they mean for you. And if you have questions about anything at all when you’re considering an insurance policy, be sure to ask your provider as many questions as it takes to make things crystal clear.
Research common health problems in your pet’s breed
Some dog and cat breeds are more prone to certain health conditions. For example, “brachycephalic” dog breeds like bulldogs are susceptible to skin infections and respiratory issues. Due to the increased risk of a claim, some insurers will refuse to cover (“exclude”) these conditions for high-risk breeds, while others will limit the amount they’ll pay out.
It’s not always clear in the sample policies insurers provide before you sign up, as they’re designed to give general information that applies to all breeds. So before you sign anything, make sure to ask explicitly if your pet will be subject to any exclusions or limits because of their breed.
Tailor your policy to your pet’s risk level
If your pet is low-risk (young and not susceptible to any expensive conditions) then you can keep your premiums low by choosing the highest deductible and the lowest reimbursement and annual/per-incident limits you can afford.
If you have an older pet or one at higher risk of certain conditions, then the reverse is true — choose higher limits and reimbursement rates and lower deductibles. You’ll pay higher premiums now, but you’ll have more of a financial buff er later if your pet needs treatment.
When choosing your policy elements, it’s important to be realistic about what you can afford to pay if you make a claim. We have a tendency to underestimate the likelihood of things going wrong, while overestimating our ability to pay for them! It’s better to pay out a little more on the premiums upfront if you think you might struggle later.
Consider accident-only coverage
There are two types of insurance: accident and illness cover, or accident-only cover. The cost of treating some of the most common illnesses in pets can reach up to $5,000, so we always recommend comprehensive accident and illness coverage where possible. However, we recognize that comprehensive cover is a more expensive option. According to NAPHIA, the average accident-only premium for dogs is $200.58, compared to $640.04 for accident and illness.
So if you’re struggling with the cost of pet insurance, accident-only is certainly better than none at all. If you do choose this option though, we recommend upgrading to accident and illness cover as soon as your finances allow. This is especially true if you have an older or higher-risk pet.
Start your policy when your pet is young
As you know, most insurance policies have limited coverage – or none at all — for pre-existing conditions. But if your pet develops a health condition while they’re insured, the Pet Insurance Model Act 2022 says that it shouldn’t be treated as a pre-existing condition when it comes time to renew, and your premiums shouldn’t go up as a result. The risk of many health conditions goes up as your pet gets older, so getting them insured as young as possible means they’ll be covered if and when they need it. And with some insurers, you may also benefit from long-term loyalty discounts or bonuses.
Get your pet spayed or neutered
Many insurers will o ffer a small discount on your premiums if your pet is spayed or neutered. That’s because spayed and neutered pets are less likely to stray, get into fights, and experience certain health issues, lowering the chances of you making a related claim.
Take advantage of discounts for annual payment
Monthly payments are a great way to spread the cost of your annual pet insurance premium, but insurers will often charge you more overall for the privilege. Compare the annual vs monthly cost of your policy and see how much you can save by paying for the whole year upfront.
Ask about multi-policy discounts
If there’s more than one pet in your home, some insurers will incentivize you to insure all your pets with them by offering you a multi-pet discount of up to 10%. Similarly, insurance companies sometimes off er discounts for bundling other policies like your home, car or travel insurance. Ask your insurer what off ers they have.
Check with your employer
The Society for Human Resource Management says that 11% of US employers off er pet insurance as part of their benefits package. You might also be able to get a discount through your union. For example, the National Education Association (NEA) provides a 5% discount through certain insurers, and Union Privilege off ers their members a 10% discount.
Skip the wellness add-on
For an additional premium, many insurers off er a wellness add-on to contribute to your pet’s general wellness care. These might include things like flea preventatives, dental cleanings, annual check-ups or vaccinations. However, some sources believe that in most cases, it’s cheaper to pay for these services as you use them.
Now we’re not suggesting that you skip preventative and wellness care – quite the opposite! It can reduce the risk of your pet getting sick, which means you can also benefit from a diminishing deductible, where your premiums reduce for every year that you don’t make a claim. But if funds are extra-tight, it’s one area where experts believe you can potentially save.
Get your friends and family on board
Come from a big family of cat people? Got plenty of buddies at the dog park? Then take advantage of referral programs that give you cash rewards and discounts for signing up your friends and family.
Always shop around
Do you put your pet insurance on auto-renew? If so, you could be missing out on the seriously tempting deals that insurance companies o er at renewal time, designed to lure you away from your current insurer. Use a comparison tool like Pawlicy Advisor to quickly scan through the options and make sure you’re getting the best price.
Get peace of mind without the high price tag
We know that when times are tough, pet insurance can sometimes feel like a luxury rather than a necessity. After all, you’re spending money you need right now for a “what if” situation that might never happen! But with one in three pets every year needing emergency treatment, chances are it could. And if it does, we don’t want you to be among the 41% of pet parents going into debt to pay for it. By following the tips in this article, you can ease the cost of pet insurance and get the priceless peace of mind that comes with knowing your pet is protected.
