That\u2019s significant growth, but the industry still covers only a small fraction of American pets. In the U.S., there are an estimated 65 million households with dogs and nearly 47 million households with cats, according to the 2023-2024 American Pet Products Association National Pet Owners Survey.<\/p>\n\n\n\n <\/p>\n\n\n\n The average annual cost for an accident and illness policy is about $640 for dogs and $387 for cats, according to NAPHIA data from 2022[1]<\/sup>, the most recent available. That works out to about $53 a month for dogs and $32 a month for cats.<\/p>\n\n\n\n If you choose an accident-only policy, the annual cost drops to $201 for dogs and $122 for cats. Such plans will cover treatment if your pet is hit by a car or swallows something poisonous, for example, but won\u2019t pay if they get sick.<\/p>\n\n\n\n Premiums may vary significantly based on your pet\u2019s age and breed, the cost of veterinary care where you live and the insurance policy you choose.<\/p>\n\n\n\n Be aware that rates tend to increase as your pet gets older and more prone to health issues. If the plan gets too expensive for your budget, you might end up canceling the coverage just when your pet is starting to need it most.<\/p>\n\n\n\n To see how much rates might rise over time, we checked sample quotes from Pets Best, one of NerdWallet’s best pet insurance companies, for a Labrador retriever in Katy, Texas. Here are the monthly prices we found for a policy with a $5,000 annual limit, $500 deductible and 80% reimbursement level:<\/p>\n\n\n\n <\/p>\n\n\n\n <\/p>\n\n\n\n That may not seem too dramatic when you see the increases monthly, but here\u2019s how your average annual cost would change over 12 years of your dog\u2019s life:<\/p>\n\n\n\n <\/p>\n\n\n\n In the end, you\u2019ll likely pay thousands of dollars for insurance if you maintain the policy over the life of your pet.<\/p>\n\n\n\n Remember that these are sample numbers for one pet insurance company in one ZIP code. Your price will vary, so it\u2019s worth shopping around.<\/p>\n\n\n\n <\/p>\n\n\n\n So what do all those premiums get you? Though insurance can be a godsend if your pet is facing an expensive diagnosis, your plan likely won\u2019t reimburse every dollar you spend at the vet.<\/p>\n\n\n\n Most policies come with an annual deductible, the amount you\u2019re responsible for before the insurer starts paying. Once you\u2019ve met your deductible, most plans pay out a certain percentage of your vet bill \u2014 typically 70%, 80% or 90%. And you may be subject to an annual maximum payout.<\/p>\n\n\n\n Say you have a $500 deductible on a plan that pays up to $10,000 per year and reimburses 80% of your costs. If your dog needs a $2,000 surgery and you haven\u2019t put anything toward the deductible yet, your plan would pay $1,200. Here\u2019s the math:<\/p>\n\n\n\n $2,000 – $500 deductible = $1,500. 80% of $1,500 = $1,200.<\/p>\n\n\n\n You can often customize your plan with a lower deductible or higher reimbursement rate, but your premium will go up accordingly.<\/p>\n\n\n\n Even if you find a plan with no annual limit and 100% reimbursement, it still might not pay you back for every veterinary expense.<\/p>\n\n\n\n For example, most plans won\u2019t cover spay or neuter surgery unless you\u2019ve bought an add-on for wellness and preventive care. The same goes for vaccinations, annual checkups and teeth cleaning. Insurance is designed to cover unexpected expenses, not routine costs associated with pet ownership.<\/p>\n\n\n\n But pre-existing conditions are perhaps the most important exclusion in just about every pet insurance plan. Pet insurance generally covers only new injuries or illnesses, not conditions the animal has before the policy takes effect. So don\u2019t try buying pet insurance to pay for your cat\u2019s chemotherapy after they were diagnosed with cancer \u2014 it probably won\u2019t be covered.<\/p>\n\n\n\n That\u2019s why pet insurance may be more valuable for pets who are young and healthy than those who already have a chronic condition or two.<\/p>\n\n\n\n Pre-existing conditions can also be a problem if you let your policy lapse. Say you\u2019re out of work for a few months and can\u2019t pay Fluffy\u2019s premiums. If you reinstate their coverage later, all their previous ailments will count as pre-existing conditions, even those the earlier plan covered.<\/p>\n\n\n\n For more details on what\u2019s covered and what\u2019s not, see our guide to pet insurance coverage.<\/p>\n\n\n\n Dog owners spend an average of $472 each year on surgical vet visits and $250 each year on routine vet visits, according to 2022 survey statistics from APPA. Cat owners have lower annual expenses on average, spending $232 on surgical vet visits and $198 on routine vet visits. (Remember: Most pet insurance plans don\u2019t cover routine care unless you pay extra.)<\/p>\n\n\n\n Below are the most common types of pet insurance claims for dogs and cats, according to 2021 data from NAPHIA, the latest available.<\/p>\n\n\n\n Some conditions on this list are relatively minor and inexpensive to treat, such as a urinary tract infection resolved with a course of antibiotics. But others could rack up significantly more expenses.<\/p>\n\n\n\n For example, one common skin mass in dogs is a mast cell tumor, a type of cancer. Surgery to remove one of these tumors could cost $500 to more than $1,000. For tumors that are aggressive or hard to remove surgically, your vet may also recommend radiation or chemotherapy, which can cost thousands of dollars.<\/p>\n\n\n\n If your pet faces only minor health conditions throughout his life, you may end up paying far more for pet insurance than you get back. But if something serious goes wrong, the insurance may be well worth it.<\/p>\n\n\n\n If you\u2019d rather not buy pet insurance, you can try one of the following ways to pay for your furry pal\u2019s care.<\/p>\n\n\n\n Instead of paying a monthly premium to a pet insurance company, you could contribute to a high-yield savings account for vet expenses.<\/p>\n\n\n\n The advantage of this strategy is that if your pet stays healthy, you\u2019ll still have the money to use for something else. The downside is that you might not have enough saved if your puppy has an expensive accident three months after you bring them home.<\/p>\n","protected":false},"excerpt":{"rendered":" You come home to find your dog vomiting and listless. After rushing them to the vet, you learn that they swallowed one of your socks and needs emergency surgery \u2014 to the tune of several thousand dollars. Can you afford to pay that bill? If not, pet insurance might be worth considering. Pet insurance helps …<\/p>\n![\"\"](\"https:\/\/thumbor.bigedition.com\/pembroke-welsh-corgi\/fE0-ZOm-BqXKmlAyH18wxwyuA94=\/800x0\/filters:quality(80)\/granite-web-prod\/08\/53\/0853bb67217f43cb934518176f57772a.jpeg\")
<\/figure>\n\n\n\n\n\n\n\nWhat pet insurance costs<\/h2>\n\n\n\n
![\"\"](\"https:\/\/www.forbes.com\/advisor\/wp-content\/uploads\/2022\/11\/puppy_with_hourglass.jpeg.jpg\")
<\/figure>\n\n\n\nDog’s age<\/th> Monthly rate<\/th><\/tr><\/thead> 3 months<\/td> $31.27.<\/td><\/tr> 2 years<\/td> $31.27.<\/td><\/tr> 4 years<\/td> $34.88.<\/td><\/tr> 6 years<\/td> $50.75.<\/td><\/tr> 8 years<\/td> $74.52.<\/td><\/tr> 10 years<\/td> $108.02.<\/td><\/tr> 12 years<\/td> $134.49.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n ![\"\"](\"https:\/\/lovimals.com\/wp-content\/uploads\/2023\/09\/Screenshot-2023-09-10-at-7.57.01\u202fPM-1024x545.png\")
<\/figure>\n\n\n\nWhat pet insurance pays for<\/h2>\n\n\n\n
Deductibles, limits and payouts<\/h3>\n\n\n\n
What\u2019s covered and what\u2019s not<\/h3>\n\n\n\n
The cost of veterinary care<\/h2>\n\n\n\n
Dogs<\/th> Cats<\/th><\/tr><\/thead> 1. Urinary tract infection.<\/td> 1. Urinary tract infection.<\/td><\/tr> 2. Otitis\/ear infection.<\/td> 2. Diabetes.<\/td><\/tr> 3. Gastroenteritis.<\/td> 3. Vomiting\/emesis.<\/td><\/tr> 4. Diarrhea.<\/td> 4. Kidney disease.<\/td><\/tr> 5. Dermatology\/skin conditions (allergies, irritation, infections, mass).<\/td> 5. Hyperthyroidism.<\/td><\/tr> 6. Arthritis.<\/td> 6. Gastroenteritis.<\/td><\/tr> 7. Allergies.<\/td> 7. Diarrhea.<\/td><\/tr> 8. Lameness.<\/td> 8. Upper respiratory infection.<\/td><\/tr> 9. Vomiting.<\/td> 9. Respiratory.<\/td><\/tr> 10. Seizure.<\/td> 10. Cancer\/growth\/oncology.<\/td><\/tr> 11. Ophthalmology\/eye conditions.<\/td> 11. Inflammatory bowel disease.<\/td><\/tr> Source: NAPHIA 2021 State of the Industry Report<\/em><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n Alternatives to pet insurance<\/h2>\n\n\n\n
Self-funding<\/h3>\n\n\n\n