Several studies have proven the health- and mood-boosting benefits of keeping pets – so it isn’t surprising that many people have gravitated towards friendly canines and felines to cope with the uncertainties brought by the pandemic.
Research conducted by the Insurance Research Institute (IRC) at the height of the COVID-19 outbreak in 2020 has found that nearly one in three Americans have adopted a pet to keep them company during one of the most stressful times in recent history.
The situation has contributed to a booming pet health insurance sector, which posted gross written premiums of almost $2 billion during that year, up 27.5% from 2019, according to figures from the North American Pet Health Insurance Association (NAPHIA). The association added that the total was equivalent to 3.1 million insured pets, with the number expected to rise in the next few years.
Read more: Pet insurance market set to double by 2022
Pet insurance plans are designed to protect pet owners from the financial impact of unexpected veterinary expenses. Most policies follow a reimbursement-based model, allowing policyholders to consult or get treatment from a specialist of their choosing, but there are also a few providers that offer the option to pay the veterinarian directly.
Policies vary between insurers but each outline which conditions and expenses are covered, reimbursement rate, deductible, and maximum payout or annual limit. Each plan also has a waiting period before coverage kicks in. The time varies depending on the insurance company, but most require a waiting period of 14 days.
According to pet insurance specialist Embrace, while many people compare this type of coverage to human health insurance, the company notes how it is “actually more like car insurance.”
“Just like your car insurance doesn’t cover routine maintenance or any accidents you got into before purchasing the policy, pet insurance plans typically don’t cover routine care costs and pre-existing conditions,” Embrace wrote on its website. “Pet health insurance provides peace of mind that you can afford to get your pet the best care in the event of a costly accident or illness.”
Pet insurance provides three types of coverage. These are:
The most common type of coverage, accident and illness policies cover injuries caused by accidents – including broken bones, torn ligaments, bite wounds, eye trauma, and poisoning – and sickness – including skin infections, cancer, arthritis, allergies, ear infections, diarrhea, and internal parasites.
Experts advise pet owners to get this type of cover while their pets are young as many insurance providers limit illness coverage as animals age. Doing so can also help policyholders save on premiums and reduce the impact of pre-existing condition exemptions.
Some insurers offer accident-only plans, which essentially covers anything associated with sudden physical injury. This type of policy usually costs less than accident and illness plans, and suits pets with pre-existing conditions.
This optional coverage pays out for wellness expenses, including annual physical exams, spay or neuter procedures, routine blood panels, heartworm testing and treatment, fecal testing, urinalyses, routine vaccinations, teeth cleanings, and flea and tick treatments.
Several factors impact the cost of pet insurance policies, including the pet’s breed, age, gender, pre-existing illnesses, and geographical location. According to NAPHIA, the average annual premiums for dog insurance with accident and illness coverage were $594 in 2020. Cat insurance premiums are priced about 40% lower. The association added during that year, 83% of in-force gross written premiums were for dog insurance.
Canine Journal, meanwhile, pegged the cost of monthly premiums between $10 and $100, with the majority of policyholders paying about $30 to $50 per month.
According to experts, the biggest benefit of taking out pet insurance is peace of mind. It gives pet owners the assurance that in an event of an expensive illness or accident, they can afford to give their pets the best care possible.
“You can't predict when your dog or cat will get sick or injured, but you know it could happen at any time,” Embrace wrote. “Pet insurance protects your finances by covering your pet's unexpected vet bills.”
Canine Journal added that the worst scenario for owners “is learning your dog has cancer but turning down treatment because you can’t afford the bills.”
“No one wants to face this decision and signing up for pet insurance can cover much of the cost,” the review site noted. “Pet insurance allows you to make the best choices when an emergency arises instead of the least expensive ones.”
Meanwhile, most veterinarians Pawlicy Advisor talked to said that they have difficult conversations with pet owners about the cost of care anywhere from five to 10 times per day.
“As healthcare costs rise across the board, pet healthcare is no exception,” according to the pet insurance marketplace. “The right coverage plan can buy you priceless peace of mind and empower you to do the right thing for your dog or cat.”
To find out which pet insurance companies in the US provide the best coverage, consumer websites Forbes Advisor, Money, and US News analyzed the policies of different pet insurers, along with consumer reviews and feedback from industry organizations. These are the ones that came up on top. The list is arranged alphabetically. All details are up to date as of March 2022.
|
Insurer |
Policy name |
Coverage features |
|---|---|---|
|
APSCA |
Complete Coverage |
|
|
Embrace |
Simply Great Pet Insurance |
|
|
Fetch by The Dodo |
Pet Insurance |
|
|
Figo |
Pet Insurance |
|
|
Healthy Paws |
Pet Insurance |
|
|
Lemonade |
Pet Health Insurance |
|
|
ManyPets |
Pet Insurance |
|
|
Pet Insurance |
|
|
|
PetFirst |
Pet Insurance |
|
|
Pets Best |
Pet Insurance for Dogs and Cats |
|
|
Prudent Pet |
Pet Insurance Essential Plan |
|
|
Pumpkin |
Pet Insurance |
|
|
Spot |
Pet Insurance |
|
|
Trupanion |
Pet Health Insurance |
|
|
TrustedPals |
Dog and Cat Insurance |
|
