Is pet insurance worth the money? Here's what to know before insuring your furry friend
Owning a pet is getting more expensive, and sudden medical bills can only make matters worse. That has some pet owners wondering if insuring their furry friend is the right move for them.
While visiting a dog park near Lake of the Isles in Minneapolis, only one of the five people WCCO talked with admitted to having insurance for their pets.
Adam Rafowitz said he used to pay for pet insurance but canceled it "after getting bills and seeing how little of the preventative care it covered."
It's estimated there are 163 million dogs and cats in U.S. households, but only 6.4 million are insured. That's less than 4%.
"I don't think it's worth it," said dog owner Richard Gwynne.
The pet insurance industry is relatively new, and experts say that's partly why there's a low number of policies, but it is growing.
"I think it definitely has its place, and I think it can be really helpful for a lot of my clients. There's a lot of different kinds of pet insurance," Amanda Mickelson, veterinarian and medical director at All Paws Animal Hospital in Edina, said.
There are three main categories
- Accident only: covers unexpected emergencies like broken bones.
- Accident and illness: covers accidents while adding sickness and disease.
- Wellness: covers routine work like vaccinations and yearly exams.
Depending on which you buy, the average monthly premium for a dog is about $62, while a cat is about $32.
"If I get it discounted through work, I think it's more beneficial than if you're paying $70-100 per month, I'd say," said dog owner Cali Smith.
Mickelson said the value will depend person-to-person, especially on what they can afford. She said her clients who have accident and illness coverage were often glad they had it, even if they didn't need to use it.
As for wellness coverage, Mickelson feels pet owners could potentially skip it.
"If you're a good budgeter and you can put aside a certain amount of money every month, there's where I say maybe you can do that more on your own," she said.
Pet insurance will usually cover 70-90% of vet bills, which is especially helpful for surgeries and treatments that total in the thousands. Owners still have to pay the vet bill up front. Reimbursement from insurance comes later.
If that seems valuable to you, experts say start the policy early in the pet's life, ideally before any medical issues happen.
"You just have to be very careful when it comes to preexisting conditions. Unfortunately, pet insurance isn't like human insurance and the coverage for preexisting conditions can be zero," said Mickelson.
She went on to say that pet owners should talk with their vet if they have questions about insurance. They can offer advice based on your pet's breed, age and your financial situation.
Some publications have questioned the value of paying for pet insurance, arguing the premiums will cost most pet owners more in the long run since expensive accidents that lead to high vet bills are rare.
