How Does Pet Insurance Work?

What Is Pet Insurance?

When your pet is hurt or becomes ill out of the blue, it's scary, and when you see the vet bill, it may make things more scarier. Pet insurance can help in this situation by partially or fully covering the expense of your pet's treatment.

How Does Pet Insurance Work?

Similar to human health insurance, pet insurance works by charging a monthly premium in exchange for coverage of medical expenses, prescriptions, and, in some cases, wellness and preventative treatment.

How Does Pet Insurance Work?

Most pet insurance policies operate on a reimbursement model. In other words, you pay your veterinarian, and your pet insurer pays you back.

Types Of Policies Available And What They Cover

Generally, providers offer three types of pet insurance to select from:

Accident-only coverage

This plan only pays veterinary expenses for treating accidents-related injuries, such as fractured bones or accidental poisoning. 

Comprehensive pet insurance

–In addition to covering injuries from accidents, these plans usually cover treatments for allergies, cancer, diabetes, hereditary conditions and other illnesses and diseases.

Preventative care plans

Wellness or preventative care packages are often available from pet insurers as extras or standalone plans.

How Much Does Pet Insurance Cost?

Pet insurance is typically inexpensive. It's vital to understand that there is a huge range in cost depending on a few critical parameters. The average monthly premium for a cat is $29 and for a dog is $47.

How filing a claim and reimbursement works

Pet insurance works on a reimbursement model, which means you won't be able to factor in your insurance the same day your pet receives care. 

How filing a claim and reimbursement works

Instead, you'll pay your coverage up front and file a claim by submitting your veterinary bill and pet health records to your insurer.

How filing a claim and reimbursement works

Typically, you will get reimbursed for a portion of the amount at a later time. Depending on the choice you select when purchasing an insurance, you will normally receive a refund of 70% to 90%, less your deductible.