Understanding Pet Insurance Pricing: What You Need To Know In 2022

With more than 91 million American households owning pets, protecting your furry friend from unexpected veterinary expenses has become increasingly important. One of the most effective ways to manage potentially devastating vet bills is through pet insurance. But understanding pet insurance cost requires examining multiple pricing variables that insurers use to calculate premiums.

Breaking Down Pet Insurance Cost By Animal Type

Monthly pet insurance cost varies considerably depending on which animal you’re covering. Dog owners typically pay between $20 and $44 monthly, while cat owners can expect $12 to $46 monthly. When averaged across the industry for $5,000 in annual coverage, dogs average $35 per month and cats average $28 per month in 2022.

The good news? You have flexibility. Adjusting your coverage levels allows you to find a pet insurance plan that suits your budget. However, remember that premiums typically increase annually as your pet ages.

What Drives Your Pet Insurance Cost?

Multiple factors influence how much you’ll pay for pet insurance. Understanding these can help you make smarter decisions when comparing quotes from different providers.

The Type of Coverage Matters Most

Your choice of coverage type has perhaps the largest impact on your pet insurance cost. Several options exist:

• Comprehensive plans bundle accident, illness, and routine care coverage into one policy, offering maximum protection but at premium prices
• Accident and illness policies cover unexpected events like injuries, poisonings, and common conditions, including diagnostic work, surgeries, and medications
• Accident-only plans restrict coverage to specific incidents such as fractures, providing the most affordable option for budget-conscious owners
• Routine wellness add-ons cover preventive care like vaccinations, parasite prevention, and wellness exams

Deductibles Shape Your Out-of-Pocket Expense

A deductible represents what you pay annually before coverage begins. Pet insurance deductibles typically range from $0 to $1,000. The relationship is straightforward: higher deductibles mean lower monthly premiums, but greater immediate costs when claims arise.

Reimbursement Levels Affect Both Premium And Payout

Pet insurance operates on a reimbursement model—you pay the veterinarian upfront, then submit for reimbursement. After meeting your deductible, insurers typically reimburse at 70%, 80%, or 90% levels. Higher reimbursement percentages command higher premiums.

For example, with a $500 deductible and 80% reimbursement: a $1,500 procedure means you pay $1,500 upfront, subtract your $500 deductible, then receive 80% of the remaining $1,000 ($800 back).

Breed Predisposition Influences Pricing

Your pet’s breed significantly affects pet insurance cost because certain breeds carry genetic predispositions to specific conditions. Larger dog breeds face elevated risk for hip dysplasia and heart disease, resulting in more frequent vet visits and higher claims. Analysis of insurance filings reveals substantial breed-based pricing variation for dogs, but minimal variation for cats. This explains why cats are generally cheaper to insure than dogs, and exotic pets (birds, rabbits, reptiles, ferrets) cost even less.

Age Is A Critical Pricing Factor

Age dramatically affects pet insurance cost. Younger pets enjoy the lowest rates, with optimal pricing typically between the first birthday and around age six. By age nine, the cost multiplier can double or more due to increased illness and injury risk. This age-related cost escalation is why securing coverage early provides better long-term value.

Geographic Location Impacts Your Premiums

Your location and regional veterinary costs directly affect pet insurance pricing. Urban pet owners typically face higher premiums than rural counterparts because metropolitan areas command higher average veterinary fees.

Coverage Gaps: What Pet Insurance Doesn’t Include

Despite its value, pet insurance comes with important exclusions. Standard policies typically don’t cover:

• Pre-existing conditions
• Cosmetic or grooming services
• Experimental or investigational treatments
• Training programs
• Supplements, special diets, or nutritional products

Reading your specific policy closely is essential, as additional exclusions may apply based on your plan type.

Maximizing Value: Discounts And Practical Considerations

Finding Discounts On Pet Insurance Cost

Similar to auto or home insurance, pet insurance companies offer various discounts. Common options include annual payment discounts, multi-pet household discounts, bundled policy discounts, military service discounts, and employer-sponsored benefits programs.

Does Pet Insurance Actually Save Money?

Whether pet insurance cost proves worthwhile depends on your specific situation. Reimbursement policies do offset covered medical expenses, but your financial outcome depends on comparing premiums paid against claims submitted. Your deductible level significantly impacts this calculation.

Ultimately, pet insurance provides peace of mind by removing the impossible choice between financial hardship and your pet’s health. With nearly half of pet owners unable to cover surprise veterinary bills, pet insurance cost becomes an investment in your pet’s wellbeing rather than merely an expense.