Everything You Should Know About How Pet Insurance Works

The unconditional love you have for your pet makes it a cherished family member. Because of this, you want them to remain healthy and happy so that both of you can live a good life.  

However, when the animal does get sick or ends up in an unfortunate accident, you want to spare your furry friend the pain, mend them back to health but also protect yourself from the financial burdens that unexpected veterinary costs bring. 

As a responsible pet parent, it is wise to gather all the necessary information about pet insurance and consider investing in an insurance plan that will fit both your needs and your budget.

In this article, we share everything you need to know about pet insurance.

Basic Definition Of Pet Insurance

It is simple to understand how pet insurance works. Pet insurance is a reimbursement-based model meaning that when you take your four-legged friend to the vet, you pay the bill at the time of service and submit a reimbursement claim later.

It’s a policy with a monthly premium that you must pay your insurer. The policy includes the conditions and expenses, the reimbursement rate, your deductible, and the maximum payout.

Even though monthly premiums can cost you up to a few hundred dollars per year, the benefit is huge because it protects you if an illness or injury occurs that can cost you up to thousands of dollars in veterinary bills.

Top Reasons To Get Pet Insurance

Pet insurance has two different purposes. 

The first and most noble purpose is to protect your animal’s health and ensure that it can always receive the care it needs. The other reason is to protect your finances from huge unexpected expenses in case of an emergency medical treatment. 

A huge vet bill at the wrong time can have devastating and long-lasting effects on your finances, especially if you’re forced to take out a loan to be able to pay. Being unable to pay for the care that your animal needs is a sad feeling that no one wants to experience. It is strongly recommended that you protect your animal at a young age and always renew the insurance in time so that you don’t have to experience any of this.

What About The Costs?

The amount of money that goes into pet insurance primarily depends on whether you want the pet’s coverage level to be basic or comprehensive. The comprehensive option is costlier but it has higher coverage limits and includes treatments for different issues.

Usually, pet owners can choose pet insurance deductibles between $100 and $1,000 while the most usual options are deductibles of $250, or $500 but you’re free to increase or decrease it depending on the coverage you choose. Once you pay your deductible, the insurance company will start reimbursing for your pet’s required treatments.

Choose The Right Type Of Insurance 

When wanting to protect your pet, there are generally three types of pet insurance.

Accident-Only Insurance Plan. The accident-only insurance plan is the most basic level of insurance for your pet and emergency care for accidents. It does not cover illnesses or diseases but solely vet fees for accident-related injuries.

Accident-Illness Insurance Plan. This is one of the most common and popular plans available as it covers both unexpected accidents and illnesses.

Accident-Illness With A Wellness Insurance Plan. It comes as no surprise that this is one of the most expensive insurance plans since it’s the most comprehensive one, offering the ultimate coverage for your furry companion. It’s the perfect policy, covering everything from routine checkups, injuries, surgeries, and much more.

Vaccines, preventive care, and annual wellness exams are usually not covered by these plans, but you can always talk to your insurer to see if they offer any extras that you could add to the insurance plan that best suits your needs.

If you have difficulties making your decision, just think about the lifestyle you lead and consider the risks to your animal friend.  For example, if you’re a big city dweller and often out on the streets, there’s an increased risk of your pet being involved in an accident and you might opt for the accident pet insurance.

Final Thoughts

Understanding what pet insurance means, and choosing the right type of insurance coverage will provide you with a safety net whether your beloved pet gets hurt or sick. 

Gaining valuable insight into the possible costs and benefits will help you become a happier and more knowledgeable pet owner.