Pet Insurance Buying Guide
Marketplace Equity Reporter
You can buy car insurance and never get into an accident, or home insurance and never have a fire. People who buy pet insurance, on the other hand, are perhaps more likely to use it because, depending on the plan, it can cover routine pet healthcare, not just injuries and illness. Even so, only a minority of pet owners choose to buy coverage. Of the estimated 88 million dogs and 60 million cats in the U.S. in 2024, the North American Pet Health Insurance Association says only about 6.5 million were insured.
For those interested in joining the ranks of those who insure their pets, Consumer Reports’ pet insurance ratings can help. We rated 14 pet insurance providers—American Kennel Club, ASPCA, Embrace, Fetch, Figo, Healthy Paws, Lemonade, Liberty Mutual Pet Insurance, MetLife Pet Insurance, Nationwide Pet Insurance, Pets Best, Pumpkin, Spot, and Trupanion—based on a nationally representative survey of 3,583 people who insured their pets, including 1,147 CR members. Our analysis drew from their recent claims experiences, price paid, coverage options, and other factors.
Here are the main things to know when shopping for a policy.
Cost Considerations and Coverage Options
Pet health insurance resembles the human version in some ways. For instance, the majority of pet plans have premiums, annual deductibles, and copays. But pet insurance policies vary more in what they cover or don’t, with not all pet insurers including the same suite of possible veterinary needs or health problems as part of their basic packages. This can make comparison shopping a bit challenging.
These are some types of coverage you can usually elect to include in your pet health insurance or that may come bundled:
- Accident coverage, the most common type of coverage among policyholders in our survey, typically includes injury care, covering surgery and hospitalization.
- Illness coverage includes treatment for routine, chronic, hereditary, or congenital illnesses that are not preexisting.
- Wellness care covers routine vet visits.
- Dental care coverage for oral health.
- Alternative therapy coverage includes acupuncture, hydrotherapy, and physical rehabilitation.
- Prescription medication coverage.
- Prescription food coverage.
- Coverage for diagnostic tests and X-rays.
When Should You Get Pet Insurance?
Simply put, it’s cheaper to insure healthy pets, and premiums are routinely less expensive for younger animals. Younger animals are also at an advantage because they tend not to have preexisting conditions.
A preexisting condition is any illness or injury that predates the start of an insurance policy. These can be incurable illnesses like cancer and diabetes (yes, cats and dogs can get diabetes) or curable problems like a broken bone. Insurers may ask to review your pet’s medical records before enrollment. Or they may impose waiting periods before activating coverage, from two days to 12 months, depending on the insurance carrier and whether you’re bringing your pet in because of an illness or accident, or for another reason.
The Cost of Premiums, Deductibles, and Copays Can Add Up
The median premium paid by CR members was $34.50 per month per pet. A 2023 analysis from Nerd Wallet found that, depending on the plan you choose, deductibles can range from nothing to $1,000 or more. Copays (the fixed amount of a vet bill you’re expected to pay out of pocket) are typically 20 percent.
Your pet’s breed may make them susceptible to health complications that will have an impact on the price of their insurance coverage or even their ability to be covered at all. Where you live, your pet’s age, and the cost of veterinary care in your area also contribute to the premium you can expect to pay.
You'll Probably Have to Pay Up Front for Treatment
Pet owners are usually responsible for paying providers directly at the time of service. This means you then have to file a claim for reimbursement from the insurance company. Less than half (44 percent) of policyholders said they received full reimbursement at their policy level, after the copay, for the most recent claims in the past 12 months. An additional 25 percent received partial reimbursement, but less than they had hoped.
So Is Pet Insurance Worth It?
Only you can decide whether pet insurance is worth it for you and your pet.
CR’s analysis of policyholders’ experiences suggests that saving money on vet care isn’t guaranteed if your pet is insured. In our survey, a third (34 percent) of policyholders said they saved more by having pet insurance than they spent on insurance and deductibles, while another 20 percent told us they broke even. That means 40 percent spent more than they saved. (The remaining 6 percent were unsure.)
But saving money may not be the only consideration. Having insurance can also buy peace of mind. Two-thirds of policyholders said they thought their pet insurance was worth the cost, including some who said they spent more than they saved. "This is the first dog that has had pet insurance. Hopefully, I never have to use it, but just knowing it’s there for emergencies or major health problems gives me IMMEASURABLE peace of mind," a respondent said. Another emphasized that while the $70 a month she spends on her dog’s insurance wasn’t cheap, it was worth it because of the "peace of mind knowing my dog is covered for just about anything."
If you’re not convinced that pet insurance is for you, read about other ways to save on health care costs for your pet.