How to decide if you should get pet insurance for your dog

Whether you have a household with just one four-legged friend or a whole horde of pets, your pets likely mean the world to you. With the rising cost of pet healthcare, many dog parents are investigating the value of pet insurance. Is it worth the cost of pet insurance for your dog? These are the most common reasons pet insurance is important.

How does dog insurance work?

Pet insurance for dogs is like human health insurance in that it helps to cover the costs of vet visits, treatments and medication.

You start by selecting a pet insurance policy that aligns with your dog’s healthcare needs and your budget. You then pay a monthly or annual premium to maintain your policy. When your dog needs veterinary care, you take it to your clinic of choice.

Most pet insurance providers do not work directly with veterinary clinics. You will pay up front for your pooch’s vet visit and then submit the invoice to your insurance company for reimbursement.

What does pet insurance for dogs cover?

The extent of the coverage you receive for your dog will depend on the plan you select. Dog insurance typically covers these expenses:

• Accident coverage: Injuries from accidents, such as broken bones, cuts or swallowing foreign objects, as well as emergency care and surgery related to these incidents.
• Alternative care: Some plans include acupuncture, chiropractic care or physical therapy to aid recovery.
• Diagnostics: Tests and procedures to help diagnose illnesses or injuries, such as blood tests and X-rays.
• Hereditary and congenital conditions: If not pre-existing, breed-specific issues such as hip dysplasia, heart disease or intervertebral disc disease.
• Illness coverage: Diagnosis and treatment of illnesses, such as infections, allergies or cancer. Many comprehensive plans also cover chronic conditions like arthritis or diabetes.
• Prescription medications: Coverage for drugs to treat illnesses or manage chronic conditions.
• Surgery and hospitalization: Costs of surgeries, hospital stays and follow-up care.

The reimbursement process

Unless you sign up with an insurance company that offers direct vet pay, you typically pay your vet at check out and then apply to your provider for reimbursement. The process normally works as follows:

1. After you visit the vet, file a claim with your insurer. Claims can usually be submitted online, through a mobile app or via email or mail. You’ll need to include the paid invoice or receipt from the vet and your dog’s medical records (if requested).
2. The insurance company reviews your claim to ensure the treatment is covered under your policy. The process typically takes a few days to a couple of weeks, depending on the provider.
3. Once approved, your insurer calculates your reimbursement based on your deductibles, reimbursement rate and coverage limits.
4. You will then receive your refund via direct deposit or a check in the mail.

What does dog insurance cost?

The cost of pet insurance for dogs depends on factors like your dog’s age, breed and location, and the type of plan you select.

According to the National Association of Pet Health Insurance (NAPHIA), the average premiums for dog insurance in 2023 were:

• $17.01 per month for accident-only policies.
• $56.30 per month for accident and illness policies.

Why consider pet insurance for your dog?

Unforeseen accidents and chronic illnesses can result in hefty vet bills. According to a Pawlicy Advisor study, more than a quarter of the study participants had to refuse vet care due to financial limitations. Paying a monthly premium may be more manageable than facing a large, unexpected vet bill.

1. Pet care is costly

The cost of veterinary care is not immune to inflation. In fact, pet care expenses have risen by 12 percent and veterinary costs by 7 percent from November 2023 to November 2024, considerably more than the 2.7 percent inflation rate over that period. Pet insurance can help pet owners carry the costs of these expenses.

2. Access to advanced veterinary care

Pet insurance can make cutting-edge treatments, such as chemotherapy, surgery or specialized diagnostic tests, more accessible, giving your dog the best chance of recovery.

3. Pet insurance can promote more regular vet care

The American Veterinary Medical Association (AVMA) recommends regular wellness checkups and preventive vet care as a key to a long and healthy life for your pet.

With coverage for wellness visits, vaccinations and diagnostic tests available as part of comprehensive or add-on plans, pet parents are more likely to prioritize their dog’s health. Regular vet care helps catch potential health issues early, preventing them from developing into more serious and costly conditions.

4. Coverage for emergencies

By definition, emergencies are unexpected and the costs associated with treating your pet in such a situation are usually equally terrifying. Investing in your dog’s well-being with an accident-only policy can ensure that you don’t need to think twice about signing off for emergency care when your pooch needs it.

5. Assistance with chronic conditions and long-term care

Conditions like arthritis, diabetes or allergies may require ongoing treatment. Many pet insurance plans provide coverage for chronic conditions, reducing the burden of long-term care expenses.

How do you compare dog insurance plans?

Choosing the right pet insurance plan for your pooch means comparing policies from different insurance providers.

Having a solid understanding of the following terms will help you make head and tail of what’s offered:

• Benefit schedule: A predetermined list that specifies the maximum amount the insurer will pay for specific treatments or conditions, regardless of the actual vet bill.
• Claim expiration: The deadline for submitting claims after a vet visit.
• Coverage limit: The maximum amount the insurance provider pays per year, per condition or over the dog’s lifetime.
• Deductibles: The amount you pay out of pocket before coverage begins. Deductibles can be per year or per condition.
• Exclusions: Illnesses or treatments not covered, such as pre-existing conditions or elective procedures.
• Monthly premium: To keep your policy active, you must pay a monthly (or annual) premium.
• Pre-existing conditions: Medical issues your pet has before coverage starts, which insurers typically do not cover. Some providers will cover certain curable conditions once your pet is symptom- and treatment-free for a pre-determined period.
• Reimbursement rate: The percentage of eligible expenses the insurer reimburses (typically 70 to 90 percent).
• Waiting periods: The time you must wait after enrolling before coverage begins.

How do you choose the right pet insurance for your dog?

Choosing the right pet insurance for your dog requires careful consideration of your dog’s needs, budget and policy details. Here’s a step-by-step guide to help you make an informed decision.

1. Assess your dog’s health needs

Every dog is unique. Their age, breed, health history and activity levels will affect the kind of healthcare they need and, in turn, the insurance that is most suitable. Read through the following points to help you evaluate:

• Age: As dogs age, their risk of becoming ill or developing a pre-existing condition increases, driving up the cost of insurance.
• Breed: Some dog breeds are more likely to develop chronic health issues such as diabetes (Australian terriers and Samoyeds) and hip dysplasia (Labrador Retrievers and German Shepherds).
• Lifestyle: Active dogs are more likely to sustain injuries and require comprehensive vet care.

2. Compare coverage options

Coverage is usually available in a few different forms:

• Accident-only vs. comprehensive plans: Decide if you need basic coverage for injuries or a more comprehensive plan that includes illnesses and hereditary conditions.
• Wellness add-ons: For an additional fee, some insurance providers offer preventive care add-ons for vaccinations, dental cleanings and annual checkups.

3. Evaluate costs

Compare monthly premiums and ensure the cost fits your budget. Factor in deductibles, co-pays and coverage limits to calculate overall affordability.

Additionally, be sure you understand the key policy components that will affect your out-of-pocket costs.

• Deductibles: Choose between annual or per-condition deductibles. Lower deductibles mean higher premiums, and vice versa.
• Reimbursement rates: A lower reimbursement rate will translate to a more affordable premium, while a higher reimbursement rate will mean that you receive more money back on your vet bills but also pay a higher monthly premium.
• Coverage limits: Ensure the annual, per-condition or lifetime coverage limits align with your potential vet care costs. Plans with higher limits will usually have higher premiums.

4. Research waiting periods

Awareness of waiting periods can help you avoid unexpected gaps in coverage. Common waiting periods include:

• Accidents: Typically one to three days.
• Illnesses: Often 14 days or more.
• Specific conditions: Conditions like cruciate ligament injuries or hip dysplasia may have extended waiting periods (six to 12 months).

5. Check for exclusions

To ensure you are not caught off guard when the time comes to file a claim, review what your potential insurer does not cover, especially regarding the following:

• Elective procedures such as tail docking, ear cropping, declawing
• Pre-existing conditions (illnesses or injuries diagnosed before the policy started)
• Specific breed-related conditions

6. Evaluate additional benefits

Some insurance providers offer extra benefits, such as:

• Alternative therapies such as physiotherapy and acupuncture
• Coverage for behavioral therapy
• Direct vet pay
• Reimbursement for prescription diets

If these features suit your dog’s healthcare needs, they may make higher premiums worthwhile.

7. Research insurers

Bankrate’s list of the best pet insurance companies can help you identify reputable providers whose offerings align with your needs. Additionally, be sure to check reviews and customer satisfaction ratings. Search for information on the claims process and typical reimbursement timelines. Overall, look for a provider with a strong reputation for customer service quality, transparency and reliability.

The bottom line

From pocket-sized poodles to massive Malamutes, all canines are at risk of succumbing to injuries or illness that could have you seeing far too many zeroes when faced with your next vet bill. Pet insurance can help you put a financial safety net in place so you don’t have to decide between incurring debt or saying no to critical vet care. Consider your dog’s potential healthcare needs and your ability to afford those costs out of pocket to decide if dog insurance is the right choice for you.