Is accident only or accident and illness pet insurance right for you?

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Published on September 23, 2024 | 5 min read

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Labrador Poodle mix dog with a broken leg. He wears a blue cast while the bone heals.

Every pet owner wants to ensure their furry family receives the best care possible. But when the unexpected happens, like a broken bone or chronic illness, coming up with money to cover an emergency isn’t always easy and can even impact treatment.

Pet insurance can help ease the financial strain in these scenarios, covering the cost of accidents and illnesses. It’s also similar to human medical insurance with premiums, deductibles and copays. Many pet insurance companies offer two types of plans: accident-only coverage and accident and illness coverage.

Each plan has unique coverage options and price points, with the average monthly premium hovering around $53.34 for dogs and $32.25 for cats. To help you choose the best option for your pet’s needs and budget, get to know what these policies typically involve.

What is accident-only pet insurance?

Accident-only pet insurance covers your pet exclusively for emergencies and accidents, like your dog suffering an injury at the dog park or your cat chewing the leaves of a poisonous plant. Each pet insurance company has its interpretation of “accident,” spelling out exactly what accidental injuries entail so you’re not surprised when the bill comes.

For example, ASPCA Pet Insurance considers the following incidents as accidents:

Bite wounds
Broken bones
Cuts and lacerations
Fractured teeth
Swallowed objects
Toxic ingestions

Some accident-only pet insurance plans cover diagnostic services and treatments related to accidents. In addition, these plans are generally less expensive because of their limited coverage.

According to ASPCA sample quotes pulled by Bankrate, accident-only pet insurance for a five-year-old medium mixed-breed male dog in Florida can cost between $12 to $53 a month depending on annual reimbursement limit, reimbursement percentage and annual deductible.

Pros of accident-only pet insurance

Cost-effective premiums: This coverage typically has lower monthly premiums because it applies to a narrower scope of services than comprehensive plans.
Straightforward coverage: These policies are simple to understand. They cover only accidents and avoid the complexities of defining and excluding illnesses.
Peace of mind for emergencies: Accident insurance provides financial reassurance in case of potentially catastrophic accidents that can result in high-cost treatments.
Protection for healthy pets: Accident-only plans are a great option if your pet is young and healthy, covering most unexpected veterinary expenses.

Cons of accident-only pet insurance

Coverage caps: Accident-only plans often have financial caps on the reimbursement amount per claim, which may not cover the entire treatment or therapy.
Limited scope of protection: Accident-only is not comprehensive. It does not cover congenital illnesses, chronic conditions, dental issues, diseases or cancer. Many of these conditions are common depending on your pet’s breed and age.
Potential coverage disputes: Even though companies provide a list of covered injuries or accidents, there could still be conflicts over what qualifies, leading to denied claims.
Potential for higher out-of-pocket costs: If your pet develops a life-threatening illness like cancer, chronic conditions like diabetes or age-related issues like arthritis, you are responsible for the full cost of treatment.

What is accident and illness pet insurance?

Accident and illness pet insurance is a much more comprehensive protection plan for your four-legged companion — but with a higher price tag. Coverage extends beyond accidents to include various chronic and sudden illnesses and emergencies.

For example, accident and illness pet insurance from Embrace includes:

Cancer treatment
Congenital conditions
Dental trauma (not to be confused with annual teeth cleanings)
Genetic conditions
Chronic conditions
Orthopedic conditions

While many accident and illness plans cover diagnostic and lab testing, hospitalization and surgery, some pet insurance companies will also cover alternative therapies, physical therapy, medications and more. Others may offer these add-on options for a monthly charge.

According to Embrace example quotes pulled by Bankrate, accident and illness pet insurance for a five-year-old medium mixed-breed male dog in Florida can cost as low as $17 to $59 a month, depending on the annual reimbursement limit, reimbursement percentage and annual deductible. With Embrace, you can also add exam fee reimbursement for $9 a month or prescription drugs for $10 a month.

Pros of accident and illness pet insurance

Access to more treatment options: Knowing they have some financial protection, pet owners can consider more extensive or advanced therapies that usually fall outside their budget.
Comprehensive coverage: It includes both accidents and a broad array of illnesses, ensuring your pet is protected from most unpredictable health events.
Coverage for chronic conditions: This type of policy typically insures chronic conditions that may arise following an accident or illness, provided they didn’t exist before the policy was taken out.
Financial relief: Though accident and illness plans cost more than accident-only options, they can save pet parents significant money on unexpected vet bills over time.

Cons of accident and illness pet insurance

Complex policy terms: With more illnesses and conditions covered, understanding the exclusions, limits and deductibles can be more complicated than with an accident-only policy.
Exclusions: Many accident and illness insurance plans don’t cover preventive care, certain elective procedures and pre-existing conditions. Accident and illness insurance plans may be comprehensive, but they don’t cover preventive care. For that, you’d want to consider a pet wellness plan.
Higher cost: Because these plans cover a multitude of medical conditions, they are more expensive than accident-only insurance, especially when you take into account premiums, deductibles, copays and more.
Reimbursement policies: In addition to higher premiums, be prepared to pay up front. Some companies require you to pay the initial bill and then submit a reimbursement claim.

What are the exclusions, restrictions and discounts for pet insurance?

Whether you choose accident-only or accident and illness pet insurance, no pet insurance companies cover pre-existing conditions. For many companies, this is defined as an injury, illness or irregularity noted by yourself or your vet before the waiting period is over. There can be different waiting periods depending on your state and even certain conditions.

Both accident-only and accident and illness pet insurance may charge more depending on your dog’s breed. For example, a five-year-old French bulldog may cost as much as $102 a month, while a five-year-old poodle can cost as low as $50 with Lemonade pet insurance plans.

Age is another consideration. While it does cost more to insure an older dog or cat, many companies have age restrictions that top out at nine years old for new accident and illness pet insurance policies.

As with car insurance, the majority of pet insurance companies offer multi-pet discounts. Sometimes, these can be as high as 10 percent off your monthly premium, providing savings that may make a higher level of coverage more attainable.

When should you choose accident-only coverage?

Remember, accident-only pet insurance only covers accidents or accidental injuries as described by the insurance company. Opting for accident-only coverage may be a better option for you if:

You have outdoor or active pets. If your furbabies spend a lot of time outside, are very active or tend to play rough, accident-only insurance is a cost-effective option for added peace of mind.
You have senior pets. Pets older than nine often don’t qualify for accident and illness insurance, but many pet parents can still get accident-only insurance to help provide some protection.
Your pet is young and healthy. Generally, young pets are less prone to illness, making an accident-only plan a reasonable risk at this stage.
You want to cover major emergencies. This plan is appropriate if you’re primarily concerned about unexpected (and high) vet bills for emergency medical intervention after accidents.
You’re on a budget. If you have limited financial resources but still want some protection, the lower premiums of accident-only coverage can be an excellent option.

When should you choose accident and illness coverage?

Accident and illness insurance gives pet parents a little more breathing room when it comes to unexpected vet bills, covering many conditions and diseases. This comprehensive coverage is likely the better choice if:

You have financial flexibility. If you can afford higher premiums, the broad protection can save you thousands of dollars when your pet is diagnosed with serious, life-threatening health issues or chronic conditions.
Your pet is aging. As pets age, their risk of illness rises. Comprehensive coverage could be crucial for pet parents managing ongoing treatments and therapies.
Your pet is at risk for breed-related illnesses. Some breeds are genetically predisposed to certain illnesses. Accident-and-illness policy provides tailored protection.
You want comprehensive coverage. While it may cost more, there’s peace of mind in knowing that all types of medical issues, conditions, diseases and accidents are covered through customized options.
You want more treatment options. You can consider more extensive or advanced treatment options that you would not otherwise be able to afford.

The bottom line

In 2023, the American Pet Products Association found that pet owners spent $38.3 billion on vet care and product sales, a number that is expected to grow year over year.

When every penny counts, coming up with money to cover a pet emergency or illness can break your budget. Pet insurance offers pet parents a safety net. But choosing between accident-only and accident and illness pet insurance plans comes down to two main things: your pet’s needs and your financial situation.

It’s best to start by getting multiple quotes and pay attention to the fine print. This way, you’ll know exactly what is and is not covered by your pet insurance. Ultimately, you know your pet best. Carefully considering the advantages and disadvantages of accident-only and accident and illness pet insurance is the best way to ensure your pet is covered in case the unthinkable happens.