What are the three types of pet insurance?
Key takeaways
- Pet insurance comes in three main types: accident-only, accident and illness, and wellness plans.
- Accident-only plans offer affordable emergency coverage, while accident and illness plans cover a broader range of issues.
- Wellness plans cover routine and preventive care, helping to manage predictable costs.
- Review each policy’s details, such as deductibles and reimbursement rates, to find the best fit for your budget and needs.
Navigating insurance of any kind can seem daunting, but you don’t have to be an expert to understand the three main types of insurance policies available to you. There are accident-only plans for unexpected injuries, comprehensive accident and illness plans for broader coverage and wellness plans for routine care like vaccinations and dental check-ups.
We’ll break down each of these options — plus a few add-ons — to help you find the best coverage for your pet’s needs and your budget.
The three main types of pet insurance
Each of the three primary types of pet insurance policies is tailored to cover a specific set of conditions. The coverage one type of policy offers may vary from one pet insurer to the next, so pay close attention to the details when shopping for a pet insurance policy.
Accident-only plans
As the name suggests, these policies only cover (eligible) injuries or medical conditions that are accidental. For example, an accident-only policy won’t cover elective surgery to remove a tumor, but it should cover vet bills for things like broken bones or lacerations.
An accident-only plan is a good option for healthy pets, as well as puppies and kittens. For example, if your goofball puppy swallows a foreign object or something toxic, your insurer will likely foot the resulting vet bill. This is also often the only option available to senior dogs and cats.
If you’re on a budget, an accident-only plan may be a good option for you and your pets. You’re not paying extra for broader coverage, but you are ensuring you have a financial safety net should Fido or Mittens need emergency care. Here’s a look at the sort of conditions these pet insurance policies do and don’t cover.
Accident and illness plans
An accident and illness plan offers the most comprehensive pet insurance, covering both injuries and illnesses. This type of plan is popular with pet owners looking for extensive coverage because it often covers chronic conditions and hereditary issues on top of accidents and illnesses.
Wellness plans
The best pet insurance companies offer wellness or preventive care plans that fill in gaps in your policy’s coverage. These add-ons cover routine veterinary care and “maintenance” to help your pets stay healthy and catch health issues early.
Unlike standard pet insurance, wellness plans typically provide a fixed reimbursement amount for each preventive service. For instance, you might get up to $60 for vaccinations or $100 for dental cleanings annually, depending on the provider.
Add-ons and other types of pet insurance
These plans can offer limited or more comprehensive wellness and preventive care coverage. If the coverage (on top of your base plan) is still too limited for your liking, you may have optional riders to add to your policies. Here are a few examples of pet insurance riders you could opt into:
- Alternative therapies
- Behavioral therapy
- Cremation or burial
- Dental illness treatment
- Dewclaw removal
- Obedience training
- Prescription diets
- Routine care
Additional pet-related insurance policy options
Some pet insurance companies offer extra options to enhance your pet’s policy, including dental care, liability insurance and even pet life insurance.
- Auto insurance with pet injury coverage: Auto insurance policies with pet injury coverage help cover veterinary costs if your pet sustains injuries in a car accident. This provides extra protection while traveling with your furry friend.
- Dog liability insurance: Dog liability insurance specifically covers damages and injuries caused by your dog. This type of insurance is particularly important for owners of breeds that are considered high-risk.
- Homeowners or renters pet coverage: Some homeowners or renters insurance policies include pet liability coverage. While these policies don’t reimburse vet visits, they can help cover costs if your pet causes property damage or injures someone.
- Life insurance for pets: While less common, pet life insurance can provide financial support in the event of a pet’s death. You can use it for cremation or burial expenses or if you lose a working or income-earning animal.
How pet insurance works
The goal of pet insurance is pretty simple: It’s there to help you manage those unexpected (and sometimes overwhelming) veterinary bills. Just like human health insurance, pet policies include a few key components:
- Copayments: Copays are set amounts you pay for specific services each time your pet receives care. Unlike coinsurance (where you cover a percentage of the bill), copays are fixed and predetermined in your policy. Think of a copayment as an “access” fee that you pay to get your reimbursement.
- Deductibles: This is the amount you need to pay out of pocket before your coverage kicks in. The higher the deductible, the lower your monthly premium, it’s all about balancing what works for your budget.
- Premiums: Your premium is the monthly or annual cost of keeping the policy active. It varies based on factors like your pet’s age, breed, location and the coverage you choose.
- Reimbursement rate: This rate is the percentage of the vet bill that your insurance will cover after you’ve met your deductible. Most insurers let you choose between 70, 80 or 90 percent reimbursement. Think of it as how much “backup” your insurance provides when a bill arrives.
How to choose the right type of pet insurance
Choosing the right pet insurance policy for your furry friend involves considering various factors to ensure the policy meets your pet’s health needs and fits within your budget.
1. Assess your pet’s needs
- Age: Puppies and kittens often need different coverage than older pets, so think about what’s most likely to be useful right now.
- Breed: Some breeds are prone to specific hereditary conditions. Knowing this can help you focus on coverage that really counts.
- Health history: If your pet has pre-existing conditions, keep an eye out for policies that may have exclusions around them.
2. Determine your budget
- Deductibles: Higher deductibles mean lower monthly premiums but require a bit more out-of-pocket spending if something happens.
- Premiums: Decide how much you’re comfortable paying monthly or yearly to keep the policy active without straining your budget.
- Reimbursement rates: Choosing a higher reimbursement rate means the insurer covers more of each vet bill, though it can raise premiums too.
3. Compare coverage options
- Accident-only plans: Ideal if you’re mainly looking for an affordable safety net in case of emergencies.
- Accident and illness plans: A good fit if your pet needs more frequent vet visits and you want comprehensive care.
- Wellness plans: Great if you’re after more predictable costs for routine, preventive care.
4. Evaluate policy details
- Coverage limits: Make sure the maximum payout will cover high-cost treatments if they’re ever needed.
- Exclusions: Take note of any exclusions, especially for pre-existing conditions, cosmetic treatments or breed-specific limitations.
- Waiting periods: Understand how long you’ll need to wait before certain types of coverage begin.
5. Research insurance providers
- Claims process: Choose a provider with a straightforward claims process and a reputation for timely reimbursements.
- Network restrictions: Most plans let you visit any licensed vet, but double-check for any restrictions. Even cheap pet insurance companies do this, but it’s worth making sure that’s the case with the insurer you’re looking at.
- Reputation: Read up on reviews from other pet owners to get a sense of each provider’s strengths and weaknesses.
6. Ask the right questions
Here are a few key questions to help guide your decision:
- Are hereditary and congenital conditions covered?
- What are the deductible and reimbursement rate options?
- Can you add preventive or dental care to the policy?
- What are the waiting periods for accident and illness coverage?
7. Ask around for recommendations
- Pet owners: Reach out to friends, family, or even social media groups for their take on different insurance providers.
- Veterinarian: Your vet can offer insights based on your pet’s health profile and help you identify plans that may be a good fit.
The bottom line
Choosing the right pet insurance policy can give pet owners the peace of mind and financial support for their pet’s health needs. The three main types — accident-only, comprehensive accident and illness, and wellness plans — each offer unique coverage levels. Accident-only plans are budget-friendly options for emergency coverage, while accident and illness plans cover a wider range of medical issues, including chronic conditions. Wellness plans, available as add-ons, help cover preventive care for a more predictable expense pattern.
When deciding, consider your pet’s age, health history and your budget to find the right fit. By comparing policy details and understanding each plan type, you can make an informed choice that meets your pet’s needs and keeps costs manageable.
Frequently asked questions
You may also like
Cheapest car insurance for seniors in 2024
Dog breeds that affect your insurance coverage
