What is the typical monthly cost of pet insurance?
We found that, on average, pet insurance costs $66 a month for dogs and $32 a month for cats. However, pet insurance premiums typically range from $15 to $90 a month.
| Accident and Illness | $250 Wellness Rewards | |
|---|---|---|
| Average monthly cost | $56* | $19 |
| Summary | Base accident and illness plan | Wellness add-on with $250 in annual benefits |
Most pet insurance plans reimburse only 70% to 90% of covered veterinary fees after the deductible, so you would have to spend more than $10,000 on your pet's care in a given year to reach the limit.
Premiums may vary significantly based on your pet's age and breed, the cost of veterinary care where you live and the insurance policy you choose. Be aware that rates tend to increase as your pet gets older and more prone to health issues.
Insurance underwriters determine premiums by analyzing financial risks, so your plan cost will vary based on where you live, your pet's health, and historical or breed-related data that can indicate future risks.
ManyPets is the most affordable pet insurance with an average monthly cost of $23, and the cheapest option for cats at $16. Lemonade's average monthly cost is $23, and it is the cheapest option for dogs at $30 per month.
FAQs on Pet Insurance Costs
On average, Embrace offers affordable monthly premiums, typically ranging from approximately $8 to $38 for most cats and $18 to $72 for most dogs.
Pet insurance plans may cover eye surgeries if they're deemed medically necessary and not caused by a pre-existing condition. Hip surgery: Some dog breeds are prone to hip dysplasia, which may require total hip replacement surgery.
A pet insurance annual limit is the maximum dollar amount your pet insurance plan will reimburse over a year. Some policies set annual limits on specific health conditions as well. If you hit your annual limit, you'll have to pay your remaining vet expenses out of pocket.
It's true that you can generally expect your pet's insurance coverage cost to increase each year, along with their ever-increasing age. However, this doesn't mean that there aren't things you could—and sometimes should—consider changing about that coverage as time goes on.
Is pet insurance tax deductible?
Pet insurance may be tax deductible. For example, pet insurance can be tax deductible if your pet is a service animal or performs in a way that contributes to your annual income.
Of the two-thirds (67%) of Americans who are pet owners (defined as those who currently own a cat and/or dog), 24% have pet insurance, according to a new NerdWallet survey conducted online by The Harris Poll among 1,366 pet owners.
"Insurance helps cover the unanticipated costs of pet ownership and can be a huge relief for owners as they typically cover 80-90% of the costs, depending on the plan," says Dr. Sarah Gorman, managing veterinarian at Small Door Veterinary in New York.
Most plans offer between 70-90% reimbursem*nt. This means that when you submit a claim, all the charges that fall within the coverage limitations will be paid back to you at whichever percentage you chose when you enrolled your pet.
For example, if you have a 90% reimbursem*nt percentage, that means the company will pay 90% of the vet bill after the deductible is met, and you will pay 10%. So, let's say you have a policy with a $200 deductible and a 90% reimbursem*nt rate, and you got a vet bill for $1,000.
A pet wellness plan is what we like to call pet preventative or routine care. Wellness plans cover things like grooming, vaccinations, and dental care. But they also cover testing like bloodwork, fecal exams, and urinalysis.
Overall, we rated Lemonade Pet Insurance 4.8 out of 5 stars. The company is our top overall pick for pet insurance due to its comprehensive coverage and affordable rates.
Common reimbursem*nt levels are usually 70%, 80% or 90%. However, some insurance companies like Figo will reimburse 100% of your vet expenses. Your pet insurance company may also let you choose an annual coverage cap, such as $5,000.
Lifetime pet insurance is the most extensive pet insurance cover you can get for your cat or dog. As long as you keep renewing your policy, it'll last for their whole life and pay out for every new condition up to the policy limits each year.
According to our survey of more than 1,000 dog owners, most spent an average of $40 to $290 per month on their dogs — or an average of $480 to $3,470 annually. But this number will vary depending on your dog's individual needs, size, pet insurance plan's costs, and health status.
Is Embrace and Geico the same?
Geico's pet insurance, administered through Embrace, is a solid option for dog or cat owners looking to protect themselves from unexpected vet bills. Geico's accident and illness plan is very comprehensive, covering some expenses that other companies don't, like exam fees, lab tests and genetic conditions.
Pet Insurance Industry Trends
About half, or 44.6%, of pet owners stated they currently have pet insurance in our survey. On a larger scale, NAPHIA's 2022 State of the Industry Report found that more than 4.41 million pets were insured in North America in 2021, up from 3.45 million in 2020.
While standard plans typically exclude vaccines, many companies offer optional pet wellness plans for policyholders seeking additional coverage. These add-ons generally cover routine and preventive care, including vaccinations, for an additional $10 to $20 per month.
Depending on your pet's needs, your veterinarian might recommend a CT scan or x-ray instead of an MRI. Like MRIs, pet insurance typically covers both of those procedures. Pet insurance typically covers the cost as long as the scans do not relate to a pre-existing condition.
The typical waiting period is 14 days, particularly for illness coverage. Some pet insurance providers have a waiting period of only a few days for accident coverage. Hereditary conditions such as hip dysplasia typically have much longer waiting periods — up to a year.
