In 2022, 5.36 million pets were insured in the US; for complete coverage, the majority of pet owners opted for accident and illness insurance.
While some plans, like Trupanion, work with veterinarians to pay your vet directly, the majority of pet insurance plans will refund you after you pay the medical fees.
Your policy may cover normal care, accidents, breed-specific ailments, and diseases like arthritis, cancer, and allergies, depending on the specifics of your pet insurance policy.
The North American Pet Health Insurance Association (NAPHIA) reports that from 4.4 million in 2021 to 5.36 million in 2022, there were more insured pets in the US. Dogs made up 80.1% of the insured pets, followed by cats (19.9%). With 92.8% of pets insured by accident and illness plans or incorporated wellness programs, the majority of owners opted for comprehensive insurance plans.
Pet insurance, despite being a relatively new market, can help families by covering some of the veterinary expenses related to owning a pet. However, what is covered by pet insurance? How does pet insurance operate, too? To decide if pet health insurance is worthwhile for your furry family members, read more about it below.
A health plan that an owner contributes to either monthly or annually in exchange for reimbursement of qualified veterinary costs is known as pet insurance. The owner pays the veterinarian in full when their pet is examined for a covered condition, and they subsequently file a claim with their insurance carrier for reimbursement, as specified by the policy’s terms. While some pet insurers cover other animals, the majority of pet insurance plans cover just dogs and cats. Nationwide provides covers for exotic pets including birds and reptiles, and ASPCA Pet Health Insurance offers plans specifically for horses.
Typically, pet insurance plans come in three different varieties.
In the event of an accident, such as a broken bone or ingestion of foreign items, an accident-only plan will pay for qualified veterinary fees.
Although it costs more, an accident and illness plan covers both kinds of veterinarian care and offers the owner broader protection. Infections, cancer, rheumatoid arthritis, diabetes, and allergies are examples of illnesses.
Some carriers provide extra add-on or independent policies called routine wellness or preventative care plans that include things like vaccinations, flea treatments, and spay/neuter procedures.
Each insurance may have different deductibles, coverage limitations, premiums, and so forth. See our rankings of the Best Pet Insurance Companies to learn more about different pet insurance policies and providers.
The main mode of operation for pet insurance is reimbursement. This essentially implies that you pay the veterinarian up front and then submit a claim to get your qualified costs reimbursed. Certain veterinarians are paid directly by some corporations, such as Trupanion, so your only out-of-pocket expenses will be for ineligible services.
Your premium and the maximum amount you can recover are affected by the deductible, reimbursement percentage, and annual limit that you select when buying a pet insurance policy. Prior to receiving payment from the insurance company, you must pay your deductible. The maximum amount you can claim is also determined by the policy’s yearly limit. The eligible expenditures are then repaid according to the proportion you choose, which is typically 70% to 90% of the cost.
While the procedures for filing claims and getting reimbursed can differ, they usually operate as follows:
Make an appointment with the veterinarian.
Take your animal companion to the vet.
Pay the entire amount due to the veterinarian.
Include a copy of the bill with your online or mobile app claim from the pet insurance.
After the claim has been approved by the pet insurance provider, you will receive your allowed reimbursement by mail or direct transfer.
The length of the review and approval procedure varies based on the firm, the policy, and the severity of the accident or illness; it may take several days, several weeks, or even a month.
You can utilize your coverage with any licensed veterinarian, specialist, or emergency clinic of your choice because the majority of pet insurance policies operate on a reimbursement basis. Pet health insurance does not have provider networks, in contrast to health insurance for humans. Nevertheless, in order for veterinarian fees to qualify for reimbursement, certain firms could have specific conditions that need to be fulfilled.