How Much Pet Insurance Do I Need?

Reviewed by Dr. Fiona Lee

Deciding how much insurance coverage you need can be one of the most challenging parts of choosing a pet insurance plan. You want to be able to afford veterinary care in case of an unexpected accident or illness. But you also need a plan you can budget for. Having the right amount of coverage is essential, but there's no one-size-fits-all policy. This article will offer tips to help owners determine how much insurance they need, based on their budget and their pet's unique situation.

How Much Pet Insurance Do I Need?

The amount of pet insurance you'll need varies based on factors like your pet's breed, age and health. Aim for enough coverage to handle unexpected accidents or illnesses, ranging from a few hundred to several thousand dollars. A good starting point is a policy that covers at least $5,000 to $10,000 annually for accidents and illnesses.¹

For pets with higher health risks—or if peace of mind is a priority—consider policies with higher coverage limits or unlimited annual coverage.¹

When would unlimited coverage come in handy? In 2023, the top paid insurance claim for a dog was $51,133 for a 6-year-old male Golden Retriever's lymphoma. For a cat, it was $59,470 for a 5-year-old male Domestic Shorthair cat's spine and disc issues.² While these claims aren't common, they're examples of how high the costs of veterinarian care can get. This is why some people choose unlimited coverage if their budget allows it.

Calculating the Right Amount of Pet Insurance To Get

Nearly half of all pet owners underestimate how much it costs to care for their pets over a lifetime.³ It's sometimes easier to budget for an expected monthly premium versus a larger, surprise veterinarian bill. Consider these seven factors when deciding how much insurance to get.

1. Assess your pet's breed and age

Your pet's breed and age can impact the type and amount of coverage you need (and can afford).

Older pets have more health issues that may benefit from a plan with a larger annual maximum. Younger pets need more vaccinations and could therefore benefit from a routine wellness add-on.¹

In addition, certain breeds may be susceptible to health issues that require more comprehensive plans. For example, French Bulldogs are prone to respiratory problems, which may require more extensive coverage.⁴ This also means you need to watch out for breed-specific exclusions. Some policies won't cover certain health issues common to specific breeds.⁵

These factors will affect how much your insurance costs. Here are just a few examples based on adult pet breeds.⁶

^{The premiums listed here are average estimates and may vary based on factors such as your pet's age, breed, location, and the chosen coverage level. Please refer to a personalized quote and review the sample policy for specific details and conditions that may affect your actual premium.}

2. Consider your financial situation

A pet insurance plan's monthly premium varies based on the deductible and coverage options. For example, lower deductibles have higher premiums, and higher deductibles have lower premiums. Consider your budget and choose a plan that fits comfortably within it.

Remember: You'll pay a monthly premium and then file a claim if your pet needs medical care.⁷ Some plans pay your veterinarian directly, but most reimburse you for covered claims later, after you've paid the veterinarian up front.⁵ So you'll need some money (or financing) to cover the up-front payment until the eligible reimbursement.

Some other factors can also affect affordability. For example, some insurance plans offer discounts on premiums if you insure multiple pets.⁵ With others, premium costs might increase as your pet gets older.⁷

3. Evaluate the common health risks

Evaluating the common health risks your pet might face can also inform you on how much pet insurance coverage you may need.

In the 2024 State of the Industry report by the North American Pet Health Insurance Association, the most common conditions that led to insurance claims for cats and dogs included the following:²

The costs to diagnose and treat these common health problems can vary. But average prices typically include the following:⁸

• Diabetes in cats: $300 to diagnose and $240 to $360 a year for treatment
• Heartworm: $1,500 or more for treatment
• Torn ACL: $3,300
• Cancer: $5,000 or more

Even the average cost of tests to diagnose your pet can add up:⁹

• Blood work: $80 to $200
• Heartworm test: $45 to $50
• Fecal exam: $25 to $45
• X-ray: $150 to $250
• Ultrasound: $300 to $600
• Allergy test: $195 to $300

If you need to visit an emergency veterinarian, the average costs can be high:⁹

• Blood pressure test: $150 to $250
• Oxygen therapy: $500 to $3,000
• Wound treatment: $800 to $2,500
• Emergency surgery: $1,500 to $5,000

As odd as it may sound, you should also evaluate the cost of aging—a health risk all pets face. Make sure your plan won't drop your pet at a certain age, which would force you to find a new plan that likely costs more and doesn't cover your pet's preexisting conditions.⁷

Finally, you'll also want to consider breed-specific health issues, as explained in the previous section.

4. Choose the right coverage plan

The most common types of pet insurance plans are:⁷

• Accident-only: This only covers injuries from accidents (like broken bones).
• Accident and illness: This covers both accidents and unexpected illnesses, including serious diseases like cancer.
• Wellness: These routine care plans cover annual veterinary checkups, preventive medicine and more.

The more coverage a plan offers, the higher the monthly premium. Thus, an accident-only plan will cost less than an accident and illness plan, but it will also cover less.

For example, in the United States, the average yearly premium cost for cat and dog insurance in 2023 was:²

If your budget allows, consider combining plans to cover your pet's full range of needs. This could include add-ons like physical therapy and rehabilitation coverage, or a stand-alone wellness plan to cover routine care. Wellness plans are especially helpful in an uncertain economic climate that tempts pet parents to skip routine services like dental cleanings.¹⁰

Pets Best offers two tiers of wellness plans for cats and dogs that cover:

• Certain vaccinations
• Preventive medication (like flea and tick prevention)
• Teeth cleaning
• Spays and neuters
• Microchipping
• Routine wellness exams
• Diagnostic panels

Wellness plans tend to run $20 to $60 extra a month, depending on where you live.¹¹

5. Factor in your lifestyle

Consider your lifestyle and your pet's personality when choosing how much coverage is best. Active pets or those with a higher risk of injury may need more coverage. Is your cat an adventurous feline who loves jumping high? Is your dog a little too friendly at the dog park and more likely to get into a scuffle by bothering a less friendly dog? Is your cat indoor-only or indoor and outdoor?¹

6. Take veterinarian costs into account

Veterinarian costs can vary by location and specialty, too. Knowing the average veterinarian costs in your area can help you determine the level of coverage you need. For example, the average cost of a veterinarian visit in Alabama is $61.26, while it's $71.45 in California, $52.78 in Michigan and $80.65 in Maryland/Washington, D.C.⁹ Consult with your veterinarian to understand potential future expenses.

7. Review deductibles, reimbursement rates and limits

Review the fine print on your potential policy, including limits, reimbursement rates, deductibles and the like.¹²

• Premiums: You'll pay a monthly premium just to have a policy.
• Deductible: This is the amount you need to pay for covered services every year before you start getting reimbursed.
• Reimbursement/co-insurance: After the deductible, your plan will cover a certain percentage of your cost, usually from 60% to 100%. Some may only reimburse a percentage of what they consider a reasonable cost versus your actual cost.
• Exclusions: Look for any exclusions, like preexisting conditions, age limits or breed limits.
• Maximum cap: Some plans have a maximum amount they'll pay each year, over a lifetime or on a specific claim. Others have unlimited caps.

Choosing Pet Insurance Is a Balancing Act

When choosing how much pet insurance to get, you'll need to assess your pet's health, breed and lifestyle compared to your budget. Look for a balance between lower premiums and higher reimbursement. How much can you afford per month to lower potential out-of-pocket costs? A combination of financial planning and an understanding of pet health risks can help you find the right insurance coverage.

Pets Best Can Help You Keep Your Pet Healthy

Purchasing pet insurance may help you protect your dog or cat from diseases and illnesses. At Pets Best, our dog insurance plans and cat insurance plans can be customized for your pet's unique needs. In addition, Pets Best policyholders can speak to a veterinary expert anytime through a 24/7 Pet Helpline. This can be a big help when you have questions about your pet's health.

Sources/ Citations

1. "What is a good annual limit for pet insurance?" Bradford Cuthrell (10/2024), MarketWatch, https://www.marketwatch.com/guides/pet-insurance/what-is-a-good-annual-limit-for-pet-insurance/

2. "State of the industry report: 2024 highlights," (4/2024), North American Pet Health Insurance Association, https://naphia.org/wp-content/uploads/2024/04/NAPHIA-SOI2024-Report-Highlights_Public-May16.pdf

3. "Lifetime of care study," (1/2022), Synchrony, https://petlifetimeofcare.com/

4. "What is pet insurance and how does it work?" Mandy Sleight (5/2024), U.S. News & World Report, https://www.usnews.com/insurance/pet-insurance/what-is-pet-insurance

5. "Do you need pet insurance?" (n.d.), American Veterinary Medical Association, https://www.avma.org/resources-tools/pet-owners/petcare/do-you-need-pet-insurance

6. "How much does pet insurance cost? (2024)" Jason Metz (8/2024), Forbes Advisor, https://www.forbes.com/advisor/pet-insurance/pet-insurance-cost/

7. "LEGALease: Pet insurance - frequently asked questions," (n.d.), New York State Bar Association, https://nysba.org/legalease-pet-insurance-frequently-asked-questions/

8. "Is it worth it to have pet insurance?" Jim Probasco (1/2022), Investopedia, https://www.investopedia.com/is-it-worth-it-to-have-pet-insurance-5075941

9. "Average veterinary pricing by procedure," (n.d.), CareCredit, https://www.carecredit.com/vetmed/costs/

10. "Facing economic uncertainty, clients delay veterinary visits," R. Scott Nolen (11/2023), American Veterinary Medical Association, https://www.avma.org/news/facing-economic-uncertainty-clients-delay-veterinary-visits

11. "How to find the best pet wellness plan for your pet," Jennifer Coates (5/2022), PetMD, https://www.petmd.com/general-health/pet-wellness-plans

12. "Pet health insurance," (n.d.), Illinois Department of Insurance, https://idoi.illinois.gov/consumers/consumerinsurance/pets.html