by Jennifer Sharpe
If you’re thinking about bringing home a new pet for Christmas, don’t forget the pet insurance, warns the Oklahoma Insurance Department.
Unfortunately, many owners either forget or choose not to obtain this valuable coverage for their dogs or cats, whether the pet is a longtime family member or joining the household for the first time.
According to a Forbes Advisor analysis, two-thirds of households in the United States had a pet as of 2023. But in 2022 and 2023, a North American Pet Health Insurance Association state-of-the-industry report said only about 4 percent of dogs and 1 percent of cats were insured.
Investigate Coverage and Costs
Melina Acra, a pet insurance expert with Spot Pet Insurance, said the most important thing when considering pet insurance is how much you are willing to spend on your pet’s health care.
“Pet insurance works by reimbursing
you for eligible veterinary expenses, but the specifics of coverage and costs vary significantly between providers and plans,”
Acra said. “You’ll typically pay a monthly premium in exchange for coverage, and the cost of this premium depends on a number of factors, including the plan you choose, the deductible you select, your pet’s age and breed, and your location. If you’re considering getting pet insurance, weighing the cost of insurance against the potential cost of unexpected veterinary care is a good place to start.”
According to Forbes Advisor, the national average monthly cost of pet insurance is $44 for a dog and $30 for a cat for a policy with $5,000 annual coverage, a $250 deductible, and an 80 percent reimbursement level. The cost is $56 for a dog and $47 for a cat for a policy with unlimited annual coverage, a $500 deductible, and a 90 percent reimbursement level. But unexpected vet bills can cost thousands of dollars, according to Forbes Advisor, with the average cost of surgery for a swallowed foreign object at $3,500 for dogs and $3,400 for cats, for example.
In Oklahoma, the average monthly pet insurance premium for a policy with $5,000 annual coverage, $250 deductible, and 80 percent reimbursement is $21, and a policy with unlimited coverage, $500 deductible, and 90 percent reimbursement is $31 per month, according to Forbes Advisor.
Define Essential Features
“Defining essential features for a pet insurance policy comes down to each pet owner’s financial situation and the age and overall health of the pet,” said Acra. “Older pets and certain breeds are more prone to developing health issues, which might lead to more frequent vet visits and higher veterinary costs. This would make an ‘accident and illness’ plan essential.”
She added, “You may want to think about your own risk tolerance. If you’re someone who prefers to have a safety net in case of unexpected veterinary expenses, even if it comes at a higher monthly cost, then opting for a more comprehensive plan with a lower deductible might be the better choice. If you’re comfortable assuming more financial risk, then a plan with more limited coverage and a higher deductible could be a better fit.”
In addition to the essential plan components — coverage, deductible, and reimbursement rates — Acra said the following policy features are nice extras to have but not always necessary: no upper age limit, no breed restrictions, coverage for alternative therapies, a money-back guarantee on the policy, and a 24/7 telehealth helpline such as the one offered by Spot Pet Insurance.
The new year is the perfect time to evaluate your pet’s medical needs and add or modify a pet insurance policy to your family’s health-care plans.
