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Uzone.id – Many pet owners build a deep bond with their furry friends, often considering them family members. It’s no surprise that many of these owners want to protect their pets financially, just as they would a human family member. But what exactly is pet insurance, and is it a worthwhile investment?
While pet insurance can add to your monthly expenses, it can also provide significant peace of mind. In addition to routine care like food and vaccinations, unexpected medical bills can arise, such as those related to accidents, illnesses, or chronic conditions.
However, it’s important to understand that policies can vary widely in terms of coverage, limitations, and costs. While pet insurance can be a valuable tool, it’s essential to carefully review the terms and conditions to determine if it’s the right choice for you and your pet.
What is pet insurance?
Pet insurance is very similar to your health insurance. Pet insurance pays some or all of the medical bills for your pet, depending on the type of coverage you have.
Pet insurance was born in Sweden in 1890 when Claes Virgin is said to have written the first insurance policy protecting horses and livestock. It took years before pet insurance got a foothold in Europe, and it wasn’t until 1982 that the first pet in the US was insured.
The policy was for Lassie, the iconic TV and movie collie who Veterinary Pet Insurance—now part of insurance giant Nationwide—said was the first insurance provided for pets.
It’s difficult to know how many dogs and cats there are in U.S. households, but the American Veterinary Medical Association estimates it to be around US$144 million to 151 million. Of those, about 4.8 million are insured, representing a little over 3% of total dogs and cats in U.S. households, according to a 2023 industry report from the North American Pet Health Insurance Association (NAPHIA).
According to NAPHIA calculations, the total volume of premium insurance policies in the US will be approximately US$3.2 billion by the end of 2022. This represents a 157% jump in pet insurance payments since 2018 or more than 20% annually. So, yes, pet insurance is gaining a following, but it still has a very long way to go before it becomes commonplace.
How much does pet insurance cost?
Pet insurance is just as competitive as human health insurance but on a much smaller scale.
Pet care costs are also increasing due to higher prices of medications, equipment, and overhead costs coupled with a lack of qualified veterinarians.
Dog owners will pay about US$640 per year (about US$53 per month) for an “accident and illness” policy, which is the most basic policy, according to NAPHIA. Cat owners pay less at US$387 per year or US$32 per month. But it usually occurs in younger animals. As a dog ages, expected medical costs also increase—and so do annual premiums.
For a basic accident and illness plan, costs are close to the NAPHIA average of $644 per year which covers usual diagnosis and treatment. Adding options like medical exams or prescriptions pushed the average cost to $851.
When we recalculated for a 10-year-old golden retriever, the annual costs jumped to a range of US$1,231 to US$1,578. And that’s without the added features, which also become more expensive as your pet gets older.
Compare that to the average annual vet fee of US$230 in Illinois, according to Canine Journal. The cost of an emergency visit falls over a wide range depending on the severity of the case, according to Betterpet.com.
Emergency costs average $100 to $200, and overnight stays can cost as much as US$2,000. That may or may not include diagnostic tests. A bout of gastroenteritis can cost US$200 to US$3,000, while severe trauma costs range from US$2,000 to US$10,000.
So with the costs of keeping a pet that high, protection from pet insurance is important for you to consider.
