How much of your vet bill does pet insurance cover?

If you've ever had a pet that needed surgery or regular therapy for a chronic condition, chances are you already know the value of pet insurance. The simple fact is that your pets are part of your family, and when they get sick, they may need a veterinarian.

No matter if you're talking about a person, a puppy or any other being, healthcare can be expensive. Depending on the underlying problem, a surgery on a dog or cat could set you back several hundred or even several thousand dollars. 

Pet insurance may be an effective way to avoid expenses like these - especially if you purchase your policy when your pet is young and healthy. But how much of your vet bill will pet insurance cover? That's what we'll break down below.

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How much of your vet bill does pet insurance cover?

"Just like human health insurance, pet insurance policies can be purchased with different levels of coverage, premiums and deductibles," says Vincent Birardi, CFP, AIF, wealth advisor at Halbert Hargrove. "So, the odds are very likely that you can purchase a pet insurance policy that best fits your budget."

"Typically, a pet insurance policy will carry a deductible on each medical condition your pet may experience," he continued. "As an example, say your dog suffers from allergies and you have a policy that requires you to pay the first $500 of expenses incurred to treat your dog's allergies." As long as you pay the first $500, "your insurance company would then cover a percentage (perhaps up to 90%) of your out of pocket costs you may pay to treat the same allergies going forward."

So, once you've covered your deductible for a condition, your pet insurance will typically reimburse a percentage of any additional cost. That percentage depends on the policy you sign up for. In most cases, you'll be able to choose 70%, 80% or 90% reimbursement coverage. 

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Pet insurance coverage costs at different reimbursement percentages

Let's say your dog develops hip dysplasia - a painful and often costly condition. You find out that the problem can be corrected with a surgery that costs $2,700. Moreover, let's say your deductible for hip dysplasia is $500. In this case, insurance would cover the following amounts depending on your reimbursement level: 

• 70%: You would be responsible for $1,160 while your pet insurance would pay $1,540. 
• 80%: You would be responsible for $940 while your pet insurance would pay $1,760. 
• 90%: You would be responsible for $720 while your pet insurance would pay $1,980.  

How to cut the cost of pet insurance

As you can see from the example above, pet insurance can make a significant difference when your pets encounter health challenges. But when you buy any type of insurance, it's important to balance coverage with premiums. After all, no level of coverage is worthwhile if you can't afford to pay your premiums consistently. So, how do you cut the cost of pet insurance?

• Buy insurance as soon as you adopt your pet: Insurance companies typically calculate premiums based on the risk the insurance policy poses to the insurer. The younger your pet is, the less risk they pose to the insurer. So, if you buy your policy while your pet is young, you'll probably pay far lower premiums than you would if you waited a few years. 
• Compare your options: Insurance companies are private companies that are free to charge whatever prices they'd like for their services. In fact, premium pricing is one of the ways pet insurance companies compete for your business. Get quotes from multiple companies when you shop for pet insurance to make sure you're getting the best deal. 
• Raise your deductible: In most cases, if you're willing to accept a higher deductible, you'll pay lower premiums. So, if you find that your premiums are too high, consider increasing your deductible to make pet insurance more affordable. 
• Reduce your reimbursement percentage: As mentioned, you can usually choose to have your insurance company reimburse 70%, 80% or 90% of your covered veterinary expenses after your deductible. The lower this reimbursement percentage is, the lower your premiums will likely be.     

The bottom line

The options you choose when you purchase your pet insurance dictate the percentage of your vet bill your policy covers. As with any other kind of insurance, the highest pet insurance coverage is typically coupled with the highest premiums. Compare your options and adjust your coverage to make pet insurance as affordable as possible.