Is Pet Insurance Worth It?

Key Takeaways

• Before purchasing a pet insurance policy, check the specific plan details to understand what is and isn't covered.
• It's best to buy pet insurance when an animal is young and in good health
• Most pet insurance plans exclude pre-existing conditions, covering only new injuries and illnesses.

According to the North American Pet Health Insurance Association, more than 6.4 million dogs and cats in the U.S. were insured in 2024—a 13% increase from the previous year. Since 2020, that number has more than doubled, reflecting a growing trend among pet owners who are seeking financial protection for veterinary care. Between 2023 and 2024, the U.S. Bureau of Labor Statistics found that veterinary service costs surged by 7.9%—more than two and a half times the average increase for all consumer goods. Over the past decade, the price tag for veterinary care has climbed nearly 60%!

With the cost of veterinary services where it is today, it's no wonder that more owners are looking to pet insurance to help offset expenses associated with their companion's care. While pet insurance can help ease the financial burden of an unexpected vet bill, it may not the right choice for everyone. In this guide, we'll look at key considerations, as well as the pros and cons of a pet insurance policy so you can make a more informed decision.

What is pet insurance?

Pet insurance is a way to help owners manage the cost of veterinary care for their companions, covering unexpended accidents, illnesses, and, in some policies, routine checkups depending on the insurance plan you select.

Pet insurance is similar to health insurance for humans in that you pay a monthly premium, and when your pet receives treatment, you submit a claim. Typically, you'll be required to cover the vet bill upfront, and the insurance company will reimburse you based on your policy's coverage and deductible.

For example, let's suppose your pet insurance policy has a $500 deductible and a 90% reimbursement rate. If your cat needs emergency surgery costing $2,000, you would pay the full amount upfront. Your insurance company then deducts the $500 deductible, leaving $1,500 eligible for reimbursement. With a 90% coverage rate, you receive $1,350 back, bringing your total out-of-pocket cost to $650 instead of the full $2,000.

Do you need pet insurance?

Much like selecting a health insurance plan for yourself, pet insurance isn't a one-size-fits-all solution. Deciding whether pet insurance is right for you will depend on a number of factors such as the health of your pet, your budget, specific coverage needs, and most importantly, how you will manage unexpected vet bills. Ask yourself, do you have the readily available finances to comfortably pay out-of-pocket for a large vet bill or will you struggle to find the resources to get you pet the care they need in an emergency?

What does pet insurance cover?

Pet insurance typically covers unexpected veterinary expenses, including accidents, illnesses, and emergency treatments. Most plans will also pay for things such as diagnostic testing, surgeries, hospital stays, and medications. As for routine care, some pet insurance policies may offer optional wellness coverage for vaccinations, annual checkups, and dental cleanings.

Pro Tip: Pet insurance from Liberty Mutual offers peace of mind with policies that include unique features not offered by other plans, shorter waiting times, affordable pricing, discounts, and much more!

What factors can affect pet insurance costs?

Factors that can influence the cost of pet insurance typically include:

• Your pet's age. Older pets typically cost more to insure.
• Your pet's breed. Some breeds are prone to certain hereditary conditions.
• Where you live. Veterinary costs will vary by region.
• The type of coverage you select. Plans that cover more services will cost more than an accident-only policy.
• The amount of your deductible and reimbursement rate. Lower deductibles and higher reimbursement rates will cost you more in monthly premiums.
• The policy's maximum coverage limit for the year. Pet insurance policies with higher payout limits will generally cost more.

Keep in mind that most pet insurance policies will exclude pre-existing conditions, so it's important to review the details of a plan before purchasing a plan.

The pros and cons of pet insurance

Pros

• Financial protection to help cover costly vet bills for accidents and serious illnesses
• Customizable plans that allow you to select the deductible, reimbursement rate, and coverage limit of your policy based on your budget and needs of your pet.
• Access to more advanced care options so you can afford specialized treatments for your pet such as surgery, cancer care, and chronic condition management.
• May offer additional services such as 24/7 pet telehealth for pet related health questions.
• May offer coverage for alternative pet treatments such as chiropractic care, acupuncture, and hydrotherapy.
• There may be opportunities to bundle with your existing home or auto policies for more affordable coverage.

Cons

• Most pet insurance policies will require you to pay vet bills first and then submit a claim for reimbursement.
• Pre-existing conditions that your pet had before enrolling in a play will not be covered.
• Monthly premiums can be high if you have a breed that is prone to certain health issues.
• Most policies have a maximum annual or lifetime payout limit which will limit just how much you may be reimbursed.
• You'll usually need to wait a set period before your pet insurance policy becomes active and eligible for coverage.

How to get pet insurance

1. Get a quote for pet insurance online at Liberty Mutual.
2. Call for a pet insurance quote, so our representatives can walk you through the process: 844-250-9199