Veterinary medicine can now offer pets many of the treatments available to people, including MRI scans, chemotherapy, orthopedic surgery and specialty care, and the bills can rival human medical costs. Pet insurance helps owners budget for those costs. But pet insurance works differently from health insurance, and the details matter. This guide covers how pet plans work, what to watch for, and the separate question of liability when your pet hurts someone.
How pet insurance works
Pet insurance is usually a reimbursement product. You pay the veterinarian, submit a claim, and the insurer reimburses you for covered costs, minus your deductible and co-insurance. Most plans let you use any licensed veterinarian. The National Association of Insurance Commissioners publishes a consumer guide to the product: NAIC – Pet insurance.
Types of plans
- Accident-only: covers injuries such as broken bones, swallowed objects and bite wounds. Lower cost, narrower protection.
- Accident and illness: the most common type. Covers accidents plus illnesses such as cancer, infections, digestive problems and, depending on the plan, hereditary and chronic conditions.
- Wellness or routine care: often sold as an add-on, covering vaccines, checkups and dental cleanings on a fixed schedule. Compare the cost of the add-on with what you'd spend anyway.
Key terms to compare
- Deductible: the amount you pay before reimbursement. It may be annual or per condition.
- Reimbursement rate: commonly 70%, 80% or 90% of covered costs after the deductible.
- Annual or lifetime limit: the maximum the plan will pay. Some plans offer unlimited annual benefits.
- Waiting periods: time after enrollment before coverage starts. Accidents often have a short wait; illnesses and certain orthopedic conditions (such as cruciate ligament injuries) can have longer waits.
- Exam fees: some plans cover the vet's exam fee for a sick visit; others don't.
- Age limits and premium increases: premiums usually rise as pets age, and some plans limit enrollment for older pets.
Pre-existing conditions
Pet insurance generally excludes conditions that showed signs or symptoms before coverage started or during a waiting period. Some plans distinguish curable pre-existing conditions (for example a resolved ear infection) that may become eligible after a symptom-free period. Enrolling while your pet is young and healthy is the best way to minimize exclusions. Insurers often review veterinary records at the first claim, so be accurate on the application.
Is pet insurance worth it?
That depends on your finances and risk tolerance. Pet insurance makes most sense if a large unexpected vet bill would be hard to pay, or would force a difficult decision about treatment. Some owners choose to self-insure by setting aside savings for vet care. Questions to ask:
- Could you comfortably pay a several-thousand-dollar emergency bill?
- Is your pet's breed prone to particular conditions? Check whether hereditary conditions are covered.
- How will premiums change as your pet ages?
Dog bites and pet liability: a different coverage
Pet insurance covers your pet's veterinary care. It does not cover injuries your pet causes to other people or animals. That's a liability exposure, usually handled by your homeowners or renters policy.
- Dog bite and dog-related injury claims are a significant source of homeowners liability claims; Triple-I publishes annual data: Triple-I – Dog bite claims.
- Some insurers restrict coverage based on breed or a dog's bite history, or exclude animal liability entirely. Others assess dogs individually.
- California has a strict liability dog bite statute, Civil Code §3342, which makes owners liable for bites in public places or lawfully on private property, regardless of the dog's prior behavior.
- If your homeowners policy excludes your dog, ask about canine liability policies, and consider a personal umbrella.
Landlords and HOAs may require tenants with dogs to carry liability coverage. See our landlord insurance guide and umbrella guide.
Pets in the car and in disasters
- Some auto policies include limited coverage for pet injuries in a car accident; check your policy.
- Include pets in your disaster plan: carriers, food, medicine, vaccination records and a list of pet-friendly shelters. FEMA's guidance: Ready.gov – Pets. Our wildfire checklist includes pet steps.
Pet insurance shopping checklist
- ☐ Accident and illness vs. accident-only
- ☐ Deductible type and amount
- ☐ Reimbursement rate and annual limit
- ☐ Waiting periods, especially orthopedic
- ☐ Hereditary, congenital and chronic condition coverage
- ☐ Exam fees, dental illness, behavioral therapy and alternative care
- ☐ How premiums change with age
- ☐ Separate check of your homeowners or renters liability coverage for your pet
Contact us or call (877) 711-4545.
Frequently asked questions
Does pet insurance cover pre-existing conditions?
Usually not. Most plans exclude conditions that showed symptoms before coverage began, though some may cover curable conditions after a symptom-free period.
How does pet insurance pay claims?
Most plans reimburse you after you pay the vet, minus your deductible and co-insurance.
Does pet insurance cover my dog biting someone?
No. Pet insurance covers vet bills. Injuries your pet causes to others are a liability exposure, usually covered by homeowners or renters insurance, subject to exclusions.
What is a waiting period?
The time after enrollment before coverage begins. Illness and orthopedic conditions often have longer waiting periods than accidents.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. This isn't legal, tax or financial advice or a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.