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Pet insurance helps cover the cost of your pet's eligible veterinary care, which may include treatment for accidents and illness or preventive care. Purchasing pet insurance can make caring for your pet more affordable, but coverage can vary widely from one policy to another, so it's important to understand how pet insurance works before you buy.
How Does Pet Insurance Work?
Much like health insurance for humans, pet insurance helps cover the cost of medical care for pets. You buy a pet insurance policy from an insurance company, pay premiums and file claims to get reimbursed for covered veterinary care at the clinic of your choice. Here are some pet insurance terms to know.
Annual Premium
Premiums are the amount you pay for pet insurance coverage. Your premiums may vary depending on factors including the type and amount of coverage you buy; your pet's breed, age and general health; and your location.
Deductible
When you file a pet insurance claim, you're responsible for paying a deductible, which generally ranges from $0 to $1,000. Your policy may have a per-treatment deductible or an annual deductible.
Reimbursement Rate
Some pet insurance policies reimburse you a set amount for specific veterinary treatments, such as $80 for X-rays. Others reimburse a percentage of your expenses, expressed as a reimbursement rate. Most pet insurance plans have reimbursement rates of 60% to 90%, but some reimburse 100% of covered costs.
Example: If your policy reimbursement rate is 80%, pet insurance pays 80% of covered costs and you pay the remaining 20% (plus any deductible).
Coinsurance
Coinsurance is the percentage of costs you're responsible for. (Think of it as the flip side of your reimbursement rate.) If your plan has a 90% reimbursement rate, your coinsurance is 10% of covered costs (plus any deductible).
Waiting Period
After you buy pet insurance, there's generally a waiting period during which veterinary care isn't covered. Waiting periods can vary, but common waiting periods are two days for accident coverage, two weeks for illness coverage and six months for coverage of orthopedic problems.
If you buy pet insurance with a two-week waiting period and your dog gets sick three days after you purchase your policy, insurance won't cover the vet visit or any related care.
Policy Caps
Pet insurance policies often limit, or cap, the total amount they'll pay out. Depending on your policy, these may be annual limits, per-incident limits or lifetime maximums.
Tip: Even with pet insurance, be prepared to pay the vet at your visit. Although some pet insurance policies pay veterinarians directly, most require paying the vet bill upfront and submitting a claim for reimbursement.
Which Pets Does Pet Insurance Cover?
Most pet insurance policies cover dogs and cats; exotic pets typically aren't covered. Exotic pets generally include birds; amphibians, lizards and reptiles; miniature pigs and goats; and small mammals such as guinea pigs, ferrets and rabbits.
Nationwide is one company that offers exotic pet insurance. Another option is the PetAssure veterinary discount plan, which covers all types of animals, including exotic pets. You'll receive discounts from participating veterinarians on treatment including wellness care, dental cleanings, cancer treatment, emergency care, surgery and hospitalization.
Learn more: How to Get Exotic Pet Insurance
Types of Pet Insurance Plans
There are three basic types of pet insurance: accident-only insurance, accident and illness coverage, and wellness coverage.
Accident-Only Coverage
Accident-only insurance covers veterinary care for accidents or injuries, such as eating poison, being hit by a car, tearing a ligament or being stung by a bee. It doesn't cover illnesses, preexisting conditions or preventive care.
Accident and Illness Coverage
In addition to accidents and injuries, this insurance covers short- and long-term illnesses, such as skin or ear infections, diabetes, cancer, arthritis or digestive problems. It typically doesn't cover preexisting conditions or preventive care.
Wellness Coverage
To help pay for preventive care and routine vet visits, you can typically add wellness coverage to your policy or purchase a standalone wellness plan. Pet wellness plans generally cover things like check-ups, dental cleanings, vaccinations and treatment or prevention for fleas, ticks and heartworms.
Learn more: What's the Difference Between Pet Insurance and a Wellness Plan?
What Does Pet Insurance Cover?
Although coverage may differ depending on your plan, pet insurance usually covers the following.
Accidents and Injuries
- Injuries from a car accident
- Emergency surgery
- Torn ligaments
- Cuts and lacerations
- Broken bones
- Accidental poisoning
- Ingesting foreign objects
- Electrical shocks
- Burns
- Bites to your pet from another animal
- Allergic reactions (such as to bee stings)
- Bloat
- Heatstroke
Common Illnesses
- Ear infections
- Skin infections
- Digestive problems such as acid reflux, GERD or esophagitis
- Diarrhea
- Vomiting
- Urinary tract infections
- Some plans cover preventable illnesses such as Lyme disease, parvovirus or parasites
Chronic Illnesses
- Allergies, such as to grass, mold, pollen or dust mites
- Arthritis
- Skin conditions such as contact dermatitis
Serious Illnesses
- Cancer
- Diabetes
- Heart disease
Hereditary or Breed-Specific Conditions
Many pet insurance policies cover hereditary conditions or breed-specific health issues if the pet shows no symptoms when you buy your policy. These include:
- Hip or elbow dysplasia
- Luxating patella
- Cherry eye
- Glaucoma
- Invertebral disc disease (IVDD)
- Progressive retinal atrophy
- Polycystic kidney disease
- Epilepsy
However, other pet insurance policies exclude hereditary conditions, so review the policy details carefully.
Tests and Diagnostics
If the test is related to a covered condition, pet insurance usually covers diagnostic tests such as:
- X-rays
- Blood tests
- Biopsies
- Ultrasounds
- CT scans
- MRIs
- Pathology reports
Medical Procedures
- Surgery
- Hospitalization
- Chemotherapy
Dental Disease and Dental Accidents
Preventive dental care typically isn't covered by pet insurance unless you have a wellness plan. However, pet insurance generally covers dental disease and accidents such as:
- Gingivitis
- Periodontal disease
- Teeth broken in an accident
- Root canals
- Tooth extraction, resorption or abscesses
- Oral tumors
Prescriptions
Pet insurance usually covers medications your veterinarian prescribes for covered conditions. Prescription pet food or dietary supplements are sometimes covered for a limited time.
Alternative Treatments
Pet insurance may cover alternative treatments prescribed or administered by a veterinarian, such as:
- Acupuncture
- Chiropractic care
- Physical therapy or rehabilitation
- Hydrotherapy
- Cold laser therapy
Behavioral Issues
Pet insurance often covers treatment for behavioral issues, such as destructive chewing, pacing or excessive barking. If prescribed by a veterinarian, covered care may include:
- Exams to diagnose behavioral problems
- Prescription medication
- Behavior modification training
Preventive Care
Pet wellness plans generally help cover preventive care such as:
- Wellness exams
- Vaccinations for illnesses such as rabies, Bordetella, flu, Lyme, leptospirosis, FIV, FELV, FVRCP and DHLPP
- Medications to prevent fleas, ticks and heartworms
- Heartworm testing
- Preventive dental care
- Microchipping
- Spaying and neutering
End of Life Expenses
Pet insurance typically covers euthanasia if your vet advises it for humane reasons. Some pet wellness plans cover cremation and burial.
Learn more: Pet Insurance for Multiple Pets
What Doesn't Pet Insurance Cover?
Pet insurance usually doesn't cover the following.
- Accidents or illnesses during the waiting period
- Preexisting conditions your pet had before your policy became effective, even if not diagnosed by a vet at that time
- Cosmetic or elective procedures such as ear cropping or declawing, unless medically necessary
- Grooming equipment or services such as bathing or nail trims
- Experimental treatments such as cloning
- Breeding-related procedures or health problems
- Preventable injuries due to abuse, neglect or illegal activities
- Long-term prescriptions for pet food or supplements
- Expenses unrelated to veterinary care, such as bank fees or taxes
Tip: Pet insurance doesn't cover you if your pet bites someone or causes property damage. This is typically covered by homeowners or renters insurance.
How Much Does Pet Insurance Cost?
The average annual cost of pet insurance is $110 to $386 for cats, and $193 to $749 for dogs, according to the North American Pet Health Insurance Association (NAPHIA). Premiums tend to rise as your pet gets older and more likely to suffer chronic or serious health issues.
| Animal | Accident and Illness Coverage | Accident-Only Coverage |
|---|---|---|
| Dog | Annual: $749.29 Monthly $62.44 | Annual: $193.29 Monthly $16.10 |
| Cat | Annual: $386.47 Monthly $32.21 | Annual: $110.03 Monthly $9.17 |
Source: North American Pet Health Insurance Association, 2024 data
If pet insurance sounds pricey, compare it to the average costs of common veterinary procedures, according to November 2025 Yelp data:
- Emergency care: $800 to $3,000
- Dental extraction: $500 to $3,000
- Urinary tract infection: $300 to $1,500
- Hospitalization: $600 to $3,000
- Emergency surgery: $1,500 to $7,000
- Chemotherapy: $3,500 and up
Tip: Paying pet insurance premiums monthly can be easier on your budget; however, many providers offer discounts for paying annually.
Learn more: Most Pet Owners Who Have Pet Insurance Say It's Worth the Cost
How to Buy Pet Insurance
Follow these steps to buy pet insurance.
1. Decide What Kind of Coverage You Need
Determine if you need wellness, accident-only or accident and illness coverage. Listing the specific concerns you want covered can help you decide. For example, if your dog frequently raids the trash can, you'll probably want insurance that covers accidental ingestion of foreign objects. Your vet can advise you on the health problems likely to affect your pet.
2. Research Pet Insurance Providers
If your home insurance or auto insurance carrier sells pet insurance, bundling policies could save you money. You can also search online for pet insurance carriers, ask your vet and fellow pet owners for recommendations, or check NAPHIA's list of member companies.
Tip: Mainstream pet insurance covers dogs and cats, but you'll need to buy exotic pet insurance if you have an exotic pet.
3. Get Quotes and Compare Coverage
You can get insurance quotes from individual insurance carriers or use a comparison site to gather multiple quotes. When comparing pet insurance policies, consider:
- Exclusions
- Waiting periods
- Coverage caps
- How preexisting conditions are defined
- Reimbursement rate and process
- Deductible amounts and whether they apply annually or per-incident
Tip: When comparing coverage, be sure to review a sample policy and list of covered prescription medications. You can typically find this information on the website or request it from the insurer.
4. Pay Your Premium and Enroll
You can usually buy pet insurance and enroll your pet online by providing information such as your pet's species, breed and age and your ZIP code. Policies typically renew annually.
Learn more: Pet Insurance Mistakes to Avoid
How to File a Pet Insurance Claim
Each insurer has their own process for filing a pet insurance claim, but it generally works like this:
- Submit your claim. You can typically submit claims using the insurance company's mobile app or website, by email, by fax or by mail. Check with your insurer to see if there's a time limit for filing claims.
- Provide documentation. This may include an itemized invoice, medical notes from the vet and a copy of your receipt.
- Await a decision. The insurance company reviews your claim and may request more information. You can usually track your claim status in your account online or in the mobile app.
- Receive payment. When your claim is approved, you can typically opt to be reimbursed via check or direct deposit.
Learn more: What Is an Insurance Claim?
Frequently Asked Questions
Is Pet Insurance Worth It?
Pet insurance may be worth it if your pet is older, you own a breed prone to health problems, or you don't have a solid emergency fund and would have difficulty paying expensive vet bills. To decide if pet insurance is worth it, weigh the cost against the potential benefits and ensure the policy you buy covers the health issues your pet is likely to face.
Do I Need a Good Credit Score for Pet Insurance?
It's possible insurance companies in some states may consider your credit-based insurance score when you apply for pet insurance. However, it's not the norm to do so. Even if insurers do check your credit-based insurance score, your pet's breed, age and health will have a bigger impact on your pet insurance premiums.
Where Is Pet Insurance Accepted?
Pet insurance is typically accepted everywhere, with no need to use a certain network of veterinarians. One exception: If your pet insurance company pays veterinarians directly, you'll need to use a vet that accepts the insurance.
When Do I Get Reimbursed for Pet Insurance?
It typically takes five to 30 days for a pet insurance claim to be processed, although the specific timeline depends on your provider. Once your claim is approved, reimbursement generally takes two to five days for direct deposit and five to 10 days for a paper check.
The Bottom Line
A good credit score can help qualify you for favorable terms on personal loans or credit cards—both other options for paying a big vet bill. As you monitor your pet's health, be sure to keep tabs on your credit health too. Consider signing up for Experian's free credit monitoring service. It tracks your credit score and alerts you of important changes that could signal fraud.