Ask a Pro: Furry Friends & Finance - Pet Insurance 101

Welcoming a pet into your family is a rewarding experience, but it also comes with significant financial responsibilities. According to the American Society for the Prevention of Cruelty to Animals (ASPCA), the average annual cost of owning a dog is about $1,400, while owning a cat costs around $1,100 per year. When considering initial, one-time, and special costs, the first-year expenses can average $3,200 for a dog and $1,900 for a cat.

Pet health insurance helps pet owners manage veterinary bills when their pets need medical care. It does not cover pre-existing conditions; instead, it covers health issues that arise after the policy takes effect. While this is a universal policy among pet insurance providers, these policies can cover hundreds of other conditions. Unlike human health insurance, pet insurance typically does not pay the veterinarian directly. Pet owners pay the bill and then submit a claim to their pet insurance provider for reimbursement. This system means there are no "networks," allowing pet owners to visit any veterinarian they choose.

PET INSURANCE PLANS

Accident and Illness Plan: This is the most popular and comprehensive plan, offering coverage for unexpected emergencies and illnesses. It can include an unlimited annual limit option and covers accidents (such as broken bones, lacerations, or car accidents), illnesses (including cancer, diabetes, allergies, arthritis, and skin and ear infections), as well as surgeries, prescription medicines, cancer treatments, and physical rehabilitation. The cost of this plan varies based on your pet’s age, breed, and location, so getting a personalized quote is necessary.

Accident-Only Plan: This budget-friendly plan covers costs related to accidents but does not cover illnesses. It’s available at a monthly rate as low as $6 for cats and $9 for dogs, regardless of age or breed.

Wellness Routine Care: This optional add-on to the Accident and Illness plan offers two tiers of coverage to help pay for routine veterinary visits, such as annual check-ups, vaccinations, and preventative medications for fleas and ticks.

Submitting a claim is as simple as sending the receipt from a veterinary visit through a website or mobile app, even while pet owners are still at the veterinarian's office. The app also allows users to check the status of their claim, access policy details, and retrieve their claim history. And not to worry – receiving reimbursements via direct deposit incurs no extra charge.

SCHULTZE AGENCY • JEFF & JAIME SCHULTZE

512-549-8700 • SchultzeAgency.com