5 Questions To Ask Before Buying Pet Insurance – Forbes Advisor – Technologist

Whether at the vet’s office, on your phone or at your local pet store, you may have noticed more buzz around pet insurance lately. And it’s not just a trend—the number of insured pets has doubled in the last four years, growing at an average rate of 26.6% since 2018.

As a dedicated pet owner, you might be considering pet insurance, but how do you know if it’s the right choice for you and your furry friend? With so many pet insurance companies out there, it can feel overwhelming to compare your options.

To help you find the right coverage for your pet, here are five questions to ask yourself before buying pet insurance.

Get the coverage your pet needs

Save big on tests, vaccines and essential care

Maximum annual coverage

$5,000, $10,000, $20,000, $50,000, $100,000

Reimbursement choices

70%, 80%, 90%

1. What Type of Pet Coverage Do I Need?

When it comes to your pet’s medical expenses, determine what kind of coverage you need: emergency care, routine care or both?

Most pet insurance providers offer a base accident and illness plan, which can cover diagnostics, procedures, hospitalizations and medications for accidents and illnesses. These base plans are designed for unexpected and often expensive issues, like broken bones, swallowed toys, allergies and even treatments for cancer and diabetes.

Some companies offer accident-only plans, which can be more affordable but often only cover injuries resulting from accidents.

As for routine care coverage, this includes regular visits to the vet for annual vaccines, bloodwork and heartworm prevention.

Understanding what type of plan makes the most sense for your pet’s needs can help you narrow down your options.

2. Can I Customize My Coverage?

Some insurance providers offer flexible plans, while others have fixed options with little room for adjustment.

For instance, Lemonade Pet Insurance allows you to customize nearly every aspect of your plan to fit your pet’s needs and your budget. Their coverage starts with a base accident and illness plan. From there, you can choose to add a preventative care package for routine vet visits.

Lemonade offers three preventative packages, including one for puppies and kittens that can cover things like spaying, neutering, microchipping, initial vaccines and exams. You can also choose from five optional add-ons to help boost your base plan. These include vet visit fees, physical therapy, behavioral conditions, dental illness and end-of-life care.

Customizing your coverage can help give you more control over the price and help ensure you only pay for what you need. Before purchasing, determine the coverages that are most important for your pet’s health and well-being.

3. How Much Should I Pay for Pet Insurance?

Understanding your budget for monthly premiums can help you choose a plan that protects your pet without straining your finances.

Every pet is unique, and the cost of pet insurance will depend on various factors, including your pet’s age, breed, sex and where you live. For example, Lemonade offers plans starting as low as $10 a month. On average, monthly coverage costs $27.75 for cats and $47.25 for dogs, according to Lemonade.

To determine the exact cost of insuring your pet, you can request a quote and explore different coverage options. But remember, monthly premiums are just one part of the equation. You’ll want to consider deductibles, co-pays and coverage limits to get a full picture of your potential expenses.

4. How Much Will I Get in Payouts When the Unexpected Happens?

Pet insurance is designed to ease the financial burden of emergency vet visits by reimbursing you for costly treatments. To make the most of your coverage, it’s important to understand how payouts work and whether you prefer lower premiums or higher reimbursements.

Here are three things to consider:

• Annual deductible: This is the amount you pay out-of-pocket each year before your insurance starts covering claims. A lower deductible means a higher premium.
• Co-insurance: This is the percentage of each eligible claim that the insurance company will cover. A lower co-insurance percentage means a lower premium.
• Annual limit: This is the maximum amount the insurance will pay out in a year. A lower yearly limit means a lower premium.

But how does this translate to claims? We’ll use Lemonade’s pet insurance policy as an example:

Let’s say your dog needs surgery costing $6,000. Your policy has 80% co-insurance and a $250 deductible. If your claim is approved, after paying the vet bill upfront, you could expect a reimbursement of $4,550. Here’s how that breaks down:

(Surgery cost x 80% Co-Insurance) – Deductible = Reimbursement

• Surgery cost: $6,000
• Co-insurance (80% of surgery cost): $4,800
• Deductible: $250
• Reimbursement: $4,800 – $250 = $4,550

If your annual limit is $20,000, you’d have $15,450 remaining for the rest of the year. Plus, after meeting your deductible with this claim, you likely wouldn’t need to pay it again for other claims that year.

5. What Matters to Me?

When you’re comparing pet insurance providers, think about what your non-negotiables are. Each provider will likely have its pros and cons, so understanding what you value most can help you make the best choice. Here are some key features and benefits to consider:

• Discounts and perks: Saving money and simplifying pet parenting can be significant benefits. For example, Lemonade offers discounts for insuring multiple pets and bundling policies. They also provide perks like access to Chewy’s Connect With a Vet service.
• Option to bundle: While some providers only offer pet insurance plans, others like Lemonade can cover everything you care about in one place—like your belongings, car and pets. By bundling multiple policies, such as renters, homeowners, auto or pet insurance, you could qualify for discounts on each. This also makes it convenient to manage all your policies and filing claims in one place.
• Customer experience: Consider how easily you can file claims, how long it takes for claims to be processed and the availability of customer support. For example, Lemonade allows you to sign up, file claims and manage your policy through their app. Plus, Lemonade reports that about 50% of pet insurance claims are handled instantly.
• Social impact: Choosing pet insurance that aligns with your values is the cherry on top of an excellent policy. Some insurers support causes you care about, such as animal rescue shelters and animal rights organizations. For example, the Lemonade Giveback supports organizations like the Society for the Prevention of Cruelty to Animals (SPCA) International and The Humane Society.

If you’re ready to compare coverage and find the right pet insurance for you, Lemonade allows you to compare pet insurance providers to find the perfect—or purr-fect—policy for your pet.