(NerdWallet) – Our pets are our cute and adorable companions, and just like everyone else under our roof, they help defray some of our expenses. However, unlike a roommate, you can't expect your pet to cover some of your living expenses.
Two-thirds (67%) of Americans are pet owners (defined as people who currently own a cat or dog), according to a new NerdWallet survey conducted online among 1,366 people by Harris Poll. Of these, 24% have pet insurance. pet owner. Pet insurance may help reduce certain medical costs, but it can be expensive and isn't suitable for everyone.
Insurance is a tool that protects you from unexpected and costly expenses. Insuring your car is required in part by law, but it's usually more manageable to pay a few hundred dollars a month than to cover the high costs of vehicle damage and injury from a serious accident. There is also a reason. Similarly, you can insure your valuable jewelry to protect yourself from financial loss if it gets damaged or stolen.
Similar to these examples, pet insurance requires regular payments in the form of premiums in exchange for coverage for large expenses. However, as with these examples, the decision to purchase pet insurance should be made after carefully considering your needs and coverage options.
Here are four times when it might make sense to sign your furry friend up for coverage.
1. You expect your pet to need more than routine care.
Research shows that more than two in five (42%) pet owners who purchase pet insurance do so because their pets often require care that is covered by insurance. ing. If you expect to have ongoing covered expenses, you can level out the costs by using monthly premiums. For example, some dog breeds may be more prone to medical problems than others, so look at the characteristics of your particular pet breed when evaluating potential care costs.
However, pet insurance rarely covers pre-existing conditions. This means, for example, that pet insurance probably won't pay for ongoing kidney problems or cancer treatment if your pet had such a disease before you took out the policy. Routine care and spaying/neutering may also not be covered unless you pay extra for preventive health insurance.
For these reasons, it's a good idea to budget for daily expenses, whether or not you purchase pet insurance. Carefully read the details of the insurance you are considering to determine how often you are likely to have a successful claim.
2. Your pet is accident prone
Some pet insurance companies offer accident-only coverage. Maybe your dog has wanderlust and you're worried about getting hit by a car. Or maybe you have a tendency to eat things you shouldn't. In that case, accident insurance may cover emergency costs related to these events. Accident-specific pet insurance is generally less expensive than more comprehensive insurance.
3. Eligible expenses cannot be paid out of pocket
If you can pay for your pet's necessary treatment with cash, you may not need insurance. You're not only paying for veterinary care, you're also paying for insurance services. Ask yourself: If your dog needs expensive surgery, can you afford the thousands of dollars in surgery costs? Then insurance may not be a great deal.
40% of pet owners who purchase pet insurance do so to save money, but having insurance doesn't mean you won't have to pay out-of-pocket. Like human health insurance, pet insurance typically has deductibles and coverage limits. For example, if your annual deductible is $500, you must cover her first $500 of vet bills in his first year before the policy starts covering costs. And sometimes you only pay a portion.
Bottom line: Read the details of your insurance policy to find out what you're actually getting in exchange for your premium. You may find it easier and more cost-effective to build a separate emergency fund for unexpected pet care expenses.
4. Peace of mind worth the premium
According to a survey, more than half (57%) of pet owners who purchase pet insurance say they do it for “peace of mind,” which is the most frequently cited reason for purchasing pet insurance. That's what it is. The cost of caring for a pet can be significant, and 13% of pet owners say the cost is a source of financial stress. If the thought of expensive emergency veterinary care makes you nervous, a monthly pet insurance premium may seem like a reasonable amount to give you financial and emotional peace of mind.
methodology
The survey was conducted online by Harris Poll on behalf of NerdWallet between December 14-18, 2023 among 2,061 U.S. adults ages 18 and older, of whom 1,366 owned a dog or cat. (pet owners). The sampling precision of the Harris Online Poll is measured using Bayesian confidence intervals. In this study, the accuracy of the sample data is within +/- 2.7 percentage points using a 95% confidence level. For complete research methodology, including weighting variables and subgroup sample sizes, please contact press@nerdwallet.com.
