Pet insurance isn't legally required in the U.S. However, it could save you a hefty sum in medical bills for your furry friend. Unless you're confident that you can pay for an emergency procedure out of pocket, pet insurance may be a good idea to help you cover the cost — and avoid the heartache of having to choose between your finances and your pet's health. Especially if you own a pet whose breed is at a higher risk of getting sick, pet insurance could be a smart financial move.
Do You Really Need Pet Insurance?
Updated: October 18, 2024
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Do You Really Need Pet Insurance?
In a literal sense, pet insurance isn’t necessary. It’s not required by law, and vets don’t require you to have it to treat your pet. However, pet insurance is often worth it for pet owners who can’t afford to self-insure. In other words, if you cannot cover an unexpected medical expense related to your pet, then pet insurance could be a smart financial move. When deciding whether or not to purchase pet insurance, you should balance the cost of common veterinary procedures with the cost of a pet insurance policy.
Average Costs of Common Veterinary Procedures
Procedure | Average Cost (Dogs & Cats) | Common For: |
|---|---|---|
ACL Repair | $2,250 | Dogs, cats, rabbits |
Foreign Object Removal Surgery | $2,000 | Dogs, cats, rabbits |
Cataract Surgery | $2,000 | Dogs, cats, rabbits, birds, rodents |
Hip Dysplasia | $1,750 | Dogs, cats |
Imagine your pet tears their ACL, and you’re looking at a $2,250 surgery. If that thought makes your heart race, a pet insurance policy could help you to avoid the stress of a hefty, unexpected vet bill. Rather than paying a large lump sum to your vet if your pet gets sick, with pet insurance, you’ll pay a more modest sum each month, and your insurance policy will help cover more expensive vet bills.
While pet insurance is most common for dogs and cats, even rabbits, birds and rodents can require emergency veterinary procedures. Pet insurance is an option for all types of pets.
INSURING PUPPIES & KITTENS: IS IT WORTH IT?
Even if you have a young puppy or kitten, you may still want to consider insurance. While puppies and kittens have a lower risk of medical problems than older animals, pet insurance is generally much cheaper for younger animals, and you can ensure coverage while they’re still young and likely have no pre-existing conditions.
Reasons Why You Should Consider Purchasing Pet Insurance
One of the most important reasons to purchase pet insurance is if you’re not confident in your ability to self-insure against emergency procedures with your savings. Since vet bills can often run into thousands of dollars, a pet insurance policy can help protect you from financial risk while ensuring that your pet has the coverage they need.
Not only does pet insurance cover emergency medical expenses, but it also often covers a variety of preventive care treatments. For example, many pet insurance policies cover yearly checkups and exams. So it is a good way to save money on pet expenses in both the short and long run.
You can’t afford emergency pet care
If you think you might not be able to afford an emergency medical expense for your pet, then pet insurance is a good idea.
Your pet is an at-risk breed
Some breeds have a higher risk of medical complications, which means that pet insurance is a smart choice to cut down on vet bills.
Your pet’s health isn’t the best
If you have a pet with particular health issues or illnesses, it may require additional veterinary care. Pet insurance can help you afford additional vet visits and treatments.
You’re on a budget
While adding an extra expense to your monthly budget may seem unlikely to save you money in the long run, paying for pet insurance can help you to avoid major, unexpected vet costs.
MONEYGEEK EXPERT TIP
Whether or not to purchase pet insurance is ultimately a personal choice. But when looking at it solely from a financial perspective, it’s clear that, in many instances, pet insurance is a savvy money move. Vet visits can get expensive — fast. And pet insurance can help to significantly mitigate the costs. Plus, the best pet insurance companies also offer a variety of covered preventive treatments, like annual checkups.
How Much Pet Insurance Do You Need?
Like human health insurance, pet insurance comes with coverage limits, deductibles and reimbursement percentages that you’ll need to factor into your calculations when deciding whether this type of insurance is worth the cost. How much coverage you need ultimately depends on your pet’s type, breed and age, as well as your capacity to pay for vet procedures out of pocket. The more coverage you can comfortably afford, the better off you’ll be in the event of an emergency.
Consider These Factors
Pet type
Different animals have different medical needs. For example, dogs generally have shorter life spans and more ailments during life than cats. As a result, dogs might need more coverage.
Breed
Some breeds suffer from more medical issues than others. For example, pugs might have more difficulty breathing and respiratory issues, while German shepherds might have difficulty with their hips.
Age
Older pets who are more susceptible to illness will need additional coverage, and insurance is likely to be more expensive for these pets.
Your ability to self-insure
When purchasing pet insurance for your furry friend, you should take stock of your finances to determine how much you would be able to pay out of pocket to treat your pet. If your savings are low, it makes sense to opt for additional coverage.
Is Pet Insurance a Legal Requirement?
There are no laws in the United States requiring pet insurance.
Some countries, like Germany and Sweden, require pet owners to have liability insurance. But in most cases, whether or not to purchase insurance for your pet is up to you. While purchasing pet insurance is a personal choice, it’s often a smart financial decision. Pet insurance can help to save you money in the long run. Even if your pet is very healthy, medical issues are often inevitable, whether they have a minor accident or simply grow older and require more care.
Frequently Asked Questions
Do you still have questions about pet insurance? Just like human health insurance, pet insurance can be a little confusing to wade through if you’re not familiar with common insurance terminology. We’ll answer some of the most frequently asked questions below.
Should I purchase pet insurance?
Whether or not you purchase pet insurance is ultimately up to you. You’re not required, either by the government or by your vet, to purchase pet insurance. That said, pet insurance is often a good idea since it can save you money on vet bills in the long run. Pet insurance can also make things easier by helping to take financial considerations out of the equation when deciding how best to treat your pet.
Why do I need pet insurance?
There are several reasons to purchase pet insurance. First and foremost, pet insurance can help you better afford emergency medical expenses for your pet. For example, if your pet is injured and needs surgery or becomes ill, pet insurance could help you cover the costs. While the exact details of how much pet insurance will save you depend on your policy, purchasing pet insurance will often save you money in the long run. Plus, pet insurance can help to mitigate the stress of paying for an expensive procedure out of pocket.
Is pet insurance a legal requirement?
Pet insurance is not legally required. While you don’t, strictly speaking, need to purchase pet insurance, it’s still often recommended. Even if purchasing a pet insurance policy puts a dent in your monthly budget, it could still save you money in the event that you need to take your pet to the vet. Plus, you may also get certain items, such as preventative vet visits, covered for free.
How much pet insurance do I need?
How much pet insurance you need depends on a variety of factors, including your budget, your pet’s type, breed, and age, and whether or not they have any existing health conditions. In general, the more coverage you purchase, the better off you’ll be if you have to file a claim. But if you have a young, healthy pet with few health issues, you may want to opt for a lower amount of coverage.
About Mark Fitzpatrick
Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.
Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.