8 Factors that Impact Pet Insurance Costs

While there are many factors that will affect the cost of a particular pet’s insurance policy, below is a discussion of 8 common factors which may affect cost:

Coverage Type

There are four main types of pet insurance coverage types: comprehensive, accident and illness, accident-only, and routine wellness. While the terms and conditions of each individual policy will vary, the following is a general summary of each type:

Comprehensive pet insurance provides more extensive coverage and is generally more expensive than the other pet insurance coverage types. It usually covers both accidents and illnesses, including emergency veterinary care, surgeries, hospitalization, diagnostic tests, medications, and treatments. Plus, comprehensive coverage may also cover hereditary and congenital conditions, specialist care, alternative therapies, and behavioral treatments, depending on the policy.

Accident and Illness Coverage offers financial protection against costs associated with your pe’s accidental injuries and illnesses. It typically includes coverage for veterinary expenses related to accidents, such as broken bones or lacerations, as well as illnesses like infections, cancer, or gastrointestinal issues. This type of coverage often also includes diagnostic tests, medications, surgeries, hospitalization, and ongoing treatments, depending on the policy.

Accident-Only Coverage is a more limited type of pet insurance coverage that typically covers only veterinary expenses resulting from your pet’s accidental injuries. It does not cover illnesses or other medical conditions. It is usually less expensive than comprehensive or accident and illness coverage and can be more affordable for pet owners primarily concerned about unexpected accidents, such as injuries from car accidents, poisoning, or swallowing foreign objects.

Routine Wellness Coverage, also known as preventive or wellness care coverage, is a standalone plan or an optional add-on to a pet insurance policy. It typically covers your pet’s routine veterinary care and preventive services, including vaccinations, annual check-ups, flea and tick control, spaying/neutering, dental cleanings, and may cover prescription medications for preventive purposes. This coverage is designed to help offset the costs of regular preventive care and can be beneficial for pet owners who want to proactively manage their pet's health.

Breed

The breed of your pet can impact the cost of pet insurance. Some purebred breeds may be prone to specific hereditary or genetic health conditions, which may increase the likelihood of veterinary visits. Insurance companies may consider these breed-specific risks when calculating premiums. Breeds with known breed-related health issues or higher veterinary costs may result in higher insurance premiums compared to breeds with traditionally fewer health concerns.

Age

The age of your pet is another significant factor affecting the cost of pet insurance. Generally, younger pets tend to have lower insurance premiums compared to older pets. Younger animals are often perceived as healthier as compared to older pets which may have health concerns. As pets age, they may develop age-related health conditions or require more frequent veterinary care, typically resulting in higher insurance premiums.

Location

The location where you and your pet reside can influence the cost of pet insurance, too. Veterinary costs and healthcare expenses can vary across different regions or cities. In areas with a higher cost of living, like urban areas, veterinary services may be more expensive, which can be reflected in insurance premiums.

Insurance Company

One of the biggest factors in pet insurance cost is the insurance company that issues the pet insurance policy. Different insurance companies have varying pricing structures, underwriting criteria, and coverage options. Premiums can vary between providers based on their claims experience, administrative costs, and profit margins. It's important to research and compare multiple insurance companies to find the coverage that suits your needs and budget.

Deductible

The deductible is the amount you must pay out-of-pocket before the insurance coverage starts. Higher deductibles typically result in lower insurance premiums, as you are assuming more of the financial responsibility for veterinary expenses. If you choose a lower deductible, the insurance provider will be responsible for a larger portion of the costs, typically resulting in higher premiums. You will want to strike a careful balance between the deductible amount and the affordability of monthly premiums when selecting a policy.

Reimbursement Level

Most of the time, pet insurance is reimbursement-based, meaning owners will be required to pay the vet upfront and then file a claim with their insurance provider for reimbursement. After the payment of any applicable deductible, the insurance provider’s reimbursement obligation kicks in. Depending on the terms of the particular policy, the reimbursement amount may cover a certain percentage (70%, 80%, or 90%, for example) of covered medical expenses. Generally, the higher your reimbursement level is, the more your monthly premium will cost, too.

Discounts

Insurance companies may offer discounts that can help reduce the cost of pet insurance. Common discounts include multi-pet discounts for insuring multiple pets, discounts for enrolling pets at a young age, or discounts for paying the premium annually instead of monthly. Some carriers may also offer loyalty discounts for renewing policies or discounts for specific professional affiliations.