How to Choose Pet Insurance That's Right for You
How Do You Choose the Right Pet Insurance?
Choosing the right pet insurance can involve comparing several key factors: coverage type, deductible amount, reimbursement rate, annual limit, and provider reputation. According to NAPHIA’s Pet Insurance Buying Guide², the best approach is to make a list of what’s most important to you and get quotes from multiple reputable providers to compare options.
The AVMA³ recommends verifying that a provider allows you to choose your own veterinarian, understanding how premiums may increase with your pet’s age, and reading the policy details carefully before enrolling.
What Types of Pet Insurance Coverage Are Available?
Pet insurance typically comes in three main types, each designed for different needs:
Accident and Illness Coverage
Accident and illness plans help cover a wide range of veterinary expenses, including unexpected injuries, illnesses, hereditary conditions, and chronic diseases. According to NAPHIA¹, these plans average $62.44 per month for dogs and $32.21 per month for cats.
Spot Pet Insurance accident and illness plans can help cover eligible expenses for conditions like:
Broken bones and lacerations
Cancer treatment
Digestive issues
Infections
Hereditary and congenital conditions
Accident-Only Coverage
Accident-only plans are considered more affordable, averaging $16.10 per month for dogs and $9.17 per month for cats according to NAPHIA¹. These plans help cover treatment for injuries like broken bones, swallowed objects, and traumatic incidents—but don’t cover illnesses.
Preventive Care Coverage
Preventive care or wellness coverage is typically an optional add-on for an additional cost that helps cover routine care like annual exams, vaccinations, dental cleanings, and flea and tick prevention. This coverage can help spread the cost of routine care throughout the year.^
What Should You Look for in Pet Insurance Deductibles?
Your deductible is the amount you pay before reimbursement begins. According to NAPHIA², most pet insurance deductibles range from $100 to $1,000.
Deductible Level | Monthly Premium Impact | Best For
Lower ($100-$250) | Usually higher premiums | Pet parents who prefer a lower deductible amount before insurance reimbursement begins
Mid-range ($250-$500) | Moderate premiums | Those seeking a balance between premium and deductible levels
Higher ($500-$1,000) | Usually lower premiums | Pet parents comfortable meeting a higher deductible before reimbursement begins
Annual vs. Per-Incident Deductibles
Annual deductibles reset once per policy year—any covered treatment can apply toward meeting your deductible
Per-incident deductibles apply separately to each new condition
Spot Pet Insurance plans use annual deductibles with options ranging from $100 to $1,000, giving you flexibility to choose what fits your budget.
How Do Reimbursement Rates Work?
Your reimbursement rate is the percentage of eligible veterinary costs your plan reimburses after you meet your deductible. According to NAPHIA², the most common reimbursement rate is 80%, though many providers offer 70% and 90% options.
Example: With a $500 annual deductible (already met) and 80% reimbursement rate:
Eligible vet bill: $2,000
Your plan reimburses: $1,600 (80% of $2,000)
You pay: $400
Spot Pet Insurance plans offer reimbursement rates of 70%, 80%, or 90% of eligible costs for covered conditions. Higher reimbursement rates usually mean higher monthly premiums, so consider which balance works best for your situation.
What Are Annual Limits and Why Do They Matter?
An annual limit caps the total amount your plan will reimburse in a policy year. Once you reach your limit, any additional veterinary costs won’t be eligible for reimbursement until your policy renews.
When comparing annual limits, consider:
Your pet's potential health risks: Some breeds are prone to conditions requiring expensive treatment
Your financial comfort level: Higher limits provide more protection but usually cost more
Treatment costs in your area: Urban veterinary costs often exceed rural rates
Spot Pet Insurance plans offer many annual limit choices, including an unlimited option, so you can select the coverage level that fits your needs.
What Other Factors Should You Consider?
Waiting Periods
All pet insurance policies include waiting periods—typically 10-30 days—before coverage begins. According to NAPHIA², waiting periods may vary by coverage type:
Accident coverage waiting periods are often shorter
Illness coverage waiting periods are typically longer
Some conditions (like cruciate ligament issues) may have extended waiting periods
Pre-Existing Conditions
Pre-existing conditions—any illness or injury that occurred or showed symptoms before coverage began—are typically not covered by pet insurance. This is true even when switching providers.
Spot Pet Insurance offers one exception: cured and curable pre-existing conditions may become eligible for coverage after 180 days without symptoms or treatment.
Breed and Age Considerations
Your pet's breed and age affect premium costs:
Breed: Some breeds are predisposed to certain health conditions, which can affect pricing
Age: Premiums usually increase as pets age due to higher health risks
The AVMA notes³ that some providers may refuse coverage for certain breeds or have age limits. Spot Pet Insurance plans have no breed exclusions and no upper age limits—dogs and cats 8 weeks and older can enroll.
Provider Reputation and Customer Service
Before choosing a provider, consider:
Customer reviews and ratings
Claims processing speed and ease
Quality of customer support
Company financial stability
How Much Does Pet Insurance Cost?
Pet insurance costs vary based on your pet's species, breed, age, location, and the coverage options you select.
According to NAPHIA¹, average monthly premiums in the U.S. are:
Coverage Type
Accident & Illness
Dogs: $62.44/month
Cats: $32.21/month
Accident-Only
Dogs: $16.10/month
Cats: $9.17/month
Factors that affect your premium include:
Pet's age: Younger pets usually have lower premiums
Breed: Some breeds with higher health risks may have higher premiums
Location: Veterinary costs vary by region
Coverage selections: Higher reimbursement rates, lower deductibles, and higher annual limits usually mean higher premiums
What Does Spot Pet Insurance Offer?
Spot Pet Insurance plans are designed to provide flexible coverage options that fit different needs and budgets:
Reimbursement rates: 70%, 80%, or 90% of eligible costs
Annual deductibles: Options from $100 to $1,000
Annual limits: Many choices including an unlimited option
No breed exclusions: All breeds welcome
No upper age limits: Pets 8 weeks and older can enroll
Any licensed vet: Visit any veterinarian in the U.S. or Canada
Multi-pet discount: ~10% discount on all pets enrolled after the first
Spot Pet Insurance plans can help cover eligible costs for accidents, illnesses, behavioral conditions, hereditary conditions, and more. Optional preventive care coverage is available for an additional cost.
The Bottom Line: How to Choose the Best Pet Insurance for Your Pet
The best pet insurance depends on your individual situation. To find the right plan:
Assess your priorities: Decide what matters most—lower premiums, higher coverage limits, or specific coverage types
Consider your pet’s needs: Factor in breed, age, and any known health concerns
Compare quotes: Get quotes from multiple providers to understand your options
Read the policy details: Understand waiting periods, exclusions, and how claims are processed
Check provider reputation: Read reviews and verify the company’s track record
Sources
North American Pet Health Insurance Association. “Average Premiums - State of the Industry Report 2024.” NAPHIA, 2024. https://naphia.org/industry-data/section-3-average-premiums/
North American Pet Health Insurance Association. “NAPHIA’s Pet Insurance Buying Guide.” NAPHIA, 2024. https://naphia.org/find-pet-insurance/naphias-pet-insurance-buying-guide/
American Veterinary Medical Association. “Do You Need Pet Insurance?” AVMA, 2024. https://www.avma.org/resources-tools/pet-owners/petcare/do-you-need-pet-insurance
~10% multi-pet discount available on all pets enrolled after the first.
^Exam fees for wellness or annual exams are not covered unless you have purchased the optional preventive care coverage.