As per the 2023-2024 APPA national pet owners survey, 86.9 million, or 66% of American households, were reported to have a pet. Another study found that the number of pets in American households makes the country one of the world’s largest pet-owning countries. However, having pets comes with a lot of responsibility and expenditure.
In 2022, the total size of the pet industry was around $136.8 billion. This cost can be broken down into categories like food, treats, supplies, medicine, vet care, and other necessary and add-on services such as pet grooming and walking. Insurance is now a growing part of the “pet economy”. According to a North American Pet Health Insurance Association report, the pet insurance segment exceeded $2.83 billion by the end of 2021, which only shows its future promise, especially when seeing an increase in pet owners across the country.
Why Do People Need Pet Insurance in the First Place?
The reason people need insurance is because healthcare has become expensive not only for humans but also for pets. According to the Insurance Information Institute, any accident or illness in a dog can cost up to $50 per month, while for cats, this cost can be around $40 per month. In the worst-case scenario, if the problems are severe, this amount can skyrocket to a couple of thousand dollars, which might not be an easily available amount for everyone.
In addition to the basic healthcare requirement which is needed when a pet has met with an accident or has detected a chronic disease, there are a variety of other scenarios as well in which pet insurance is required, such as:
- If your pet causes damage to someone else’s property, the owner may sue you for compensation.
- If your pet bites someone while on the road or when someone comes to visit you, the attacked person may file a lawsuit against you.
Such incidents can be taken care of with the help of the appropriate insurance policies, depending on a variety of factors.
The Options and Benefits of Taking Pet Insurance
To choose the best pet insurance plan, you must first understand what types of insurance policies are available and under what conditions each can be useful. Here is a list of all pet insurance policies that are ideal for protecting you from financial losses.
Pet Health Insurance
An ideal policy to cover all medical expenses, including tests, medicine, procedures, etc., required for your pet. This can prove an excellent way to obtain the necessary coverage for any medical emergency. Accidental treatment, chemotherapy, surgery, diagnostic tests, medications, care therapies, chronic diseases, allergies, and so on are all covered under a pet health insurance policy. However, these types of insurance policies do not cover non-medical treatments such as pregnancy, dental care, dietary supplements, etc.
Pets of only a certain age are eligible to enroll in such insurance programs. In general, a younger pet who has not been diagnosed with a genetic disease is allowed to have this type of policy. If pets with health conditions require a health insurance policy, other options may be available, depending on the pet’s medical history. The insurance premium ranges from $20 to $50, depending on your pet’s age, breed, and current condition. Premium rates rise slightly for rare species, older or larger pets.
Umbrella Insurance or Liability Insurance
When your pet causes harm to others, you will require a separate policy to protect yourself from financial ruin. Umbrella insurance or animal liability insurance policy can be purchased in addition to other homeowner or liability insurance policies to cover the damage done specifically by your pet. It is an excellent way to protect yourself if your pet has caused damage to property or injured someone by causing them to fall or by biting them unexpectedly. With this type of insurance, you can gain financial security and peace of mind.
The cost of this insurance is determined by several factors, including whether your pet has a history of causing damage or whether your pet has previously bitten or harmed someone. These factors determine how high or low the premiums should be. Depending on your pet’s weight, breed, and history, such policies can cost $400 or more on average.
In a Nutshell
When purchasing a pet insurance policy, make certain that your insurance provider offers a policy covering all types of pets. Many insurance companies, for example, only cover cats and dogs and do not cover exotic animals. As a result, before purchasing any insurance policy, it is critical to thoroughly understand the terms and conditions.
Gonzalez Insurance provides unparalleled support and guidance in determining which policy is best for you and your pet. This is accomplished by providing a customized quote estimated after carefully assessing your pet’s medical history, past records, and other pertinent information. To learn more about pet insurance policies, contact our experts today.