The average cost of pet insurance for a dog is $300 per year for $5,000 annual coverage and $420 per year for unlimited coverage.according to a Forbes Advisor analysis of pet insurance costs:
- Pet insurance with annual coverage of $5,000 costs an average of $25 per month for a dog or puppy.
- Pet insurance with unlimited annual coverage costs an average of $35 per month for a puppy and $38 for a dog.
Among dog owners who do not have pet insurance and are unlikely to purchase pet insurance in the next three months, 42% said the main reason was that they thought that it was too expensive, according to a Forbes Advisor poll.
What’s the biggest reason you’re unlikely to buy pet insurance in the next three months?
Yet 89% of dog owners believe the cost of pet insurance is higher than it actually is. Only 11% of dog owners correctly estimated an average cost of less than $50 per month. And 76% of dog owners overestimate the cost of pet insurance by at least three times the average price, our survey found.
How much would you estimate pet insurance costs per month for a 3 month old puppy, for $5,000 of annual coverage?
Pet insurance plans typically offer a choice of maximum annual coverage amounts, such as $5,000, but some plans offer unlimited annual coverage. This financial safety net can help dog owners reduce the potential cost of a dog.
How Pet Insurance Costs Are Determined
The type of pet is only one factor in the cost of pet insurance. For example, cats are generally cheaper to insure than dogs, and birds, ferrets, rabbits and reptiles are cheaper to insure than cats.
Here are some common factors that determine the cost of pet insurance:
- pet breed. Some breeds are predisposed to diseases and hereditary problems, which often means more visits to the vet and higher medical costs.
- Animal’s age. Older pets are more expensive to insure than younger pets. We’ve found that the best prices are after a pet’s first birthday until around age six. As the animal ages, your pet insurance premiums may increase when you renew the policy.
- Sex of the animal. Insurers have found that male pets generally have a higher number of claims than females, so some are using gender in underwriting. According to the National Association of Insurance Commissioners, female pets cost about 5% less than males for pet insurance.
- Your location. Veterinary costs vary by location, so pet insurance plan costs reflect that.
- Annual maximum, deductible and level of reimbursement. These are the three main variables that determine your reimbursement level when you have a claim. You will pay more if you choose a high annual maximum, a low deductible and a high reimbursement level. For example, a plan with unlimited annual coverage, a low deductible, and a reimbursement level of 90% would be the most expensive each month because it has the potential to pay significantly more.
Fears of big vet bills
Just over half (52%) of dog owners say they are very or somewhat concerned about their ability to pay an unexpected vet bill in the next three months.
How concerned are you about your ability to pay an unexpected vet bill over the next three months?
Pet insurance is a good way to help offset expensive veterinary bills for issues such as ACL tears, fractures, cancer, heart disease, swallowed objects, and common illnesses, such as ear infections and digestive problems.
Majority say vet bill of $2,000 or less is ‘unaffordable’
According to a Forbes Advisor analysis of the cost of veterinary visits, an unexpected accident or illness such as a broken bone, cancer, torn knee ligament or toxic ingestion can cost thousands of dollars in veterinary bills. Most dog owners (79%) consider various vet bill amounts of $2,000 or less to be “unaffordable.”
Dog owners without pet insurance are vulnerable to the prospect of running up debt to pay a surprise vet bill.
How much money would an unexpected vet bill cost you to consider it “unaffordable”?
Veterinary expenses among discounts for dog owners on a tight budget
Dog owners on a tight budget may face some tough financial decisions when it comes to their puppies. While 51% of dog owners say they would cut back on items such as dog treats, outfits and toys, some dog owners say they would cut back on veterinary spending to save money.
A quarter (25%) of dog owners say they would not pay for their dogs’ surgery (elective or emergency) and 19% say they would cut back on veterinary exams. Vaccinations (6%) and medications (4%) were also on the chopping block.
What dog-related expenses would you cut if your budget was tight? (Select up to three)
Pet insurance can help cover costs such as surgeries and medications. Plus, you can usually add a wellness plan to cover the cost of routine vet exams and vaccinations.
Many dog owners are unlikely to buy pet insurance in the next three months
Despite fears of big vet bills, (45%) of dog owners say they are unlikely to purchase pet insurance in the next three months.
Yet there is also a slight increase in dog owners’ interest in pet insurance. Just over a quarter (27%) of dog owners say they are likely to buy pet insurance in the next three months. That’s an increase of 3 percentage points from last month, when 24% of dog owners said they were likely to purchase pet insurance.
How likely or unlikely is it that you will buy a new pet insurance policy in the next three months?
Nearly two-thirds (63%) of pet owners said they would struggle to pay a surprise vet bill amid inflation, according to a Forbes Advisor survey of pet costs and inflation of company. More than a quarter of pet owners (28%) said a veterinary bill of $499 or less would put them in debt, while a bill of $999 or less would result in 42% of debt.
Even though many pet owners fear a hefty vet bill could cause financial havoc, more than three-quarters (79%) of pet owners said they don’t have pet insurance, a survey finds Forbes Advisor. Many pet owners are unlikely to purchase pet insurance due to inflation:
- Nearly a third (30%) of survey respondents said they were much less likely or somewhat less likely to purchase pet insurance amid inflation.
- And 22% said they were much more likely or somewhat more likely to buy pet insurance amid inflation.