Blog

As a cat owner, ensuring your feline friend receives the best care possible is a top priority. One way to prepare for unexpected veterinary expenses is by investing in pet insurance. However, with numerous options available, choosing the right policy for your cat can feel overwhelming. This guide will help you navigate the key factors to consider when evaluating pet insurance for your beloved pet.

1. Understanding Pet Insurance Coverage

Pet insurance policies vary widely, but they generally fall into three main categories:

• Accident-Only Coverage: Covers injuries resulting from accidents, such as broken bones or ingestion of foreign objects.

• Accident and Illness Coverage: Includes coverage for accidents as well as illnesses like infections, cancer, and chronic conditions.

• Comprehensive or Wellness Coverage: Covers accidents, illnesses, and preventive care such as vaccinations, dental cleanings, and routine check-ups.

Consider your cat’s age, breed, and overall health when deciding on the appropriate level of coverage.

Ben's Guidance:

Pet insurance is generally very different than human health insurance so you need to understand this if you decide to move forward with a policy. It typically is ran on a reimbursement model. Most pet insurance companies require you to pay the vet in-full upfront and then file a claim for reimbursement. 

2. Evaluating Cost vs. Value

The cost of pet insurance depends on various factors, including coverage type, deductible, reimbursement rate, and the insurer’s pricing model. Here are some cost-related elements to assess:

• Monthly Premiums: Higher coverage levels usually come with higher monthly costs.

• Deductibles: The amount you pay out-of-pocket before insurance kicks in. Lower deductibles mean higher premiums, while higher deductibles lower premiums.

• Reimbursement Rate: Typically ranges from 70% to 90% of covered expenses.

• Annual or Lifetime Limits: Some policies impose annual caps and some have lifetime caps.

Weigh the cost against the potential savings on veterinary expenses to determine if a policy offers good value.

Ben's Guidance:

Let's start with the Wellness coverage. This is generally an add-on. I found this coverage to be very underwhelming. I ran a quote for my 6-year-old Siamese cat and the cost for this coverage was $9.35/m or $112.20/yr. It covered 1 wellness exam (capped at $50/yr), 3 vaccines (capped at $75/yr.), parasite test, heartworm test and one blood test. I really don't see a material benefit to adding this coverage. I believe most people would be better off just saving that $9.35 into their emergency fund.

Base pet coverage is what I believe most people should consider for their situation. Keep in mind, this coverage isn't for preventative; it is for serious situations when you need x-rays, MRI's, surgery,etc. It is really intended for situations where your vet bill is very high. The quote I received for my cat was $24.51/m. However, premiums go up over time, and the older your cat, the more expensive the insurance. It is very possible that you will pay more in premiums over time than you receive in benefits. Peace of mind may be worth it though.

3. Examining Exclusions and Waiting Periods

Insurance providers set specific exclusions and waiting periods for coverage. Common exclusions include:

• Pre-existing conditions

• Elective procedures (such as declawing)

• Breeding-related expenses

Additionally, most policies enforce waiting periods before coverage begins—typically 14 days for illnesses and 48 hours for accidents. 

Ben's Guidance:

After reviewing several pet insurers online, there were mixed reviews on the claims process. Some claims were denied due to technicalities, so it's important to carefully read and understand your policy to avoid any surprises.

4. Checking for Customization and Flexibility

Some insurers allow you to tailor policies based on your cat’s needs. Look for providers that offer:

• Adjustable deductibles and reimbursement rates

• Add-on options for wellness coverage

• Multi-pet discounts if you have more than one cat

Having the flexibility to customize your policy ensures you get the best protection for your specific situation.

5. Reading Customer Reviews and Ratings

Researching customer reviews and third-party ratings can provide insights into an insurer’s reputation. Look for feedback on:

• Claim approval speed and ease of reimbursement

• Customer service responsiveness

• Overall satisfaction with coverage

Reliable sources include independent review websites, Better Business Bureau (BBB) ratings, and pet owner forums.

6. Considering Your Cat’s Specific Needs

Each cat has unique health requirements based on age, breed, and lifestyle. For example:

• Senior Cats: More prone to chronic illnesses, requiring comprehensive coverage.

• Purebred Cats: Some breeds have hereditary conditions that may need special coverage.

• Outdoor Cats: Higher risk of injuries, making accident coverage a priority.

Assessing these factors can help you select a policy that aligns with your cat’s health profile.

7. Comparing Top Pet Insurance Providers

Once you’ve identified key criteria, compare multiple insurers. Consider factors such as coverage options, pricing, exclusions, and customer feedback. Many providers offer online quotes, making it easier to compare costs.

Ben's Guidance:

Two Pet Insurance websites that I found helpful were Lemonade and FIGO. I noticed that if you go through Costco, FIGO offers a discount. I am not sponsored by these insurance companies and I am not making recommendations to go with them. I simply found their online quote system very easy to use and educational. It's important to do your own due diligence.

Final Thoughts

Choosing the right pet insurance for your cat requires careful evaluation of coverage options, costs, exclusions, and customer experiences. By taking the time to research and compare policies, you may find a plan that provides peace of mind and ensures your furry companion receives the best care possible.

However, pet insurance isn't for everyone. If you have a large emergency fund, you can still provide the best care for your cat and you may come out ahead financially by skipping the insurance. 

I know two people who bought pet insurance when their cats were young and it definitely helped pay for some very expensive veterinary bills.

In my personal situation, my 13-year-old cat had minimal veterinary bills until he was diagnosed with cancer at age 12. We've spent a small fortune in treatment but luckily we had an emergency fund and the treatment worked. It would have been nice to have pet insurance but we would have to estimate the cost of premiums over 12 years to see if we came out ahead financially.

If you need help evaluating your options and want guidance from a CERTIFIED FINANCIAL PLANNER™, schedule a free consultation with us. We are based in New Braunfels, TX but serve clients virtually, nationwide.

Important Disclosure: Nothing in this article should be considered insurance advice. Consult your insurance agent regarding your specific situation.