How much does pet insurance cost?

As mentioned above, pet insurance typically uses a reimbursement process. You bring your dog to the vet, for instance, for a health issue – you pay the bill first, then your pet insurance company will reimburse you up to your coverage limits. When you purchase a policy, you can choose what those limits are.

Pet insurance can help cover a range of unexpected ailments or injuries – cancer treatment, surgery, lab work, medications, recurring allergies or other illnesses and more.

The following factors may affect the premium you pay for pet insurance:.

• The type of pet you're insuring
• The pet's breed and associated medical conditions
• Veterinary costs in your area
• The coverages you select on your pet insurance policy
• The deductible on your pet insurance policy

Pet's age and breed

Just like with humans, as pets get older, they're more likely to develop health issues or conditions, which can increase the risk for insurance companies. Because of this higher risk, premiums tend to be higher for older pets. Younger pets generally have lower premiums because they're less likely to have health problems.

Secondly, the breed of your pet also influences insurance costs. Some breeds are prone to certain health issues or genetic conditions, according to CBS News. For example, Newfoundlands are large dogs prone to kidney stones and heart issues and may be more expensive to insure, as a result. Conversely, English Springer Spaniels are small and tend to live long healthy lives.

Coverage type and limits

Coverage type is like the package deal you choose for your pet's insurance, and limits are the maximum amounts the insurance will pay for different vet visits and medical treatments.

For instance, a standard plan may cover the issues mentioned earlier – accidental injuries, illnesses and breed-specific conditions. If you purchase additional coverage for routine care or preventative surgeries, your premium may be higher as a result.

You can typically set coverage limits, too. That’s how much your insurance will reimburse you when you file a claim. The higher limits, the higher your rate – but it also means the more you’re covered.

Location

Like other types of insurance, where you live can have an impact on pet insurance rates, according to Forbes. Urban areas tend to have higher vet costs than other areas, and higher premiums as a result.

If a state or city tends to have higher vet costs in general, adds CBS News, then you’re likely to pay a bit more for pet insurance.

Deductibles and copayments

Deductibles and copayments are key components of pet insurance policies, and they could affect both the cost of the policy and how much you pay out-of-pocket for your pet's healthcare expenses.

A deductible is what you pay before coverage pays for the rest. Mentioned earlier, a higher deductible typically means a lower premium.

A copayment is the percentage of the covered expenses that you pay after you’ve met your deductible. Like deductibles, higher copays typically mean lower premiums.

Read on to learn more about these factors and how they may affect the cost of a pet insurance policy.

The type of pet/species you have does affect the price you'll pay for pet insurance, according to the North American Pet Health Insurance Association (NAPHIA). Other factors they state can impact the cost of pet insurance coverage:

• Specific pet breeds are known to develop certain medical conditions
• Age of the pet
• Area of residence of the pet owner/local cost of common treatments

Most pet insurance policies are written for dogs, though some insurers offer policies for cats, too. Outside of plans for dogs and cats, some pet insurance providers also offer policies that help protect other types of pets, such as birds and reptiles.

Specific pet breeds are known to develop certain medical conditions, such as hip dysplasia, says the Insurance Information Institute (III). Your insurer may take this information into account when determining the cost of a pet insurance policy. And like humans, pets tend to require more medical care as they age, so keep in mind that age can also influence your policy's premium, says the III.

Veterinary care costs and insurance rates can vary throughout the country. This means that where pet owners live may also be considered in determining the price of your pet's policy.

Pet insurance for dogs is typically more expensive than for cats, according to U.S. News. The cost, however, depends on those previously mentioned factors, including but not limited to:

• Your pup’s breed, age and health
• Where you live
• Your chosen coverages and deductibles

For these reasons, the average insurance cost for dogs ranges widely – from about $25 to almost $280 a month, adds U.S. News. Ultimately, though, costs are dictated by your unique circumstances.

Mentioned above, insurance for cats typically costs less than dogs – just over $33, a month says U.S. News. The reason is, cats generally require less medical care on average than dogs, according to Money.com. Again, though, the cost of cat insurance depends on the same factors that affect premiums for dogs.

The average cost of veterinary care is about $60, according to Forbes. Type of care, however, ultimately determines the cost. Vaccinations, emergency visits for accidents or sudden ailments can run the gamut. Like the cost of pet insurance, veterinary care may vary widely, depending on where you live, the breed of your furry friend and more. Economic factors may influence the cost of care as well. That’s why, for many, having coverage for their pets can offer much peace of mind.

Pet insurance can be an invaluable way to help foot large bills in case something happens to your furry friend. While having a rainy-day fund is important, it may be good to supplement that with a financial safety net that can step in if the unforeseeable rears its ugly head and sets you back thousands of dollars.

Pet plans are also tailorable and an insurer can help you arrange the right coverages suitable for your dog or cat, as well as your wallet. That way, you’re paying for coverages you actually need as opposed to those you don’t.

The III reports that there are typically three tiers of pet insurance coverage available. The one you choose can impact how affordable your pet insurance is and what your plan offers. Typically, the policy will be more expensive as you choose more coverage. Here are the three types of coverage an insurer may offer for your pet:

• Basic coverage. This coverage is usually the least expensive and therefore provides the lowest reimbursement. It helps pay for medical care after certain accidents and injuries.
• Comprehensive coverage. In addition to accidents and illnesses, comprehensive coverage may help cover the cost of routine care, vet visits, spaying/neutering, prescriptions, X-rays and lab fees that may be needed.
• Pet wellness care. Pet wellness protection helps cover the cost of preventive care (such as routine wellness exam fees, heartworm protection and vaccines).

When choosing coverage for your pet, keep in mind that any pre-existing conditions your pet may have usually aren't covered, says the III. This may include conditions that arise during the waiting period of new pet insurance policies.

When you purchase a pet insurance policy, you'll likely need to choose a deductible. Typically, a higher deductible will decrease your policy premium.

Regardless of the type of pet insurance plan you purchase, most policies also have a maximum amount that the insurer will pay out toward your pet's care each year — otherwise known as an annual limit. For example, say your pet insurance policy has a $250 annual premium, a $100 annual deductible and a $1,500 limit. This means you can expect to pay $250 up front to keep the policy in force for the year, and once you've paid $100 toward your pet's medical bills, the insurer will reimburse you for any covered costs up to $1,500 for the year. If your vet expenses exceed $1,500, you would have to pay the rest out of your own pocket.

Be sure to read the terms of your pet insurance policy carefully to understand what may or may not be covered.