Understanding Your Dog Insurance Policy

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We sign up for dog insurance because we want to be able to keep our pets safe when they need us the most. But finding the right pet insurance policy can be tricky, and it’s hard to know if your plan will actually be there for you when you need it.

We’ll walk you through dog insurance from nose to tail, so you know exactly what to look for, whether you’re signing up for a new policy or taking a second look at the one you already have.

There’s a lot to consider, but we’ll keep it easy. Or for an even easier review, check out or free policy review option – submit your dog insurance policy and we’ll let you know if you have the best one for your budget as well as give you a heads-up if there are any potentially dangerous gaps in coverage.

What Is Pet Insurance, Anyway?

Dog insurance is a type of pet health insurance policy. Like human health insurance, there’s a monthly premium that gets paid every month, and in exchange, you get access to a health benefit package. Your dog insurance benefits change depending on your insurance carrier and your plan, but they all provide a financial safety net if your dog has a medical emergency.

You might also see some pet insurance carriers advertising “puppy insurance.” It’s the same thing as dog insurance! They’re just trying to have clever marketing.

Who Needs Dog Insurance?

We recommend dog insurance for two reasons:

Financial support

No one wants to be in the position of choosing between their savings account and paying for their dog’s emergency surgery or cancer treatment. In the event of a major bill (or several in the same year), dog insurance helps pet parents have enough money to pay for critical vet care.

Peace of mind

We all hope our dogs stay healthy forever, but some of them are accident-prone, get sick easily, or will develop some life-long condition along the way. Signing up for pet insurance when our dog is young and healthy means that we can get financial help if they end up needing a lot of vet care later.

Even if you’re building up a “pet emergency fund” for your dog, we still recommend taking a look at signing up for dog insurance. Depending on what plan you get and how often you take your dog to the vet, you might end up saving money! (See our chart in “When is dog insurance worth it?” for more!)

Who Shouldn’t Get Dog Insurance?

Signing up for dog insurance means weighing the total costs of having that plan versus how much you’ll benefit from that plan, and not just for that first year but for over the lifetime of your pet.

Here are two reasons why dog insurance might not be the right answer for you:

Your dog has a pre-existing condition (or several). Dog insurance (usually) doesn’t cover pre-existing conditions, so even with a policy, you’d have to pay for those treatments on your own. Look for policies that allow for “curable pre-existing conditions,” or give your pet coverage for anything new that might crop up.
Your dog is elderly. Dog insurance policies get more expensive as your pet gets older (because they’re more likely to need expensive vet care), so signing up with a grandpa dog will be more expensive than signing up with a puppy. Double check if the higher premium is worth it to your peace of mind, or look at accident-only plans (versus accident & illness)

In both cases, a dog insurance plan can still help pay for anything new that happens to your pet, so we still recommend taking a look. Just be aware that your policy may not cover everything or might be more expensive.

What Does Pet Insurance Cover?

Choose Your Plan

Dog insurance companies offer three types of plans:

Accident-Only

which only provides coverage for diagnosis and treatment of accidents, like bite wounds, broken bones, and eating something they shouldn’t (like chocolate and tennis balls).

Accident & Illness

has coverage for accidents as well as treatments for major and minor illnesses, like diabetes, cancer, hyperthyroidism, and arthritis.

Wellness Plans

are add-ons packages that provide coverage for preventative healthcare like annual exams, vaccinations, and parasite prevention.

Why are there accident-only plans?

Accident-only plans are the lowest level of coverage, meant to step in only if your pet has been in an unexpected accident. They’re an excellent stop-gap tool; if your pet has an emergency, you’ll at least have some help at the emergency vet clinic instead of being totally out-of-pocket for care. Plus, because they don’t have coverage for illnesses, the monthly fee is less expensive than higher-tier plans.

Tailor Your Policy

Once you’ve chosen your plan type, you’ll be asked three questions to figure out your monthly premium (i.e. how much you’ll pay the dog insurance company every month to have coverage).

Here are two reasons why dog insurance might not be the right answer for you:

A deductible: how much you’ll have to pay out-of-pocket before the dog insurance starts kicking in. A higher deductible (e.g. $2,000 versus $500) means a cheaper premium.
The reimbursement rate: what percent of the vet bill gets paid by the pet insurance company. A higher reimbursement rate (e.g. 90% versus 60%) means a more expensive premium.
The maximum annual benefit: the total amount the pet insurance company will pay out each year. A higher benefit (e.g. $100,000 versus $5,000) means a more expensive premium.

Although it’s a lot to consider, this customization is one of the reasons we love dog insurance–you truly get to customize your coverage based on what you think is important and what your budget is.

Discounts and Benefits

Most dog insurance companies offer multi-pet discounts, so if you’re insuring multiple dogs (or a combination of dogs and cats), make sure to see what kind of discount you get.

Some companies also have special perks, whether having a special feature in what services they cover or partnering with other dog brands to get you discounts on food, toys, training and more

Dog Insurance In Action

Once you’ve signed up for a dog insurance plan, it works like this:

Visit any licensed veterinarian or vet clinic. Most dog insurance companies don’t have a network.
Pay the vet bill. There are a couple of dog insurance companies who pay the vet directly, but most of them work on reimbursement; you’ll pay the vet yourself and get reimbursed later.
Submit a claim. Send in a copy of the vet bill to your dog insurance carrier, usually through an online portal, an app, or via fax.
Get reimbursed. Once they review the bill and calculate what they owe you, you’ll receive money back, by direct deposit or check.

What Does Dog Insurance Cover?

What your policy covers changes depending on what plan you get (accident-only, accident and illness, and if you have a wellness plan) as well as the specifics of each pet insurance carrier.

Here are a few examples as to what dog insurance policies often cover:

Coverage examples*

Accident-Only

Treatments for:

Bite Wounds
Cuts
Broken bones
Fractured teeth
Toxic ingestions (grapes, chocolate, e.g.)
Swallowed objects (tennis balls, chew toys, string, e.g.)

Emergency diagnostic and treatments for accidents, such as:

Accident & Illness

← Everything in Accident-Only, plus:

Treatments for major and minor illnesses, such as:

Cancer
Allergies
Arthritis
Diabetes
Digestive Problems
Eye, Ear & Skin Infections
Hip Dysplasia
Hypothyroidism
Kennel Cough
Respiratory Infections
Urinary Tract Infections (UTIs)

Wellness Coverage

Annual Exam
Dental Cleanings
Deworming
Feline Leukemia Virus (FELV) screenings
Heartworm tests
Microchipping
Vaccinations
Spaying & Neutering

*These examples are commonly covered by these policies, but every plan and pet insurance carrier is different; check the specifics of any policy before signing up.

What Dog Insurance Doesn’t Cover

The two big things to know about are pre-existing conditions and waiting periods.

If your dog already has hip dysplasia, chronic ear infections, arthritis, diabetes, or any kind of chronic condition, illness, or injury–your pet insurance company probably won’t cover it. This includes any injury or illness that happens during a waiting period, i.e. the time between when you sign up for a plan and when it starts taking effect.

Companies know that one of the most common places people think about signing up for dog insurance is at the emergency vet clinic, so they all have waiting period requirements.

Make sure to check when:

Accident coverage begins, which can be within a couple days or a couple weeks after you sign up;
Illness coverage begins, which is usually about a month;
Wellness coverage begins, which can be immediately; and
Any specific-condition waiting period. Most dog insurers wait at least six months before they will offer coverage for new hip dysplasia and other orthopedic problems.

Additionally, each dog insurance plan will have specific exclusions.

Here are a few things that most pet insurance companies won’t cover:

Pre-existing conditions. If your pet already has a chronic condition, illness, or injury (whether sustained before or during the waiting period).
Bilateral conditions where your pet already has issues with one eye or one leg, and later develops a (related) problem on the other side.
Breed-specific exclusions. Some breeds of dogs and cats are more prone to certain (expensive) conditions, and pet insurers won’t cover treatment in these cases.
Elective procedures, like declawing, ear cropping, and tail docking.
Pregnancy and birth care.

Boarding and grooming.

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How Much Does Dog Insurance Cost?

As we mentioned earlier, there’s a lot that goes into calculating how much a dog pet insurance policy would cost.

Plan type: whether you’re opting for accident-only or accident and illness coverage; whether you’ve chosen to add a wellness plan package, or have attached an insurance rider.
Plan customization: your policy’s deductible, reimbursement rate, and annual limit.
Your pet: their age and breed can impact pricing.
Your location: the average cost of veterinary care in your area will impact the cost of your insurance policy.

When Is Dog Insurance Worth It?

We’ve talked a lot about what goes into dog insurance–and it is a lot. But what does it look like in practice? Why do people sign up for dog insurance at all?

Most people who feel unlucky with their dog insurance policy feel that way because either a) they’ve got the wrong policy and don’t have adequate coverage or b) their premium and/or deductible are too high for what benefits they’re getting.

Let’s compare two dog insurance plans and see what happens over the course of one unlucky year for one unlucky pup.

We’ll start by laying out the details for two plans, both for an accident & illness plan for a mixed breed, male, 5-year-old, medium-sized dog (named Mickey) based in Spokane, WA. He has no pre-existing conditions.

Plan A - Low Reimbursement

Deductible: $500

Reimbursement Rate: 70%

Annual Coverage Limit: $2,500

Premium: $23/month

Plan B - Better Reimbursement

Deductible: $250

Reimbursement Rate: 80%

Annual Coverage Limit: $5,000

Premium/month: $46/month

Next, let’s look at what happens when Mickey has an ear infection in February, fights off parvo in April, and deals with a tooth abscess in September.

Add Your Heading Text Here

Plan A

Plan B

February

Ear Infection

($150-$800)

$200 total

Deductible: $200 / $500 used

What you pay: $200 / $20

Deductible: $200 / $250 used

What you pay: $200 / $200

April

Parvo

($500-$2,000)

$900 total

Deductible $500 / 500 used

Insurance reimburses you for $420 ($600 * 70%)

What you pay: $480

Deductible $250 / 250 used

Insurance reimburses you for $680 ($850 * 80%)

What you pay: $220

September

Tooth Abscess

($800-$5,000)

$2,500 total

Deductible fully used

Insurance reimburses you for $1750 ($2500 * 70%)

What you pay: $750

Deductible fully used

Insurance reimburses you for $2000 ($2500 * 80%)

What you pay: $500

What you paid for treatment

$3,600

What you paid for treatment

$1430

$920

Annual Premium Costs

$276

$552

Your total costs

$1,706

$1,472

**Treatment costs vary by region and illness severity.

Key Takeaways

In a bad year like this one, Mickey’s pet parents save money with dog insurance. Instead of paying $3,600 out-of-pocket, they pay less than $2,000.

Be aware of annual coverage caps. By the end of the year, Plan A had paid out $2,170–almost all of Mickey’s annual coverage limit of $2,500. Anything expenses that go over that cap won’t be covered by the insurance company.

In a good year with no illnesses or accidents, Mickey’s pet parents still have to pay the premiums. Dog insurance is part financial safety net and part peace of mind; in a good year, it’s all peace of mind, knowing that if something happened, you have financial support.

It’s not actually bad to have a “good year” where all you pay is the premium. Consider it “future proofing” in the sense that you’re signing up a healthy dog before he develops any pre-existing conditions and becomes an expensive dog.

Test Out Our Calculator

Want to see what it looks like to have a good year versus a bad year with your pet insurance plan? Our calculator is simple (it can’t know what your pet insurance company does/does not cover), but can estimate your out-of-pocket costs for a year by adding up your premium fees and your portion of the vet bills.