Even though we don’t sell pet insurance at IASTL, we want to keep you informed. The benefits of pet insurance are varied. Besides covering your vet fees and other related costs, knowing you are insured relieves you of the quandary that many pet parents face daily. Namely, worrying if they can afford veterinary care when they should only be focusing on having a good time with their pet. Here are some tips to help you save on pet insurance costs.
But pet insurance plans, though being among the less expensive insurance types available; it’s not always affordable to everyone.
Approximately, How Much Does Pet Insurance Cost?
In case you are a new pet owner, you are probably wondering how much it can cost to insure your dog or cat.
Like other insurance products, you must pay monthly premiums to keep your pet insurance policy active. Usually, these premiums are the first thing pet owners look at when deciding on a plan.
But luckily, pet health insurance premiums are relatively low. According to 2020 NAPHIA industry data, the average monthly pet insurance premium for illness and accident policy for cats and dogs is $28.48 and $49.51, respectively. That said, pet insurance premiums differ widely depending on various factors, such as the type of coverage, the pet breed being insured, medical history of the pet, and more.
An insurance policy with a low monthly premium may not provide much coverage, but it will be affordable in the short term. Contrary, a plan with a high premium will provide more coverage, and the higher immediate costs will translate to paying less when emergency treatments are needed.
Taking that into account, here are a few tips to help you keep your premiums down to a minimum when looking for an insurance policy for your pet.
Take Time To Shop Around
You will be surprised at how much disparity there can be between pet insurance quotes. Have you ever questioned why insurance quotes vary so much?
As we mentioned earlier, pet insurance rates are influenced by various factors, but each insurer weighs those factors differently. Although you may get a rate of $40 per month from one insurer, another might offer you a plan with similar features for $30 per month. You can save a substantial amount of money annually just by comparison shopping.
Choose A Large Deductible
As with other types of insurance products, pet policies allow you to choose among several options that determine how much of the yearly cost of care you will bear.
The size of your deductible determines the amount you have to cover each year before your insurance plan kicks in. The higher the deductible, the more competitive your monthly premiums will be, and vice versa.
Although deductibles can range between $100 and $1,000, the National Association of Insurance Commissioners (NAIC), in 2019, established that the most common deductible options are $750, $500, or $250.
The downside of having large deductibles is that you will have to pay more money upfront anytime you need to make a claim. To an extent, this isn’t a bad thing — if you only make a few (let’s say one or two) claims annually. From that, it is easy to put some money aside for the deductibles.
Pick A Lower Reimbursement Plan
Another way you can reduce your monthly premium is by going low on the reimbursement rate.
Instead of paying vets directly, insurance companies reimburse you a share of your veterinary costs (of course, after the deductible is covered). Insurers usually allow you to pick between 70% and 90% reimbursement. Unsurprisingly, selecting a lower reimbursement plan reduces premiums.
Similar to picking a higher deductible, picking a lower reimbursement plan can be chancy if you get several high veterinary bills in a year. Evaluate your finances and ensure you can afford to pay the out-of-pocket expenses in a worst-case scenario.
Look For Discounts
Again, just like other insurance companies, pet insurers offer discounts. For instance, depending on the insurance company, you could receive up to 10% off by insuring multiple types of pets.
Other insurers might offer military discounts and discounts for settling your yearly policy upfront. A select few even offer diminishing deductibles any year you go claim-free.
If you can combine some of these discounts, you can end up benefiting from more than one.
Only Pay For What You Need
Got a Bulldog with a history of skin allergies? You may opt for a comprehensive medical policy.
Got an aged Toy Fox Terrier who never leaves the compound? Yes, you may need a vet cover; however, do you actually need additional cover to pay for advertising if he goes missing? Perhaps you do, but the secret is to assess your pet’s lifestyle and find an insurance plan that only covers the dangers your pet is exposed to.
If you don’t go on vacation, you do not need to pay for holiday cancellation cover. In other words, that is the kind of thinking that will save you money.
The younger your pet, the less your insurance premiums will be. Obviously, if you have an elderly pet, this will not apply. You don’t have a way to go back in time. However, consider this if you are planning to purchase another pet in the future.
Pet insurance gives you significant peace of mind of knowing that you will not have to foot costly vet bills entirely on your own. Considering the above tips will leave you in a better position of finding an insurance plan that suits your pet’s needs for less.
Don’t forget to check out the insurance lines that our independent insurance agents sell at IASTL. You can’t purchase pet insurance from us, but you can purchase auto insurance including high-value auto insurance, homeowner insurance including high-value homeowner insurance, business insurance, earthquake insurance, and more.
We hope our tips to help you save on pet insurance costs have helped you even though we are not a pet insurance company and don’t sell pet insurance at Insurance Advisors Of St. Louis.