LA couple spent $2K on emergency vet fees after their dog ingested meth in an alley. How some pet owners keep costs down

Meanwhile, vet costs are on the rise, as the same study notes that veterinary care costs in the U.S. have jumped more than 60% since 2014 (4).

The national average cost for a routine checkup ranges from $70-$174 for dogs and $53-$124 for cats, according to Care Credit (5). But surgeries and unexpected vet costs can cost much more: a short hospitalization for your pet costs between $600 to $1,700, while a longer stay could cost up to $3,500, according to Emergency Vets USA (6). And emergency surgery can range anywhere from $1,500 to $5,000.

The cost of monthly premiums for a pet insurance policy will depend on several factors, including your pet’s age, breed and general health, as well as where you live. Certain breeds are prone to specific health issues, which means the premium for those breeds will likely be higher.

There are three different general buckets for pet insurance (7):

Accident-only, which includes coverage for foreign body ingestion and poisoning
Accident and illness, which is the most common pet insurance policy but is also the most expensive, since it covers more problems. This coverage includes illnesses and chronic conditions
Wellness, which is an optional plan that is typically added to an accident and illness plan. This covers routine vet expenses like vaccinations and annual exams

Most policies will cover emergency surgery and treatment for diseases such as cancer, but many won’t cover pre-existing conditions.

Once you pick a policy, you then choose your deductible, reimbursement percentage and annual limit, as well as any add-ons. In 2024, the average annual accident and illness premium in the U.S. cost about $749 a year for dogs and $386 for cats, according to the North American Pet Health Insurance Association. Meanwhile, an accident-only policy cost $193 a year for dogs and $110 for cats (8).

Most policies have an annual deductible — that’s the amount you have to pay before your insurance kicks in. Many plans have a deductible of 10%, 20% or 30%. Typically, the higher your deductible, the lower your monthly rate, which is another cost consideration.

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Should you buy pet insurance?

The right pet insurance policy depends on your pet’s needs and your personal finances.

If your dog is young and healthy but accident-prone, then an accident-only plan may make sense. Indoor cats, on the other hand, may be less prone to accidents but could still face chronic health issues, which means an accident and illness policy may be worth consideration.

But your premium isn’t the only financial consideration, as you’ll also need to be able to cover the deductible, as well as any expenses that go over your annual limit. You’ll also be responsible for paying for care that isn’t included in your policy, and you’ll still need to pay for costs out-of-pocket until you’re reimbursed by your insurer.

Typically, you pay the vet the full amount of the invoice and then file a claim with your insurer. The insurer then reimburses you for its share of the costs, up to your limit. And unlike Medicare, you can choose any vet you like, as there’s no network of approved providers.

Another thing to keep in mind is that it could take up to 30 days for your claim to be processed, so you need enough money set aside to cover the bill until you’re reimbursed. You’ll also need enough to cover your deductible and any exclusions, such as routine preventive care or prescription medications.

Another thing to consider is pre-existing conditions, which most policies won’t cover. And certain breeds — like French bulldogs, which are prone to respiratory issues — could be much more expensive to insure.

If pet insurance doesn’t make sense for your situation, you could self-fund your pet’s health care by setting money aside in a high-interest savings account. Unlike paying insurance premiums, if your pet stays healthy, you keep the money, along with the compounding interest.

However, you’d still need to have enough set aside to cover an expensive accident or surgery, so consider whether a vet bill of $5,000 would cause you financial hardship.

If you do have pet insurance, you could pay the bill upfront on a credit card that offers cash back on purchases to help reduce the cost of your deductible. However, you’ll want to be confident in your ability to pay back your credit card bill by the due date so you’re not hit with late fees and interest charges.

Some vets offer payment plans or work with third-party financing companies, but beware of high interest rates that may apply after promotional periods.

If you decide to buy pet insurance, do your research and read the fine print. You want to protect your pet, but you also want to protect your bank account.