Exploring pet insurance in America

What to consider when renewing pet insurance
September 23, 2020
An Agile approach
October 16, 2020

According to the American Pet Products Association, Americans spent $29.3 billion on veterinary care and products for their pets last year. As figures rapidly add up, owners are exploring how pet insurance can help reduce costs in the long-term. Having explored the market in the United States, we have compiled four key points for owners to consider when insuring their pet.

  • Pet insurance is not always cheap. According to the North American Pet Insurance Association, the average cost of an accident and illness premium is $585.40 for dogs and $349.93 for cats annually. To avoid paying unexpected fees, owners should ensure they research which policy is most cost-effective and beneficial for their pet, whether that be a lifetime or per-condition policy. For example, recent research shows that paying for treatment upfront can be less expensive than paying annually.
  • The cost of pet insurance largely varies on the breed of the animal. Rottweilers are extremely susceptible to common conditions such as dental disease, bacterial infections and obesity meaning they are one of the most expensive dogs to insure in America. According to research from Prudent Pet, owners of this breed can expect to spend more than $300 on insurance annually and even more on claims.
  • Pet insurance providers typically exclude pre-existing health conditions. It is important to understand what pre-existing conditions the pet insurance company deem curable and incurable. Curable conditions can potentially be covered if the pet goes 12 months symptom free while incurable conditions may never be covered.
  • Premiums can rise annually. This is primarily due to the risk of the pet developing an illness as it ages. Other research from the North American Pet Health Insurance Association suggests older and larger animals face higher pet insurance rates as these groups tend to face the most health issues. Although this varies from state to state, annual rising pet insurance costs for aging pets can seem inevitable.

However, pet insurance providers are doing much more to educate policyholders about the value pet insurance can provide such as expensive claims in the early years and increasing veterinary costs for later in life ailments as treatments become more sophisticated and effective. This, coupled with far greater use of intelligent automation and sophisticated risk profiling, is helping to make pet insurance more affordable and easier to buy than ever before. Discover more about how our innovative software is enabling pet insurance providers to transform their customer offerings here.

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