3 Things to Know When Choosing Pet Insurance Through Costco

While I was wading through the Costco website the other day, I noticed that the company has a partnership with Figo pet insurance, which helps members save even more money with their Costco membership.

Being the curious cat I am, I took a look. And what I found will astonish you. Here are some facts to know before you commit to buying pet insurance through Costco.

1. Costco members save 15% or more

Because Costco is always trying to find more ways to help us save, if you apply for Figo insurance through the Costco link on the website, you can save 15% or more, based on your membership type. Costco Gold Star and Business members save 15% on base Figo coverage; Executive members save 15% plus the $15 enrollment fee for Figo.

I tested this, just to make sure there wasn't a catch. Even though my cat Gomez has his own insurance already through Spot, I'm using him as an example.

I built a policy similar to what he already has, with $5,000 in coverage, a $100 deductible, and 90% reimbursement, plus optional vet exam fee coverage and Wellness Plus, which covers some of his fees for his annual shots and other needs. Before the Costco discount, Figo estimated all of this to come to $38.52 per month; after, it was $35.21.

I'm just a Gold Star member, so I will also still pay the $15 enrollment fee, should I choose to enroll.

2. You can choose unlimited annual coverage

Most pet insurance plans will not offer you unlimited coverage. Trust me, I looked at 20 different plans before I chose the one I have now. They typically cap out around $10,000 -- but not Figo. Figo offers an unlimited coverage tier, which will even work with a $100 deductible and 90% reimbursement.

My non-Costco application pegs it at about an additional $12.48 for a 1-year-old neutered male mixed breed cat, and about $10.62 for the unlimited upgrade with the Costco discount, when compared to the base $5,000 in coverage.

But unlimited coverage is a lot of coverage. I mean, sure, we'd all love to be able to do everything possible for our pets, but there is a line that we cannot cross, considering that most pet insurance is reimbursement-based. You aren't going to be getting $100,000 worth of coverage in a year unless you have some very rich friends who will spot you the money until your insurance pays you back.

You're better off asking your vet about pricing for the procedures you're most concerned about and then doubling or tripling that amount. For me, the whole reason I got pet insurance for my feral goblin child was because he's male and a cat, and I've heard some horror stories about urinary blockages. For that issue, $5,000 is more than enough coverage in my area, even at the emergency vet.

For Costco members, the difference between even the $10,000 coverage and unlimited is about $80 a year; the difference between $5,000 and unlimited is almost $120 per year.

3. Wellness packages may or may not be worth it

Figo, like many pet insurance plans, offers optional Wellness packages that cover yearly vaccines, bloodwork, microchipping, and so on. Sometimes it's worth it and sometimes it's not. It really depends on why you're choosing wellness and what's in the package you're being offered.

Let's look at the Figo Wellness Plus plan for Gomez, for example. It has a limit of $40 of coverage for wellness exams, $50 for vaccines, $45 for testing, including testing for worms, and $10 for deworming. It's $16.50 per month.

So, if I know these are the only procedures he'll need (there are other coverages with this package, like neutering, microchipping, and teeth cleaning), then I know I'm using $145 worth, but paying $198. For this to make any financial sense, we'll need to use the full coverage. He's already been neutered and microchipped, so we're kinda out of luck there.

The Wellness Basic plan is just $9.50 per month, but Gomez will only use $80 worth of that coverage, so I'm still short at $114 per year for that particular plan.

With Figo, Wellness just doesn't make financial sense for Gomez, and there's no additional discount for Costco members regardless of which add-on package you choose.

Costco's partnership with Figo can get you a deal on pet insurance

No matter what your budget, the deal Costco has made with Figo can save you money on pet insurance. But you have to really think about what kind of coverage you need and how you'll use your plan.

If you're simply looking to keep ahead of a serious, common problem like I am, you can probably do without the bells and whistles and save a little bit more while you're at it.