Overinsured: How to Know if You Have Too Much Pet Insurance Coverage

Are you paying more than necessary?

As a pet owner, you do everything in your power to keep your pet happy and healthy. One way to protect your furry friend is to purchase pet insurance coverage. But how much coverage should you get? It can be hard for pet owners to determine if they have too much or too little coverage. Here's what you need to know about finding the right balance.

What does pet insurance cover?

Pet insurance can play a vital role in taking care of your pet. Pet owners can expect to spend $20,000 to $55,000 for a dog and $15,000 to $46,000 for a cat over 15 years of care. These amounts are equal to a down payment for a house or the cost of a new car! This is why getting the right pet insurance policy is vital.

Pet insurers typically offer three types of coverage:

1. Accident Only (AO) policies offer limited coverage and don't cover most illnesses. This coverage is cheaper than comprehensive coverage and is typically best for emergencies.
2. Accident and Illness (A&I) policies are also known as "comprehensive policies," since they cover accidents plus minor and major illnesses.
3. Wellness policies cover routine and preventative care, such as annual check-ups, vaccinations, and teeth cleanings. Insurers may also sell add-ons like holistic and alternative care treatments, preventative care plans that cover physical exams, fecal or internal parasite tests, heartworm tests, blood tests, vaccines, flea/tick medication, routine dental cleaning, and more.

What does it mean to be overinsured?

Being overinsured means you're paying too much for your policy or that you're covered for more services than you actually need. This is usually due to purchasing a policy with higher coverage limits than necessary or opting for coverage for conditions not commonly seen in pets. Your pet insurance premiums are "use or lose." This means you will not get the premiums back regardless of use, so overinsuring your pet can lead to unnecessary costs.

How do I know if my pet is overinsured?

Review your current policy, compare it to what other comparable plans offer, and also what your pet needs. Average monthly premium costs for a pet insurance plan can vary from $10 to $20 for an accident-only plan, $30 to $50 for a comprehensive plan, and $20 to $25 for a wellness plan.

For many pet owners, the cost of a wellness policy is what they would pay out of pocket anyway, so it may not be worth getting a standalone wellness plan. For some pet insurance companies, wellness policies are rolled into comprehensive coverage policies, so a pet owner may not need extra coverage in that case.

You may have opted to add alternative care treatment plans that cover acupuncture, chiropractic, hydrotherapy, physical therapy, laser therapy, massage, herbal therapy, and more. Depending on the type of pet you have, you may not need these types of care or they may not offer much benefit. You may also want to only cover conditions more commonly seen in pets (such as cancer treatments or accident-related injuries) rather than rare occurrences like snakebites.

What should I do if I think my pet is overinsured?

It may be time to start shopping around for a new plan or opt out of certain types of coverage you may not need. Look into different providers and see if they offer similar levels of coverage at lower prices. Talk to an expert about what services should be covered by your policy and which ones can be safely excluded without compromising the quality of care for your pet.

Next, evaluate your current coverage. The amount of coverage you need will depend on the type of animal you have, as well as their age and lifestyle. For example, an older dog with few medical issues may not require the same level of coverage as a younger cat with a history of medical problems. Take into account any pre-existing conditions that may impact the amount of care your pet needs in order to determine the right level of coverage for them. You may be paying a high premium for a condition your insurer may decline to cover, so it's important to read the fine print to see what the insurer will or will not cover.

Additionally, consider how much you can afford before selecting a policy. Set up a budget that works for both you and your pet by factoring in all of the costs associated with their care, including routine visits, medications, vaccinations, etc., and compare those expenses against what different policies offer in terms of reimbursement rates and deductibles. This will help you find a plan that fits within your budget while still meeting all of your pet's health care needs.

Bottom line

No matter how much love we give our pets, sometimes it's just not enough when it comes to taking care of their health concerns down the road. That's why having proper pet insurance coverage is so important! With careful research, you can ensure that your beloved pet has access to quality medical care with insurance that fits in your budget. Make sure that whatever plan you choose provides ample protection. That way, both you and your four-legged friend can breathe easy knowing you have coverage if they ever need it.