Should You Get a Pet Insurance Policy in 2024?

I have a New Year's confession to make: I don't have pet insurance. Now that I've gotten that off my chest, I'll explain myself. I have three cats, and I've been quite fortunate in that, for the most part, they've been pretty healthy. I've also nearly always lived paycheck to paycheck, and shelling out money for an extra bit of insurance wasn't really in my budget.

But as we start off a new year, I am wondering whether I should get policies for my three furballs. Let's consider it together -- and discuss another good idea for funding veterinary care for your beloved pets.

Pet insurance has benefits

I don't have space to give you a complete rundown of how pet insurance works here, but let's cover the basics. A pet insurance policy generally consists of paying a monthly premium for your pet -- this cost is based on the pet's species, age, breed, and sex. Older pets generally cost more -- if I decide to take the plunge, I'll pay more to insure my 12-year-old orange tabby than my 2-year-old tuxedo cat. And most policies only include coverage for accidents and illnesses that crop up while the pet is insured -- pre-existing conditions are not covered (unlike human health insurance under the Affordable Care Act of 2010).

And your pet insurance policy likely also won't include preventive care, which is sometimes called wellness coverage. This means you'll have to pay for your pet's annual exams and care related to that, like rabies shots. If your pet is quite healthy, you may not have much cause to use your pet insurance. That said, accidents and illnesses can happen at any time, which is why I'm considering pet insurance in 2024. My cats and I have a big year ahead of us -- I'm planning to buy us a house, and while I don't necessarily want to commit to an extra monthly expense right now, having insurance would give me more peace of mind while I have so many other unknown costs to worry about.

You might also choose to save money for vet care

I do have another option to cover medical care for my pets, and you do too. We can opt to put the money we would've spent on pet insurance into a good savings account, and have it at the ready in case of an emergency. I did some advance planning for vet care at the end of 2023. I knew my cats would all be visiting the vet for their annual exams and vaccines near the end of the year, and I was able to put aside several hundred dollars ahead of time, so I could easily pay for their visits.

I intend to do this again for 2024, as it took away the financial stress of regular vet care (although, not the stress of bundling my calico cat into her carrier and then my car -- that's her least-favorite thing in the world).

Going back to how pet insurance works, having money put aside is still important even if your pet has a policy. Pet insurers generally reimburse you after care -- you pay your vet's office upfront, then submit your bills to the insurance company and wait to be paid back at whatever level of coverage you have. You likely also have to meet a deductible, and like with health insurance, car insurance, or home insurance, the higher your deductible, the lower your premium costs will be (and vice versa).

It's important to note that vet care for an accident or illness can be extremely expensive, and without a pet insurance policy, you'd be on the hook for hundreds or thousands of dollars. Do what I'm doing, and shop around with the best pet insurance companies to get quotes to insure your pets. You may want to make the same move I'm considering, which is accident and illness coverage, and choosing to just save money for regularly scheduled care. This way, you can get the benefits of pet insurance without overspending.

Ultimately, the choice to get pet insurance this year is yours and yours alone. I know you'll make the right call for you and your beloved pets.