Vet Costs Skyrocketed in 2023. Is Now the Time to Invest in Pet Insurance?

Inflation drove up the costs of nearly everything in 2022 and 2023, but few expenses rose as quickly as vet bills. Veterinarian services climbed 10.8% from December 2022 to December 2023, according to the Bureau of Labor Statistics. And in some areas, the increase was even greater.

While some are comfortable continuing to pay for their pet's expenses out of their own pocket, many are turning to pet insurance to ease the strain on their wallets. Here's how to decide if you should invest in a policy this year.

What is pet insurance?

Pet insurance is similar to health insurance for humans. It pays for a portion of our furry companions' vet bills if they become ill or injured. It may also cover common surgeries, like spaying or neutering. But a lot depends on the policy.

The cheapest pet insurance policies cover only accidents, while comprehensive policies cover illnesses and chronic conditions too. Some companies also offer add-ons that cover wellness treatments or routine visits.

Emergency vet visits for dogs can cost anywhere from $160 to $1,290, according to Rover.com, while cat emergency visits run anywhere from $215 to $1,615. By purchasing a pet insurance policy, pet owners can lessen the blow of these large bills by trading the occasional unexpected expense for predictable monthly payments. Many find this more manageable. It can also help them avoid choosing between their finances and their pet's life if their dog or cat becomes gravely ill.

But premiums aren't the only cost associated with pet insurance. There are deductibles the owner must pay before the pet insurance policy kicks in. And just about every policy has copays as well. This can be as high as 30% of the vet bill. So even with insurance, owners will still need to set aside some money for emergency costs.

It's up to each pet owner to decide whether pet insurance is a wise investment for them. It doesn't hurt to get a few quotes to see what's out there, though.

How to find the best pet insurance

Finding the best pet insurance begins the same way as shopping for any other type of insurance. First, pet parents need to think about the coverage they want. As mentioned above, accident-only coverage is the most affordable option, but it also has a lot of gaps. A comprehensive policy is a better choice for those who want all their bases covered. Once this has been decided, it's easy to rule out providers that don't offer all the desired coverage options.

Next, it's time to get quotes. Most pet insurance companies have online quote tools that can give a price estimate in minutes. Applicants only need to enter a little information about their pet, including their species, breed, sex, and date of birth, as well as some information about their location.

When that's done, pet owners will have the option to customize their quote by choosing their deductible and copay. Increasing one or both of these will reduce monthly premiums. But it also means policyholders will owe more out of pocket in the event of an accident.

It's also worth the time to read through a sample policy before purchasing pet insurance. Sometimes, there are hidden limitations or restrictions the website may not advertise. Knowing this upfront can help pet parents rule out unsuitable matches and avoid surprises when they file a claim.

With all that done, compare the options and select the best one. Then, compare this to the out-of-pocket costs that could arise with skipping pet insurance. A quick call to the local vet to learn about common costs associated with emergency vet services could be helpful here.

The final decision is a personal one. For some, pet insurance brings peace of mind that's worth the extra cost. And for others, it's easier to save for vet bills on their own in a savings account. It's possible to change your mind later too, if need be.