Types Of Pet Insurance Plans
When youre looking to insure your pet, the first thing to do is take a good look at your finances and how much youre able and willing to spend in case of an emergency. Each type of pet insurance policy will have different types of coverage and come at a different price point. Knowing what each type has to offer is crucial for understanding how to buy pet insurance.
- Accident-only policies An accident-only plan may suit you best if your main concern is your cat or dogs propensity for mishaps. Theyre usually more affordable than plans with more coverage.
- Accident & Illness policies These are the all-inclusive pet insurance plans, covering both accident and illness coverage. They can be expanded to be truly comprehensive by adding wellness coverage, which is usually an add-on rather than an integrated part of the plan.
- Comprehensive policies Some insurers offer comprehensive policies covering everything, from accidents to illnesses to wellness to routine care. For example, they may cover the cost of dental care, chiropractic care, spaying, vaccinations, behavioral therapy, and more. Naturally, these plans have the heftiest price tag but are worth it for the peace of mind.
If you want to evaluate whether an insurer is right for you, it might be a good idea to download one of their online sample policies.
Is Pet Insurance Worth The Cost
According to one well-respected consumer magazine, the answer is it depends. In 2105 Consumer Reports looked at policies from three major insurers in the pet insurance industryEmbrace, Healthy Paws, and Trupanionand compared them with a lifetime of vet bills for Guinness, a 12-year-old Labrador mix from Westchester County, N.Y., and Freddie, a nine-year-old mixed-breed cat from Fairfield County, Conn. The magazine found that for Freddie, who was reasonably healthy, only one policy would have paid out more than his healthcare cost. However, for Guinness, who was diagnosed with skin cancer, all three plans would have been worth it.
The informational website ConsumersAdvocate.org in 2017 found that pet insurance for wellness care isnt worth the cost. According to the report, the cost of routine care is usually negligible, especially early on in the life of a pet, and the yearly insurance cost is more or less what you can expect to pay directly to a vet.
Remember that pet insurance, or any insurance for that matter, isnt designed to turn a profit . You purchase insurance to protect against catastrophic events and shouldnt expect to make money.
% Of Dog Owners And 41% Of Cat Owners Buy Premium Pet Food
Obviously more and more pet owners are looking to focus more not just on keeping their pets fed, but healthy as well.
According to the latest pet food industry statistics, e-commerce sales also grew. Amazon is among the leaders, with a 45% sales increase compared to the previous year.
This incredible spike is another effect of the Covid-19 pandemic. Lockdowns and social distancing were a tremendous boost for pet food sales.
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What Affects Your Pet Insurance Premiums
The average cost of pet insurance depends on your pet, the coverage you buy and where you live. Insurers will also look at:
- Species: Dogs cost more to insure than cats, and male animals generally come with larger premiums.
- Breed: Larger pets generally cost more to insure because they tend to have shorter life spans and develop more health issues.
- Age: Younger pets are cheaper to insure, as they usually have minimal health issues in their early years.
- Location: Premiums vary according to state and ZIP code, with more densely populated areas carrying higher insurance costs.
Generally, a low deductible, high reimbursement level and high annual maximum will reduce your out-of-pocket costs per incident but will result in a higher premium each month.
Most plans also let you purchase “endorsements,” or add-ons, which enhance your core coverage and increase your monthly premium. Common endorsements include exam fees, routine checkups or prescription food.
Editorial Note: The content of this article is based on the authors opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.
% Of Pet Industry Customers Are Millennials
Millennials are the most numerous pet owners, but Baby Boomers arent much behind. Theyre right behind with 29%, while Gen Xers follow with 26%.
Gen Z and Builder generations make up the rest of the pet owners.
So far, pet industry trends have shown that Millennials with pets also tend to use technology to purchase products and services.
The pet industry market research reveals this has helped form a robust market with an abundance of new pet-related business ventures. With this in mind, the pet market should continue to expand in size.
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Which Kind Of Pet Visits The Vet Often
Cats and dogs visit the vet often. But apart from them, birds, specialty or exotic pets, and horses received veterinary care, too.
- Dogs went to the vet 1.5 times per year. For cats, visits were 0.7 times annually.
- Birds received veterinary attention 0.1 times while the rate for horses is 0.7 times.
- Exotic pets had the least visits with just 0.02 times.
- Among the 172.3 million visits to the vet, 123.3 million or 71.6% of those belonged to dogs.
Cover Can Start From As Little As 50
- Vets fees in case of illness or injury to any animal in your care. This does not include pre-existing medical conditions.
- Theft, straying or deliberate accidental release where the animal is not found or returned within seven days.
- Costs incurred due to injury of an animal whilst being transported in connection with the business.
- Legal cover for claims for breach of professional duty arising from the treatment of an animal. Some exclusions may apply.
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Tailored Pet Care Business Insurance
British pet owners spend billions each year on their beloved companions, and as a result the pet care industry is a burgeoning one. But when people are trusting you with their pet, they need to be completely confident that you’re reliable and trustworthy. A solid business insurance policy gives you the back-up you need to do the work you love, and shows owners that you take your responsibilities seriously. We offer insurance for various types of pet minders, such as pet groomers, walkers and breeders. We also provide insurance for pet shops and pet accessory shops, pet parlours and dog beauticians.
What Factors Determine The Cost Of Pet Insurance
The size, breed, age, and geographic location of your pet all influence the cost of your insurance policy. The length of your policy and the company offering your plan also play a role. Finally, you get to determine what type of policy works best for you by selecting a quote that makes sense for your budget.
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Pet Industry Market Size Trends & Ownership Statistics
Total U.S. Pet Industry Expenditures
Year Billions of dollars
Actual Sales within the U.S. Market in 2020
In 2020, $103.6 billion was spent on our pets in the U.S.
Breakdown: Pet Food & Treats $42.0 billion Supplies, Live Animals & OTC Medicine $22.1 billionVet Care & Product Sales $31.4 billionOther Services $8.1 billion
Estimated 2021 Sales within the U.S. Market
For 2021, it estimated that $109.6 billion will be spent on our pets in the U.S.
Estimated Breakdown: Pet Food & Treats $44.1 billion Supplies, Live Animals & OTC Medicine $23.4 billionVet Care & Product Sales $32.3 billionOther Services $9.7 billion
Data sources and notes
Pet Food & Treats: Source: Nielsen Scan 52 Weeks ending 12/28/2020 for xAOC+C and Pet Retail. Ecommerce pet food sales data powered by Rakuten Intelligence. Pet food sales for 2020 in Vet clinics, Farm & Feed, Direct-to-Consumer, Costco were estimated using industry/financial reports and any available data for either of these channels. Other pet food categories not tracked by Nielsen were obtained from Euromonitor data.
Pet Supplies Live Animals & OTC Medicine: Pet Supplies and OTC Meds are based on data provided by Euromonitor, Nielsen Scan, Rakutan Intelligence and Packaged Facts. Live Animals includes fish, birds, small animals and reptile and is based on APPA estimates and data provided by leading retailers and industry suppliers.
All data was reviewed and validated by industry experts and leading pet retailers and manufacturers.
Urgent Care Vs Routine Checkups
|Urgent Care||Routine Checkups|
|Accidents, respiratory problems, and poisonings require immediate medical attention||Routine checkups and elective procedures should be postponed as long as possible so that veterinary offices can avoid a higher number of patients.|
|For emergency trips, make sure to adhere to CDC guidelines regarding masks and social distancing.||Pet owners should make use of telemedicine alternatives instead of making in-person visits to the vet.|
Keep in mind that depending on the hospital, staff may be operating in-person or with curbside service, and many health providers are offering alternatives for non-urgent yet essential procedures .
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Pet Insurance Coverage & Savings
Pet health insurance works similarly to property insurance. You purchase coverage from an insurance provider, and your plan reimburses you for certain expenses related to your pets healthcare. With top insurance companies you get reimbursed for 80%, 90%, and even 100% of the vet bill .
Like most insurance options, you’ll pay a monthly premium to keep your coverage active. Once your deductible is met, you can expect your insurance provider to pay for your pets eligible expenses, based on your reimbursement rate, up to your limit.
What Most Plans Cover:
Accident-only plans will only provide reimbursement for emergency care related to accidents, like if your pet is hurt by a car or injures themselves by falling down the stairs. This type of coverage does not cover illnesses or breed-specific issues
Accident-illness plans provide coverage for both accidents and unexpected illnesses. It is the most common, as it represents about 98% of plans issued by the pet insurance industry. This type of plan wont cover preventive care or pre-existing conditions, but you can expect reimbursement for almost everything else.
Finally, you can purchase an accident-illness plan with a wellness add-on. This is the most expensive type of plan on the market, but it provides the most comprehensive level of coverage. The only health issues that arent covered pre-existing conditions.
When comparing providers you’ll want to look for the right blend of comprehsive coverage and lifetime value.
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Demographics Of Pet Owners In The Us
What kinds of pets do these people keep in their homes?
- 61% have more than one pet in their households.
- 74% of those who participated in the survey own dogs, 61% have cats, and 13% take care of fishes.
Now on to spending:
- Apart from essential supplies like food and water, 62% of pet owners have grooming products, 73% have cages, terrariums, and the like, and 43% have transport baskets.
- 17% of pet owners use up to $5 a month for toys. Interestingly, some owners go above and beyond by shelling out over $251 per month.
- When it comes to supplies expenditure, most pet owners put the ceiling at up to $50. Some people forego supplies, as 23% said they have no expenses in this area.
Sure, pet owners like to lavishly spend on food and supplies for their pets, but how much are they willing to shell out for veterinary visits?
- In 2019, US veterinary services revenue hit $46 million.
- The 2020 forecast is $44 million, and that number is expected to rise to $46 million in 2021.
- The top reason for bringing dogs to the veterinarian is skin allergies. There were 140,000 claims with an average expense of $255.
- Meanwhile, most cat owners took their feline animals to the vet because of bladder or urinary tract problems. The treatment had an average cost of $495.
Take The Lead From The Pet Industry Specialists
Some of the pet businesses that can get cover include:
- Pet minders and sitters
- Pet walkers
We can offer you MONTHLY PAYMENTS to make your whole insurance program affordable and manageable.
Depending on your circumstances, we can offer animals in transit insurance to protect you when transporting pets, car insurance, cover for your tools of trade, personal accident insurance and much more.
Public liability insurance is particularly important in the unpredictable conditions of working with animals, as it will cover you if you are negligent and an accident occurs.
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Issues And Challenges In The Pet Industry
Though the pet industry is robust, like any other sector, it has its own set of problems and challenges. In particular, it is seeing growth because of the help of ecommerce. However, for some businesses, this is a bane rather than a boon. Whats more, pet owners have become more cautious when it comes to their pets food. This is brought about by the presumed relationship of grain-free diets and canine dilated cardiomyopathy. It has to be noted, though, that the US Food and Drug Administration has not yet established a positive correlation.
- Ecommerce is expected to have 26% of pet product sales by 2023. In 2019, it took 20% of the total sales.
- Brick-and-mortal pet specialty businesses lost some revenue, slipping from 29% in 2019 to 25% by the time 2023 closes.
- Annual sales growth of pet food and treats increased by 5% in 2017, but 2018 sales slowed down. The 2.6% growth rate is expected to continue until 2023.
- Pet supplies like apparel, anti-tick, and anti-flea products, crates, supplements, and others grew by 3.2%. Revenue from these products reached $17.5 billion in 2018.
- Ecommerce accounted for 21% of non-food pet supplies in 2018.
- In contrast, ecommerce only accounted for 17% of pet food in the same period.
- 57% of super leaders, who are the most involved among connected consumers, write reviews every week.
- Among them, 65% would share a positive experience with a brand, and 78% expect a reply from companies.
Why You Need Insurance For Your Pet Care Business
Your pet care services business can face both property and liability risks. And any disruption can bite into your cash flow. Getting the proper coverage can help to protect your business and the precious pets in your care. Like other small businesses, pet care businesses must guard against disasters, such as fires, tornadoes and theft. But pet care businesses also face unique risks. Here are two scenarios that could complicate matters for a pet care business:
- The insured’s employee accidently injures a customer’s dog with the clippers while performing grooming services.
- A new pet sitter goes to a client’s home to feed their pets while the family is on a vacation. While there, the sitter takes a diamond bracelet out of a jewelry box and slips it into her bag.
People Spend Big Time On Pets
As a nation, Americans spend vast sums of money on our pets. Last year, the U.S. pet industry hit a staggering $103.6 billion and is expected to go to $109.6 billion this year. A breakdown includes $42 billion in food and treats, $31 billion in veterinary care, $8 billion in services such as grooming and boarding, and $22 billion in other services. While the food cost is higher, that one is easier to manage for most pet owners due to its regularity and expected nature. Veterinary care, by contrast, is harder to anticipate. Unexpected vet bills as a result of accidents or injuries are the most common driver of high pet care costs.
No one wants their precious pet to be hurt or sick, but making sure a pet gets the care they need can cost thousands of dollars. A great way to mitigate against unexpected vet bills is to be proactive with your pet and keep them healthy. 80% of pet owners bring their pets to the veterinarian at least once a year. Doing so helps catch issues early and allows preventative care to be administered.
What To Watch For
First, if your pet has preexisting conditions, your policy wont cover them. If your animal has abdominal pain, for example, some companies may try to limit coverage on any condition that lists abdominal pain as one of its symptoms. Before saying yes to a pet insurance policy, talk to the company and have it clarify how it decides what constitutes a preexisting condition. Something in your pets medical records that is harmless may become a big deal if you later file a claim. On a related note, you may have to get your pet checked out by a vet before getting coverage if it hasnt been seen by a vet in more than a year.
Next comes the waiting period. You cant take out pet insurance when you learn that your pet requires a costly procedure. Insurers know that trick. Thats why they instituted waiting periods, which vary by state but will generally be 24 to 48 hours for accidents, and from 14 days for an illness to one year on certain medical conditions, depending on the type.
Ask about maximum payouts. These might include maximums per incident, per year, or over the life of the policy. Generally, the highest-level policies have the highest payouts.
Finally, most policies will increase your premium to account for rising costs and the condition and age of your pet. However, some companies do not. Ask about rate increases before signing the policy.
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There Are A Number Of Things You Shouldconsider Before Selecting Coverage:
Your Pets Species
Dogs and cats are the most commonly covered companion animalsaround the world. In North America, 85% of all of the policies currently inforce cover dogs, while the remaining 15% cover cats. In other countries andin less than a percent of U.S. policies exotic pets such as birds,reptiles, rabbits and ferrets are also covered.
Your Pets Breed
Some breeds are naturally predisposed to developcertain medical conditions. It is important to know and consider the risksassociated with your breed before you choose the level of coverage you require.For example, some types of dogs are more likely to develop diabetes or cruciateligament injuries.
Cost of Treatment
Ask your veterinary professional about the costs associated withtreating some of the most common conditions for your pets breed. Thisinformation will help you to determine the level of coverage limits that you will require. You may be surprised at the fees associatedwith certain conditions which is all the more reason to ensure you have pethealth insurance in place.
What Is Not Covered?
Certain items are excluded from the most typical type of petinsurance coverage, or Accident and Illness policies. The most commonones are listed below. However, this is not an exhaustive list and will varyfrom one company to another. You should always be familiar with the terms ofyour policy.