United States Eventing Association

It is estimated that in any given year, one in three of the over 150 million dogs and cats in the U.S. will need emergency care, a statistic that as a dog owner I can personally and unfortunately attest to. But like a lot of dog and cat owners (more than 95% by most estimates), I used to never insure my pets. Four dogs, three decades, two cats and no insurance.

In the mid-1990s when I adopted my first German Shepherd, pet insurance that covered veterinary expenses was in its infancy and pretty restrictive, so the idea fell off my radar. Over the years benefits improved, and coverage options evolved as new companies came on the scene. I would fleetingly consider looking into products more thoroughly, but never quite get around to it--a fact that is a bit embarrassing considering I owned an equine insurance agency (so I was in a related industry) and over the years I owned a string of adopted German Shepherds, a unique subset of a breed of dog known for their health challenges.

Over the years I saw more than my fair share of those challenges, some resulting in invoices that kept me up at night, especially during years when, like many pet owners, a credit card was my only way to cover the costs. And even when my personal financial situation was more in the black than red, after pulling $2,500 out of my savings for my dog Ella’s emergency gastroenteritis, and a couple of years later $5,000 to diagnose her bone cancer, I started to feel pretty foolish.

Not quite two years ago, shortly after I lost Ella, I adopted German Shepherd number four, otherwise known as Phinneas (that’s him in the photo), and I decided it was time to face the fact that it wasn’t a question of if, but when, I would be facing yet another hefty vet bill, so I purchased my first-ever dog insurance policy. Seven months and two emergency vet visits later I had maxed out that policy’s $5,000 limit. So yay me, sort of. Phinn responded to treatment and my bank account only decreased by a few hundred dollars for the deductible.

So it turns out that I’m as much a believer in pet insurance as I am in equine insurance, and over the last two years I’ve done a deep dive into this new(er) line of insurance in order to better understand the product so I can offer it to our clients at Marshall+Sterling, and hopefully I can provide some general insight here.

In terms of the numbers, it is estimated in the US that while about 25% of horse owners insure their equine partners, only about five percent of dogs and cats are insured by their owners (though that number increases each year). Why the difference? I would guess my experience is similar to that of many: thinking it’s too expensive, too restrictive, and too complicated to get in place. But, as it turns out, premiums are reasonable and usually with monthly installment plan options, most companies’ coverages are surprisingly comprehensive (some even covering congenital and hereditary conditions), and the application process is only about four questions: age, breed, sex, and zip code.

If my tale of woe and my wake-up call have inspired you to do some pet insurance shopping, here are some factors to consider:

Dollars and Sense

Many pet owners are pleasantly surprised to find out that insurance premiums won’t break the bank, so here are some examples of Accident and Illness coverage premiums (approximately) for some common breeds at two different annual limits: $10,000 and $15,000, both with a $500 annual deductible and 80% reimbursement. I picked these limits since they tend to be the most popular, but a wide array of choices is available for each.

Dog Breed	Age	$10,000 Limit Premium Annual / Monthly	$15,000 Limit Premium Annual / Monthly
Jack Russell	3	$295 / $24	$330 / $27
Australian Shepherd Foxhound	3	$386 / $32	$429 / $36
Corgi	3	$420 / $35	$467 / $39
Golden Retriever Labrador Retriever	3	$516 / $43	$575 / $48
German Shepherd	3	$517 / $43	$575 / $48
American Bully	3	$604 / $50	$672 / $56
Mixed Breed small	5	$368 / $31	$409/ $34
Mixed Breed med	5	$477 / $40	$531 / $44
Mixed Breed large	5	$595 / $47	$663 / $55

Cat Breed	Age	$10 Limit Premium Annual / Monthly	$15,000 Limit Premium Annual / Monthly
Mixed Breed Domestic S/M/Long hair	5	$261 / $22	$291 / $24
Maine Coon, Bengal Siamese, Himalayan Persian American Bobtail	5	$330 / $28	$367 / $31

Premiums tend to be lower on smaller dogs. Also, premiums increase with age for all breeds.

Premiums for cats are generally lower than dogs and vary less by breed, but like with dogs increase as the animal ages.

The premium difference between annual limits of $10,000 and $15,000 is often relatively minimal considering the additional amount of coverage. The same is often true when it comes to reimbursement percentages—make sure to get quotes for various configurations to find what works for you.

Coverages

Most companies offer a policy that covers Accidents and Illnesses, while some also offer a less comprehensive Accident Only coverage for a lower premium. In addition, most companies will offer Wellness types of coverages that help reimburse set amounts for preventative/wellness care such as vaccinations and de-worming. For purposes of this article, I’ll focus on the Accidents and/or Illness coverages.

Annual Limit is the maximum amount the policy will pay out during the policy period (typically one year). Typical limits run from $2,500 to $15,000 or higher.

Reimbursement Limit is the percentage of covered expenses you would get paid in the event of a claim. Many companies will allow you to choose a percentage, which could be as low as 50%, and typically up to 90%.

Deductible is the amount you will pay out of pocket before the policy begins to reimburse you for covered expenses. Pet policies usually have an annual deductible, meaning you only need to meet it once during the annual policy period, unlike equine medical policies which have per-claim deductibles.

Demographic Restrictions

Some companies do not offer coverage to certain breeds, or have an age cut-off.

Waiting Periods

Unlike most equine medical policies, pet policies typically have waiting periods before coverage kicks in, and that period is often different for accidents, illnesses, and orthopedic types of issues, and can be as short as five days or as long as six months. Some companies will allow you to get a waiver from your vet to avoid waiting periods for orthopedic issues.

Claims Speed

Like with most equine medical policies, you will be required to pay your vet directly for services, and then submit the claim to the insurance company for reimbursement, so a quick turnaround time is a plus.

Exclusions

Pet insurance coverage has broadened considerably over the last couple of decades, but some companies still exclude for conditions that are hereditary or congenital. Also, pre-existing conditions are excluded, but some companies will consider reinstating coverage for some conditions that are not chronic or incurable, after a certain period of time.

Also, unlike equine insurance, many companies do not exclude new conditions at renewal, as long as there has been no lapse in coverage. For example, if your dog develops allergies during the policy period, as long as you continue to keep him insured, coverage would be in place each year for those allergies—a good reason to insure sooner rather than later.

Reviews

Hearing what actual clients have to say is invaluable. Check out the company you’re considering working with on Google Reviews, NerdWallet, and consumer review websites like Trust Pilot, or visit online communities like Reddit to see what other pet owners have to say.

Perks

Companies may offer multi-pet discounts, or discounts if you work in the veterinary medical field or are a veteran. And if you’re skittish about making a commitment, some companies offer 30-day money back guarantees. In addition, some companies offer a free 24/7 online vet chat to help in the event of an emergency.

Your Fur Family

Pets are more than just family. They are our children’s first confidants, snuggling with them after a bad dream, and they know just how to pull us out of a funk after a tough day at work. When we’re feeling a little bit lazy they remind us that it’s time to get more steps in at the park, and when we’re stressing over the state of the world, they remind us to slow down for a cuddle. They’re our night owl, curl up with a good book companions, and our wake up at first light to hit the trail hiking partners.

Protector. Roomie. Fellow Traveler. Best friend. Pets are more than just companions, they’re family, and when unexpected vet bills pop up, the cost of care can be overwhelming. Pet insurance can be one way to bring some peace of mind during a chaotic situation so you can focus on what matters—your pet’s health and happiness.

Author Bio

A lifelong dog lover and equestrian who before she owned her first horse was designing “cross-country” courses in her backyard for her Golden Retriever to jump, Amy Daum has three decades of experience in the equine insurance industry, including several years as a member of the USEA staff. A founding partner of Broadstone Equine Insurance Agency, she joined Marshall+Sterling six years ago when M+S acquired Broadstone, and has since served as M+S’s Equine Marketing & Sales Supervisor, and most recently launched their pet insurance program with Prudent Pet.

About Marshall+ Sterling

Founded in 1864, Marshall+Sterling is a 100% employee-owned national independent risk solutions partner, providing business and personal insurance, employee benefits, and wealth management solutions. Marshall+Sterling is committed to empowering customers to predict, prepare for, and preempt risk—creating a future that’s safer and more secure. Headquartered in New York and licensed in all states and the U.S. Virgin Islands, the firm is regularly recognized among the top 50 of privately held insurance brokers in the United States.