Updated: August 2026

Choosing pet insurance is not simply a matter of finding the company with the lowest monthly premium.

Two policies can have very different prices while offering very different levels of protection. One may have a lower premium but a higher deductible and more exclusions. Another may cost more each month but provide a higher reimbursement percentage or a larger annual limit.

That is why a meaningful pet insurance comparison should look at the entire policy, not just the advertised price.

The National Association of Insurance Commissioners (NAIC) recommends comparing policy benefits, deductibles, limits, exclusions, reimbursement methods, waiting periods, pre-existing-condition rules and other terms before purchasing pet insurance.

This guide explains exactly what to compare and provides a practical framework you can use when reviewing pet insurance policies for your dog or cat.

Important: This article is for general educational purposes. It is not insurance, financial, veterinary, or legal advice. Coverage, exclusions, pricing, eligibility and consumer protections vary by insurer and state. Always review the current policy documents and applicable state requirements before purchasing coverage.

Quick Answer: How Should You Compare Pet Insurance?

Don’t compare policies by premium alone.

Instead, compare these 10 factors:

1. Monthly or annual premium
2. Deductible
3. Reimbursement percentage
4. Annual or lifetime limits
5. Covered conditions
6. Exclusions
7. Pre-existing-condition rules
8. Waiting periods
9. Claim reimbursement method
10. Your pet’s age, breed, health history and financial needs

A policy with a $40 monthly premium is not necessarily cheaper overall than one costing $60 per month.

The cheaper policy could have a larger deductible, lower reimbursement, smaller annual limit or more exclusions.

Pet Insurance Comparison at a Glance

Factor	What to Compare	Why It Matters
Premium	Monthly/annual price	Determines recurring cost
Deductible	Amount you pay before reimbursement	Affects emergency out-of-pocket cost
Reimbursement	Percentage or benefit schedule	Determines how much may be reimbursed
Annual limit	Maximum payable per year	Limits protection against large bills
Lifetime limit	Maximum over the policy/pet lifetime, if applicable	Can affect long-term protection
Coverage	Accidents, illnesses, surgery, diagnostics, etc.	Determines what risks are insured
Exclusions	Conditions and treatments not covered	Can materially change policy value
Pre-existing conditions	How the insurer defines them	Important for pets with previous symptoms
Waiting periods	Accident/illness/orthopedic periods	Coverage may not begin immediately
Claim process	Reimbursement/direct payment and timing	Affects cash flow during treatment

NAIC identifies many of these same factors as important considerations when consumers compare pet insurance.

Why the Cheapest Pet Insurance Is Not Always the Best

Suppose you are comparing two hypothetical plans.

Plan A

• $35/month premium
• $1,000 deductible
• 70% reimbursement
• $5,000 annual limit

Plan B

• $55/month premium
• $500 deductible
• 90% reimbursement
• $15,000 annual limit

Plan A costs less every month.

But if your primary goal is protection from a large veterinary bill, Plan B may provide a different level of financial protection.

This doesn’t mean Plan B is automatically better.

The right choice depends on:

• Your budget
• Your emergency savings
• Your pet’s health
• Your risk tolerance
• The policy’s exclusions
• The type of veterinary care you want covered

Step 1: Compare the Premium

The premium is the amount you pay to maintain the insurance policy.

It may be quoted as a monthly amount or annual amount.

Pet insurance pricing can vary based on factors including:

• Species
• Breed
• Age
• Location
• Coverage selected
• Deductible

NAIC specifically identifies these as factors that can affect pet insurance costs.

Don’t Compare Premiums in Isolation

A $30/month policy costs:

$360 per year

A $60/month policy costs:

$720 per year

The second policy costs twice as much in premiums.

But if it also provides substantially different:

• Coverage
• Deductible
• Reimbursement
• Limits
• Exclusions

then the comparison cannot be based on price alone.

Step 2: Compare the Deductible

The deductible is one of the most important numbers in a pet insurance policy.

It determines how much you may have to pay before the policy reimburses eligible expenses according to its terms.

For example, consider a hypothetical:

Eligible veterinary expense: $4,000

Deductible: $500

The policy may apply the deductible before calculating reimbursement.

But don’t assume every policy calculates claims in exactly the same way.

NAIC notes that deductibles can be structured differently, including annual or per-incident approaches.

Ask:

Is the deductible annual, per incident, per condition, or another structure?

That answer can significantly affect the policy’s real cost.

Step 3: Compare Reimbursement Percentage

Pet insurance policies may reimburse a percentage of eligible expenses or use another reimbursement method.

Common examples you may encounter include:

• 70%
• 80%
• 90%

But a higher percentage does not automatically mean a better policy.

You need to understand:

• What expenses are eligible
• When the deductible is applied
• Whether the insurer uses the actual veterinary bill
• Whether a benefit schedule applies
• Whether other limits apply

NAIC notes that reimbursement methods can differ among pet insurance companies.

Example: Comparing 70% and 90% Reimbursement

Suppose an eligible expense after applicable deductible rules is:

$3,000

70% reimbursement

Illustrative reimbursement:

$2,100

90% reimbursement

Illustrative reimbursement:

$2,700

Difference:

$600

But the 90% policy may have a higher premium.

Therefore, compare:

Extra premium paid

versus

Additional financial protection received

rather than choosing the highest reimbursement percentage automatically.

Step 4: Understand the Annual Limit

An annual limit is the maximum amount a policy may pay during a policy year, subject to the policy terms.

For example:

$5,000 annual limit

and

$20,000 annual limit

provide very different levels of protection against major veterinary expenses.

If your main reason for buying insurance is protection against catastrophic veterinary costs, the annual limit deserves serious attention.

NAIC notes that policy limits can be structured in different ways, including annual, lifetime, per-incident or per-procedure limits.

Step 5: Check for Lifetime and Per-Condition Limits

Don’t stop after checking the annual limit.

Look for:

• Annual limits
• Lifetime limits
• Per-condition limits
• Per-incident limits
• Per-procedure limits

A policy may appear generous because it advertises a high annual maximum while imposing other restrictions.

Read the actual policy wording.

Step 6: Compare What Is Actually Covered

This is where many pet insurance comparisons become misleading.

A policy may advertise:

“Accident & Illness Coverage”

But the exact definition of covered treatment can vary.

Potential covered categories may include:

• Accidents
• Illnesses
• Surgery
• Hospitalization
• Diagnostic tests
• Emergency treatment
• Prescription medications
• Specialist care
• Cancer treatment

However, the policy may impose exclusions, limits or waiting periods.

NAIC recommends checking exactly which conditions and treatments are covered rather than relying only on the plan name.

The Three Common Types of Pet Insurance

NAIC broadly describes three categories of pet insurance products:

Accident-Only

Designed primarily for covered accidental injuries.

Accident & Illness

Provides broader protection for eligible accidents and illnesses.

Wellness/Preventive Coverage

Designed around routine or preventive services and may be offered separately or as an optional component.

The exact benefits vary by insurer and policy.

Step 7: Compare Exclusions

This may be more important than the premium.

An exclusion is something the policy does not cover.

Possible exclusions can include:

• Pre-existing conditions
• Certain hereditary conditions
• Certain congenital conditions
• Preventive care
• Routine dental care
• Elective procedures
• Certain behavioral treatment
• Specific breed-related conditions

NAIC specifically warns consumers to review exclusions because coverage can differ by pet, breed and policy.

Step 8: Understand Pre-Existing Conditions

This is one of the most important parts of a pet insurance comparison.

A pre-existing condition generally refers to a condition or related signs/symptoms that existed before coverage began or during an applicable waiting period, according to the policy’s definition.

But definitions can vary.

For example, imagine:

Your dog had recurring ear problems before purchasing insurance.

Several months later, your dog is diagnosed with a related chronic condition.

The insurer may investigate previous veterinary records when determining whether the condition is pre-existing under the policy.

Do not assume that:

“There was no formal diagnosis, so it cannot be pre-existing.”

The policy language matters.

Step 9: Check Hereditary and Congenital Conditions

This is particularly important for owners of breeds with known health risks.

NAIC notes that many pet insurance companies exclude or limit hereditary or congenital conditions, although coverage varies.

Before buying, search the policy for terms such as:

• Hereditary
• Congenital
• Breed-specific
• Bilateral
• Orthopedic
• Developmental

Then check how the insurer defines them.

Step 10: Compare Waiting Periods

Insurance coverage may not start immediately after enrollment.

There can be separate waiting periods for:

• Accidents
• Illnesses
• Orthopedic conditions
• Specific conditions

NAIC identifies waiting periods as an important part of pet insurance comparison.

Ask the insurer:

When exactly does each type of coverage become effective?

Don’t assume one waiting period applies to everything.

Step 11: Compare the Claim Reimbursement Method

This is one of the most overlooked differences.

Some policies may reimburse based on:

Actual veterinary expenses

The insurer calculates reimbursement from eligible expenses under the policy.

Benefit schedule

The insurer uses a predefined schedule for particular conditions or treatments.

NAIC notes that reimbursement methods can differ between insurers.

This distinction can have a major impact on how much you actually receive after a claim.

Example: Why Reimbursement Method Matters

Imagine a veterinary bill of:

$4,000

A percentage-based policy might calculate reimbursement using the eligible bill after applicable deductible rules.

Another policy could use a benefit schedule that limits reimbursement for a particular treatment.

Therefore:

Never compare reimbursement percentages without understanding the reimbursement formula.

Step 12: Check Whether You Pay the Vet First

Many pet insurance policies work through reimbursement.

That means you may need to:

1. Receive veterinary treatment
2. Pay the veterinarian
3. Submit a claim
4. Wait for processing
5. Receive reimbursement

NAIC notes that many policies require the policyholder to pay the veterinarian and then receive reimbursement, although arrangements can vary.

This creates an important financial question:

Can I afford the veterinary bill while waiting for reimbursement?

Your emergency fund matters even if you have insurance.

Step 13: Check Veterinarian Choice

Some policies allow you to use your veterinarian of choice, while others may have network requirements.

NAIC recommends checking whether you can choose your veterinarian and whether a network applies.

If you regularly use:

• A specialist
• Emergency veterinary hospital
• University veterinary hospital
• Specialty clinic

verify that your preferred provider can be used under the policy.

Step 14: Compare Routine and Preventive Care

Don’t assume a comprehensive accident-and-illness policy automatically covers:

• Vaccinations
• Wellness exams
• Flea prevention
• Routine dental cleaning
• Spaying/neutering
• Other preventive services

Some policies may offer wellness or preventive-care options, but these should be evaluated separately from major medical protection.

Step 15: Check Dental Coverage

Dental coverage can be particularly confusing.

A policy may distinguish between:

Dental illness

and

Accidental dental injury

It may also exclude routine dental cleaning.

If dental care is important to you, read the dental section instead of assuming it is covered.

Step 16: Compare Prescription Coverage

If your pet develops a chronic condition, prescription costs can become a recurring expense.

Check:

• Prescription medication
• Prescription food
• Supplements
• Compounded medication
• Refill restrictions

NAIC specifically recommends asking whether prescription drugs are covered.

Step 17: Compare Age Eligibility

Pet insurance eligibility can vary by insurer.

Some companies may have maximum enrollment ages or other restrictions.

NAIC notes that some companies will not accept pets after a certain age.

Therefore, compare:

• Minimum enrollment age
• Maximum enrollment age
• Whether coverage can continue after enrollment
• How premiums change as pets age

Step 18: Compare How Your Pet’s Age and Breed Affect Pricing

Pet insurance premiums can vary based on:

• Species
• Breed
• Age
• Location
• Coverage
• Deductible

NAIC identifies these as factors that may affect premium pricing.

Therefore, an online “average price” should not be treated as your actual quote.

A Practical Pet Insurance Comparison Table

When comparing real policies, create a table like this:

Feature	Policy A	Policy B	Policy C
Monthly premium	$___	$___	$___
Annual premium	$___	$___	$___
Deductible	$___	$___	$___
Deductible type	Annual/Other	Annual/Other	Annual/Other
Reimbursement	___%	___%	___%
Annual limit	$___	$___	$___
Lifetime limit	$___	$___	$___
Accident coverage	Yes/No	Yes/No	Yes/No
Illness coverage	Yes/No	Yes/No	Yes/No
Cancer coverage	Yes/No	Yes/No	Yes/No
Prescription drugs	Yes/No	Yes/No	Yes/No
Dental coverage	___	___	___
Hereditary conditions	___	___	___
Congenital conditions	___	___	___
Pre-existing conditions	Excluded/Other	Excluded/Other	Excluded/Other
Accident waiting period	___	___	___
Illness waiting period	___	___	___
Orthopedic waiting period	___	___	___
Veterinarian choice	___	___	___
Claim method	___	___	___

This table is far more useful than comparing three advertised monthly prices.

A Simple Way to Score Policies

If you are comparing several policies, you can assign each category a score from 1 to 5.

Example

Category	Weight
Coverage	25%
Exclusions	20%
Deductible	15%
Reimbursement	15%
Annual limit	10%
Waiting periods	5%
Claim process	5%
Premium affordability	5%

The weights are not an industry standard.

They are simply an example of how a consumer can organize a personal comparison.

Your priorities may be different.

For example, if your biggest concern is catastrophic veterinary bills, you may give more weight to:

• Annual limits
• Exclusions
• Reimbursement
• Deductible

How to Compare the Total Cost

Don’t calculate only:

Premium × 12

A better personal budget comparison considers:

Annual premium

Expected deductible exposure

Expected uncovered expenses

Potential out-of-pocket share

For example:

Policy A

Annual premium: $600

Potential deductible: $1,000

Policy B

Annual premium: $900

Potential deductible: $500

The second policy costs more in premiums but may expose you to a different level of out-of-pocket expense during a claim.

Pet Insurance vs. Self-Funding

Insurance is not the only way to manage veterinary risk.

You can also self-fund by building an emergency reserve.

Insurance

You pay a premium to transfer some financial risk.

Self-Funding

You save money and accept the risk of paying veterinary bills yourself.

Hybrid Approach

You use:

Insurance + emergency savings

This can provide two layers of financial protection.

For help estimating an emergency reserve, use our Pet Emergency Fund Calculator.

When Pet Insurance May Be a Good Fit

Pet insurance may be worth considering if:

• A major veterinary bill would create financial hardship
• You prefer predictable recurring costs
• You want protection from catastrophic eligible expenses
• You have a young pet and want to evaluate coverage before future health issues arise
• Your pet’s potential health risks concern you
• You can afford the premium long term

When Self-Funding May Make More Sense

Self-funding may be reasonable if:

• You have substantial emergency savings
• You can comfortably pay a large veterinary bill
• You prefer keeping the money instead of paying premiums
• You understand and accept the financial risk
• Available policies have exclusions that make them less useful for your particular pet

There is no universal answer.

A Special Consideration for Older Pets

If your pet is older, don’t compare price alone.

Check:

• Enrollment eligibility
• Existing medical conditions
• Previous symptoms
• Exclusions
• Premium
• Waiting periods
• Renewal terms

The policy that looks attractive on a comparison website may not be appropriate for your pet after underwriting and exclusions are considered.

A Special Consideration for Young Pets

Young pets may have fewer known medical conditions, but that does not guarantee coverage for every future condition.

Before enrolling, understand:

• Waiting periods
• Exclusions
• Hereditary conditions
• Congenital conditions
• Breed-related limitations
• Preventive-care coverage

A Special Consideration for Breed-Specific Risks

If your pet’s breed is associated with certain health conditions, don’t simply search:

“Best insurance for [breed].”

Instead, identify the relevant health risks and then check whether each policy covers them.

For example:

Breed risk → Relevant condition → Policy wording → Exclusion → Financial exposure

This produces a much more meaningful comparison.

You can also read our guide on Dog Breed Insurance Exclusions for additional context.

Common Pet Insurance Comparison Mistakes

Mistake 1: Choosing the Lowest Premium

A low premium can come with higher out-of-pocket costs.

Mistake 2: Ignoring Exclusions

The policy may exclude the condition you are most concerned about.

Mistake 3: Looking Only at Reimbursement Percentage

90% reimbursement does not tell you what is actually eligible.

Mistake 4: Ignoring the Deductible Structure

Annual and per-condition deductibles can affect claims differently.

Mistake 5: Ignoring Annual Limits

A policy with a low annual limit may provide less catastrophic protection.

Mistake 6: Assuming All Policies Cover Pre-Existing Conditions

Many pet insurance policies exclude them.

Mistake 7: Assuming Routine Care Is Included

Wellness coverage may be separate or optional.

Mistake 8: Comparing Quotes Without Comparing Policy Documents

A quote is not the complete contract.

Questions to Ask Before Buying

Use this checklist when speaking with an insurer.

Coverage

• What accidents are covered?
• What illnesses are covered?
• Is cancer treatment covered?
• Are hereditary conditions covered?
• Are congenital conditions covered?
• Are prescription drugs covered?
• Is dental care covered?
• Are specialist visits covered?

Costs

• What is the premium?
• What is the deductible?
• Is the deductible annual or per incident?
• What reimbursement percentage applies?
• What is the annual limit?
• Is there a lifetime limit?

Restrictions

• How are pre-existing conditions defined?
• Are breed-specific conditions excluded?
• Are there waiting periods?
• Are there age restrictions?
• Are bilateral conditions treated differently?

Claims

• Do I pay the veterinarian first?
• How is reimbursement calculated?
• How long does claim processing normally take?
• Can I choose any veterinarian?
• Is direct payment available?

NAIC recommends asking many of these same questions when evaluating pet insurance.

How Pet Insurance Companies Are Different

The North American pet insurance market includes multiple insurers and product brands, and NAPHIA’s industry data tracks a large majority of written pet health insurance premiums in the U.S. and Canada. NAPHIA reported 7.6 million insured pets in North America at the end of 2025.

This means consumers have multiple products to compare—but it also means that a single “best company” list can quickly become outdated.

For that reason, we recommend comparing specific policy terms, not simply relying on a company ranking.

What About Average Pet Insurance Prices?

Industry averages can help provide context, but they should not be treated as your personal quote.

For example, NAPHIA’s 2025 State of the Industry report reported 2024 U.S. average accident-and-illness premiums of:

• $749.29/year for dogs
• $386.47/year for cats

Those figures are industry averages and not a prediction of what a particular pet owner will pay. Premiums can vary based on factors such as breed, age, location and coverage selection.

Because pricing changes, always obtain a current quote before making a decision.

A Better Way to Compare Three Policies

Imagine you receive three quotes.

Policy A

Low premium

But:

• High deductible
• Lower reimbursement
• Low annual limit

Policy B

Medium premium

But:

• Moderate deductible
• Stronger reimbursement
• Higher annual limit

Policy C

High premium

But:

• Low deductible
• High reimbursement
• High annual limit

The correct choice depends on what you are trying to protect against.

If your priority is:

Lowest monthly cost

Policy A may deserve consideration.

Balanced protection

Policy B may be attractive.

Maximum financial protection

Policy C may be worth considering if the premium fits your budget.

These are hypothetical examples—not recommendations for any specific insurer.

Our Recommended Pet Insurance Comparison Method

At PetPolicyFinance, we recommend using this sequence:

Step 1

Get quotes for your actual pet.

Step 2

Write down the annual premium.

Step 3

Write down the deductible.

Step 4

Write down the reimbursement percentage.

Step 5

Write down the annual/lifetime limits.

Step 6

Read the exclusions.

Step 7

Check pre-existing-condition wording.

Step 8

Check waiting periods.

Step 9

Check claim reimbursement methodology.

Step 10

Compare the policy against your emergency savings.

Step 11

Read the actual policy documents before purchasing.

This approach is much more reliable than selecting a policy from a “top 10” list based only on price.

Final Pet Insurance Comparison Checklist

Before you buy, make sure you can answer all of these:

• What is the annual premium?
• What is the deductible?
• How is the deductible applied?
• What reimbursement percentage applies?
• How is reimbursement calculated?
• What is the annual limit?
• Is there a lifetime or per-condition limit?
• What accidents are covered?
• What illnesses are covered?
• What conditions are excluded?
• How are pre-existing conditions defined?
• Are hereditary conditions covered?
• Are congenital conditions covered?
• What are the waiting periods?
• Is dental care covered?
• Are prescription medications covered?
• Is routine preventive care covered?
• Can I choose my veterinarian?
• Do I pay the veterinarian first?
• How long can claims take?
• Are there age restrictions?
• Can I afford the premium long term?

If you cannot answer these questions, you are not ready to compare the policies properly.

Frequently Asked Questions

What is the most important factor when comparing pet insurance?

There is no single most important factor. For many owners, the combination of coverage, exclusions, deductible, reimbursement and annual limit matters more than the premium alone.

Is a cheaper pet insurance policy better?

Not necessarily. A lower premium may come with a higher deductible, lower reimbursement, smaller limits or more exclusions.

Should I choose 70%, 80%, or 90% reimbursement?

That depends on your budget and how much of a veterinary bill you want the policy to potentially reimburse. Compare the reimbursement percentage together with the deductible, premium, limits and exclusions.

What should I look for in pet insurance exclusions?

Pay particular attention to pre-existing, hereditary, congenital, breed-related, dental, preventive, behavioral and elective-treatment exclusions.

Does pet insurance cover pre-existing conditions?

Many pet insurance policies exclude pre-existing conditions, but definitions and policy terms vary. Read the specific policy before purchasing.

Does pet insurance cover routine veterinary care?

Not necessarily. Some policies exclude routine preventive care, while some insurers offer wellness coverage separately or as an optional feature.

Can I use any veterinarian?

It depends on the policy. Some plans allow broad veterinarian choice, while others may have network requirements. Check the policy before enrolling.

Do I pay the veterinarian first?

Often, yes. Many pet insurance products operate through reimbursement, although payment arrangements vary.

How much does pet insurance cost?

There is no single price. Premiums vary by factors including pet type, breed, age, location, coverage and deductible.

Is pet insurance worth it?

It can be, particularly if a major veterinary expense would create financial hardship. But the answer depends on your pet, policy terms, budget and ability to self-fund veterinary care.

Bottom Line

The best pet insurance policy is not necessarily the cheapest one or the one with the highest reimbursement percentage.

A good comparison looks at the complete financial picture:

Premium

→ Deductible

→ Reimbursement

→ Annual/Lifetime Limits

→ Coverage

→ Exclusions

→ Pre-existing Conditions

→ Waiting Periods

→ Claim Method

→ Your Emergency Savings

The goal is not to find a policy that guarantees you will receive more money than you pay in premiums.

The goal is to find coverage that provides a reasonable level of financial protection for the risks you actually care about—and that you can afford to maintain.

For additional planning, use our Pet Emergency Fund Calculator to estimate how much cash you may want available for unexpected expenses.

You can also review our Pet Ownership Cost Calculator to estimate broader annual pet expenses.

Sources & Research Methodology

National Association of Insurance Commissioners (NAIC)

NAIC’s current Pet Insurance topic page explains the major types of pet insurance, common exclusions, deductibles, payment limits, waiting periods and factors affecting premiums.

NAIC’s consumer guidance recommends comparing covered conditions, pre-existing conditions, exclusions, reimbursement, veterinarian networks, deductibles, waiting periods and claim processing before purchasing a policy.

NAIC’s regulator guidance also highlights the importance of understanding whether deductibles are annual or per incident, how reimbursement is calculated, what limits apply and how pre-existing conditions are treated.

North American Pet Health Insurance Association (NAPHIA)

NAPHIA publishes industry data covering the North American pet health insurance marketplace. Its 2026 industry report states that 7.6 million pets were insured in North America at the end of 2025.

NAPHIA’s 2025 report provides 2024 premium averages and other industry statistics used only as market context in this article—not as individual price predictions.

Editorial Disclaimer

PetPolicyFinance.com is an independent educational website. We are not an insurance company, insurance broker, veterinarian, financial adviser or law firm.

Insurance products, premiums, coverage, exclusions, waiting periods, eligibility requirements and consumer protections can change.

Always verify current information directly with the insurer and, where appropriate, your state insurance department before purchasing a policy.

This article does not recommend any particular insurance company or policy.

Author: Harry Mills
Last Reviewed: August 2026