Pet insurance, while capable of saving pet owners thousands of dollars over their pets‘ lifetimes, is not a cheap investment. The District of Columbia ranks as the second most expensive region for pet insurance, averaging $59 per month, second only to Connecticut, according to MarketWatch Guides.
State regulations play a significant role in the cost of pet insurance, as they can either increase premiums or limit the liabilities of insurance providers.
However, pet insurance does have its limitations. It typically does not cover pre-existing conditions or certain elective procedures. “Elective procedures, such as declawing, ear cropping, or tail docking, are usually not considered medically necessary and are therefore not covered by pet insurance,” explained Dayna Drake, a researcher at MarketWatch Guides.
The cost of insuring a pet also varies by breed, with some breeds being particularly expensive to insure. “French bulldogs are the most expensive dogs in the U.S. to insure, with an annual cost of slightly over $1,000 and a lifetime cost exceeding $16,000,” Drake noted. Other costly breeds include Chihuahuas, golden retrievers, Labradors, and German shepherds. Purebred dogs, in general, tend to have more genetic and medical issues, which can drive up insurance costs, and obese dogs also incur higher premiums.
Based on data from over 17,000 quotes compiled by MarketWatch Guides, the average annual cost of insuring a dog is $720, while for cats it is $384.
One of the most effective ways to reduce pet insurance costs is to enroll pets at a young age, ideally when they are puppies or kittens. MarketWatch Guides also suggests that premiums can be minimized by adjusting annual limits, deductibles, and reimbursement rates.
As of 2023, nearly 5.7 million dogs and cats in North America were insured, according to the North American Pet Health Insurance Association. The number of insured pets has grown significantly over the past four years.
The pet insurance industry was valued at $8.6 billion in 2022 and is projected to reach $16 billion by 2032, according to Forbes.
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