Monthly premium is a major concern of pet parents who are trying to make the decision about pet insurance. In addition to the decision whether you need pet insurance in general, you also need to make many decisions about what type of coverage is right for you.

There are 7 main factors contributing to the amount of your monthly premium:

1.      Type of Coverage

2.      Your Pet's Breed

3.      Your Pet's Age

4.      Your Zip Code

5.      Annual Limit

6.      Reimbursement Amount

7.      Deductible

 

1. Type of Coverage

You can select Basic, Comprehensive, or Comprehensive with Wellness Plan coverage. Naturally, the more coverage you purchase, the more expensive it will be. Click here for details on coverage option.

 

2. Pet's Breed

Mixed breeds and mutts get the cheapest pet insurance rates. The profile of the cheapest dog or cat to insure is a small, spayed, female mixed breed. Purebreds, short-nosed dogs and large dog plans are the most expensive. Diseases and conditions such as cancer and orthopedic problems are often genetic.

 

3. Pet's Age

You can start insurance for your dog or cat between a minimum and a maximum age. Minimum age is usually 8 weeks old, and maximum is around 14 years old. However, some insurance providers will let you start a new policy for your pet at any age. The very young and older pets will have higher premiums. Expect your premiums to increase as your pet becomes older.

 

4. Zip Code

Cost of veterinary care varies and is higher in the areas where cost of living is higher overall. The same treatment will cost you more or less depending on where you live.

 

5. Annual Limit

It is up to you whether you would like to set annual limit or not. Most pet insurance providers allow you to set annual limit at $5,000, $10,000, $15,000 or $20,000. The higher the limit, the higher the premium. Unlimited coverage is also an option with the highest required monthly premium.

 

6. Reimbursement and Co-Insurance Amount

Reimbursement is set as a percentage of your vet bill. The options usually are 70%, 80% or 90%. FIGO and PetBest now offer 100% option. Co-insurance is the opposite of reimbersement percent - i.e. 70% reimbersement and 30% co-insurance are the same.

 

7. Deductible

Options for annual deductible amount are $100, $250, $500, and $1000. The higher your deductible, the lower your monthly premiums. Deductible is a perfect example of the tradeoffs one should concider when chosing pet insurance. Higher deductible will save you money on premiums. However, you would have to make sure that you have savings or credit to cover it at all times.