Getting Pet Insurance for the First Time in 2024? 3 Pitfalls to Avoid

The North American Pet Health Insurance Association reports that the first U.S. pet insurance policy was issued in 1982 for Lassie, the collie of TV fame. As of the end of 2022, an estimated 4.8 million U.S. pets were insured.

You may be in a position where you're looking at pet insurance for the first time in 2024. Maybe you only recently adopted a pet. Or maybe you've gone without pet insurance for quite some time but no longer want to take that risk.

When buying pet insurance for the first time, you might accidentally make a few mistakes. Aim to avoid these three pitfalls if you're new to the world of pet insurance.

1. Forgetting about your deductible

The whole purpose of pet insurance is to have another party be responsible, financially speaking, for your pet's emergency care. But remember, just as it's common for human health insurers to impose an annual deductible on enrollees, so too is it common for pet insurance companies to do the same. That's something to pay attention to in the course of looking for insurance and using your new policy once it's in place.

At the very least, you should make sure to sock enough money away in savings to cover your pet insurance deductible, whether it's $250, $500, or another amount. If your pet needs a $2,000 surgery and your policy has a $250 deductible, you're on the hook for that $250 no matter what. So it's important to have that money on hand.

2. Forgoing an emergency fund once you have your policy in place

You might assume that you can stop worrying about building an emergency fund for pet care once you have an insurance policy. But one thing you should know is that unlike human health insurance, where you commonly just pay a copay or deductible and the rest is billed to your insurer from the start, with pet insurance, you often have to cover the full cost of your pet's care upfront.

From there, you generally submit a claim to get reimbursed (or the provider you see does it for you). But that could take weeks or longer. So it's important to have money in the bank in case you have to front the money for a service your pet insurance company will ultimately cover.

3. Failing to shop around

The process of finding a good pet insurance policy can be time-consuming. But don't let that stop you from doing your research.

Take the time to talk to different insurers and see what your coverage options entail. Some extra time could result in a lot of savings.

And remember, when it comes to buying pet insurance, you don't just want to look at premium costs and deductibles. Rather, see what you're getting for your money.

Different policies offer differing levels of coverage. It may be that a policy costing you $49 a month in premiums will only cover up to $6,000 a year in treatments for certain ailments, whereas a policy costing $59 a month will cover up to $9,000.

Getting pet insurance is important. If you're gearing up to do it for the first time, keep these points in mind so you can plan well financially and put the right coverage in place for your furry companion.