Consumers have for much of the year been fighting off increasing prices for everyday goods and services as inflation quietly eats its way into their disposable incomes. For the first time in nearly forty years, inflation hit an eye-watering 9.1% in June 2022, seeing the largest jump in consumer prices since the early 1980s.

Inflation and broader macroeconomic problems have affected nearly every business sector, including the veterinary space. General lab testing and vendor fees have increased by more than 12% this year, leaving the Veterinary Services Price Index again outpacing the Consumer Price Index (CPI).

This occurrence is nothing new, as it was recorded back in 2016, that veterinary costs rose by more than 25 percentage points in one year, seeing the biggest jump compared to other basic goods and services.

What’s more concerning is the 212.70% increase in veterinary service and prices between 1997 and 2022 according to the U.S. Bureau of Labor Statistics. In dollars, this equals more than a $42.54 difference in value to veterinary bills.

It’s no secret that pet owners will only see veterinary bills increase over the coming months, as vendor costs and the price of basic goods and services keep climbing.

Though the thought of pet insurance is not something completely new, nor is it something that every pet owner in the U.S. considers regularly. Like regular consumer health and life insurance, pet insurance exists to help reduce the cost burden, create peace of mind during unplanned medical emergencies, and create a tailored insurance experience based on a policy assessment.

Despite life and health insurance playing a key role in our everyday lives, for pet owners, the right policy or pet insurance can make all the difference when faced with unforeseen medical emergencies that can quickly rack up a hefty veterinary bill.

While there are several pet insurance retailers in the market, buying the right insurance has become an increasing challenge for many pet owners as there are several factors to consider beforehand.

Pet age

Like with basic health insurance, the age of your pet can influence the type of insurance policy products and services you have access to. Often pet insurance retailers have an age limit on the pets consumers can insure, as older pets are often more prone to require medical treatment.

In some cases, insurers will only have policies available for pets under 8 or 9 years. There are cases where you may find insurance for older pets, but this is often rare and can cost a lot more.

Medical history

It’s hard to understand your pets' medical conditions or needs if you don’t necessarily know what might be wrong with them. The best advice is to ask a vet to conduct a routine check-up on your pet. This way you will know exactly whether your pet is in a healthy condition, or requires any additional medical attention.

The healthier your pet the better, as this would mean that your policy premiums will be substantially lower. If your pet has any existing medical conditions, you will need to share this with your provider to ensure that this will be covered and included in your policy.

Vet fees coverage

Not all policies or coverage are the same, and in some cases, there’s a high chance that certain vet fees may be excluded from your policy. This would generally also depend on the type of insurance policy you take out, as smaller policies tend to have fewer products available.

Typically a policy may only cover a certain amount or portion of the vet bill. It’s important to consider that in some cases, a policy may only cover the cost of vet costs on the condition or treatment your pet may be receiving.

Type of Insurance

There are different types of insurance that you can take out for your pet, and depending on your pet’s age, its breed, or even in which state you live, you may have several options available to choose from.

The first is lifetime pet insurance, which covers the entire stretch of your pet. A lifetime policy is often more desirable at first, but annual premiums tend to increase as your pet gets older.

A second option would be an annual or 12-month time-limited policy, where you can pay for 12 months, and once the annual coverage has been reached you can decide to either cancel or switch to a cheaper policy.

Another option is the accident-only plan, which only covers basic procedures and accidents. This is often the cheapest and most financially affordable option but excludes your pet from more premium products and services.

The fourth option is the fixed sum, which provides coverage at a fixed rate/sum to help treat illness or injury for the duration of the policy. These plans are also more affordable, but the product benefits may be limited depending on your insurance provider.

Additional products or services

As the pet insurance market grows, so has the type of products and services that come along with it. In recent years, some insurers have been able to add different benefits, at additional costs, to help give pet owners more peace of mind.

New services include the loss or theft of your pet, and may often cover the pet’s purchase price. There may also be a contribution from your insurance company to help pay towards advertising your lost pet or cover the reward costs for its recovery.

There is also cover for behavioral problems, liability, cover, death, injury or illness, and kennel fees. All of these benefits can come included in your pet insurance policy, depending on your policy, or it may be added on top of your existing plan for an additional cost.

The takeaway

Not all pet owners will consider the importance of pet insurance at first, but for those of us who do it’s important to take note of the several factors and elements that can influence the cost of annual or monthly premiums.