Thinking About Pet Insurance? The Best Time to Get It Is Before You Need It

This article was first published on NerdWallet.com.

It makes sense to want the same kind of protection for a pet that you would want for a family member. Pets are part of the household, after all.

But anyone who has looked into pet insurance lately may have been startled by the price. Is it worth spending hundreds of dollars a year on coverage you may never use? For many pet owners, the answer is yes — even if the animal seems young and healthy. One major reason is how pre-existing conditions are handled.

A pre-existing condition is an illness or injury that shows signs before a pet insurance policy begins. In most cases, insurers do not cover those conditions.

Dr. Rebecca Greenstein, chief veterinarian at Kleinburg Veterinary Hospital and a veterinary expert for rover.com, says claim denials tied to pre-existing conditions appear to be increasing. “The whole point of insurance is you want broad spectrum coverage for a variety of things,” she says. “By the time they're excluding major organ systems and anything related to that, you may be paying monthly for coverage that doesn't actually help you when you need to go make a claim.”

If you are considering pet insurance, buying it before your pet needs treatment is usually the safest approach.

Pre-existing conditions can shape what gets covered

A pet’s medical history can determine which treatments and procedures will be covered later on.

For example, if a dog has a history of allergies, an insurer will usually not pay for allergy shots or similar care if the policy was bought after symptoms began. According to Dr. Michael Goldstein, medical director at Billerica Veterinary Hospital and Thrive Pet Healthcare, that exclusion may also extend to related issues such as itching or ear infections.

He points to a dog that visits the vet for a hotspot one year and an ear infection the next. If insurance was purchased between those visits, the company may reject the claim because both problems could stem from the same underlying allergies.

The best way to avoid that kind of problem is to buy coverage while a pet is still young and before symptoms appear.

Why going without coverage can be costly

It can be hard to know whether pet insurance will pay off over time. The most common plans cover accidents and illnesses. According to the North American Pet Health Insurance Association, the average annual premium is $836 for dogs and $435 for cats. That means you could pay for years before facing a major surgery or long-term illness.

No one can predict whether a pet will stay healthy or develop expensive medical problems. Still, you can estimate the possible value of insurance by looking at common conditions that appear with age and how much they cost to treat.

Goldstein notes that younger cats often have few health concerns, but older cats commonly develop chronic kidney disease. In cats older than 10, the Cornell Feline Health Center estimates that as many as 40% may have this condition. Annual treatment can cost more than $1,200.

Another example is atopic dermatitis caused by skin allergies, which the Cornell Richard P. Riney Canine Health Center says affects as many as 15% of dogs. A single vet visit for the condition can cost $250 or more, and ongoing treatment can become expensive over a pet’s lifetime.

Costs can rise even faster if chronic problems lead to surgery. Hip dysplasia is one example: this genetic disorder can cause arthritis and pain in large-breed dogs, and surgery may cost as much as $10,000 depending on the procedure.

Many insurance plans will cover hip dysplasia treatment, including surgery, as long as it is not pre-existing. But some policies impose waiting periods of six to 12 months for orthopedic conditions like hip dysplasia. If symptoms begin during that window, the condition may then be treated as pre-existing. That is another reason to buy coverage earlier rather than later.

Greenstein says the real benefit of insurance is the freedom to choose the best treatment regardless of cost. “It's really tragic when it's a life and death decision that is needed and it's based on someone's financial constraints,” she says. “What is best and what's affordable often are not on the same side of the spectrum.”

If full coverage is out of reach, there are other options

One way to lower the cost of pet insurance is to choose an accident-only plan. This coverage is usually much cheaper, averaging about $190 a year for dogs and $112 for cats, according to NAPHIA. It covers injuries caused by accidents, including wounds, broken bones, and objects or toxins a pet may swallow.

Still, accident-only coverage will not pay for many of the most common vet bills. Lemonade said in an email that illnesses, not injuries, account for most of its claims. In the past year, more than 60% of its pet insurance claims were related to illness, which was twice as many as the next-largest category, preventive care. Nationwide reports a similar pattern, with chronic disease making up a clear majority of its pet insurance claims in 2025.

If you choose accident-only coverage or skip insurance entirely, it is still wise to build a savings cushion for emergencies and illnesses. Having money set aside can help you avoid making care decisions based only on cost.

The article Pet Insurance on Your Mind? Buy It Now, Not Later originally appeared on NerdWallet.