Why Is Pet Insurance Expensive?

Pet insurance can feel expensive because veterinary care itself is costly and rising—and policies need to cover unpredictable, high-risk events.
Source: BestPetPlanGuide.com

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Vet costs have increased by over 10% annually in recent years, and modern treatments like MRIs, chemotherapy, and orthopedic surgery can cost $5,000+. Pet insurance reflects these realities, pricing in risk and inflation.

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Other factors that increase your premium:

• Older pets cost more to insure

• Purebred animals are prone to hereditary issues

• Geographic regions with high vet costs impact pricing

 

Insurers also factor in administration costs, marketing, fraud prevention, and profit margins. While accident-only plans are relatively inexpensive, comprehensive plans with high reimbursement rates and wellness add-ons cost significantly more.

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If your pet has a history of health issues or if you choose a low deductible/high reimbursement model, your premium could easily exceed $80/month.