Is pet insurance worth it? Find your break-even vet bill

How the math works

Most plans reimburse you after you pay the vet. The plan subtracts the deductible from covered bills, pays its reimbursement rate on the rest, and stops at the annual limit. The break-even bill is where what the plan pays equals what you paid in premiums: deductible + yearly premiums ÷ reimbursement rate.

Example: $62 a month ($744 a year), a $250 deductible and 90% reimbursement break even at about $1,077 of covered bills in a year. Below that, you'd have been better off paying the vet directly that year.

What the calculator can't see

Pre-existing conditions are generally excluded. Waiting periods mean early bills may not count. Routine care, dental disease, hereditary conditions and exam fees may or may not be covered. Some deductibles apply per condition rather than per year. Premiums usually rise as your pet ages. Read the sample policy before you buy. Our pet insurance guide lists the questions to ask.

How to use the result

Insurance is protection against a bill you couldn't comfortably pay, not an investment. On average, insurers collect more in premiums than they pay out, which is how all insurance works. Try a big number in the vet bills box, like $5,000 or $10,000, to see what the plan would cover in a bad year. If you could cover that from savings, insurance matters less. If you couldn't, it may be worth it even with the premiums.

Questions