Pet Insurance Is Exponentially Developing In The USA - All About Dental, Pet, Health and Motorcycle Insurance

Pet Insurance Is Exponentially Developing In The USA

Meta: The cost of veterinary care for pets is increasingly expensive, making many Americans flock to insurance companies to buy insurance for their pets. Why is that? Read our article to explore!

Every three US households on average, there are two households (about 85 million homes) feeding pets, and the cost of raising these lovely housemates is not cheap.

Last year, Americans spent a total of $ 17 billion to take care of veterinary medicine, according to data from the American Pet Products Association. Each dog costs $ 257 a month for routine health care services; this figure is $ 182 for cats.

Pet insurance revenue reaches more than the US $ 1 billion

Accidents or illnesses can cost them more than ever. And to offset this cost, more and more families in the United States rely on pet insurance packages. The number of insured pets in the US also increased sharply, to 1.83 million last year, an increase of 16% compared to 2016.

About 12 companies are selling pet insurance in the US and leading the market are Nationwide, Trupanion and Healthy Paws respectively. These companies are relatively new faces in the pet insurance market.

In 2008, Trupanion started selling pet insurance, while the Healthy Paws was founded in 2010. In 2009, Nationwide began to jump into this field after acquiring Veterinary Pet Insurance.

Americans buy insurance for dogs most

Trupanion is insuring 472,000 pets and charging premiums based on breeds and their age like other pet insurance companies. Insurance companies primarily focus on the two closest "friends" of human: dogs and cats, although they also provide insurance policies for many other types of pets.

There are many opportunities for growth

The pet insurance market is still far behind in value compared to the auto, housing, and health insurance markets. But it is growing fast.

Last year, the US pet insurance sales increased by 23%, according to reports of the North American Pet Health Insurance Association. The figure of 1.83 million insured pets is equivalent to only 1% of the number of dogs and cats being fed in the US, so insurance companies expect the growth momentum to continue.

In 2017, Americans feed 94.2 million cats and 89.7 million dogs, accounting for nearly 50% of 393 million pets raised in the US if including birds, reptiles and other animals such as pigs, horse.

Pet insurance packages help offset veterinary care costs as a hybrid product. Like health insurance, these insurance packages often pay for accidents and illnesses, but because pets are owned, technically it is also considered a form of property insurance.

This type is similar to home and car insurance, but there is a difference. With auto insurance, drivers don't expect accidents which require to be hospitalized, but pet owners will bring pets to the vet every time they meet health problem.

Premiums can be up to $ 150 each month

In general, the monthly premium for pets in the US ranges from $ 25-150 per month depending on the level of compensation exemption accepted by the insurance buyer (the cost of pet care is exempt from compensation).

A lesson the insurance company draws after years of business is that different pet breeds have different health problems.

Pet insurance will worth your money!

Such information along with the pet's habitat information help companies set premiums. For example, the insurance package for a hybrid dog in Manhattan and New York will cost $ 76 per month, but this number in the city of Mobile, Alabama is only $ 34 per month.

One reason the pet insurance market has flourished is that veterinary treatment services are increasingly expensive.

For example, a ruptured front ligament at a dog's leg is often accompanied by a typical symptom of the shrinking leg. The cost of the old treatment plan for this situation is $ 1,200, but the cost of high treatment, helping the dog's legs fully recover, can be up to $ 4,500.

Further notes

The older the cat is, the costlier he or she is to insure. This is just because older cats often grow more health problems, such as kidney issues, cancer, and arthritis. When the pet has never been insured, any health condition your old cat won’t be covered, so it won’t make any financial sense to insure him.

In reality, a lot of agencies would age out the cats after a particular age and then won’t provide any coverage at any price. But if the young adult and middle-aged cat hasn’t experienced any health problem till today, you can still find a policy with a premium that won’t be too high. You would then own peace of mind that if your cat gets ill or injured, then he or she will get coverage

Time to say goodbye

Through the information above, we can see that American people love their pets very much. They always take care of their pets' health and make sure they are fully supported by insurance.

Hopefully, after reading this article, you have a clear understanding of why pet insurance has become so popular and necessary in the US as well as the future benefits that pet insurance companies can achieve.