Key Differences Between Pet and Human Insurances

It would be easy to assume that pet health and human health insurances were the same things, with their similar names. They’re both used to cover medical emergencies, after all, and they both usually cost per month. That’s where the similarities stop between these two very different types of coverage, though. 

Let’s take a closer look at why. 

Pet Insurance vs Human Insurance: What’s the Difference?

Pet and human insurances are not the same. They don’t work in the same ways, and they don’t cover the same things. In essence, the two types of insurance are really designed for two different purposes. 

Here are seven key differences between pet and human insurances: 

1: Health Insurance Purpose

The average vet bill for a cat isn’t easy to figure out because each cat and each case is different. A checkup each year can cost you anywhere from $300 to $600, and then there’s microchipping (around $50), vaccinations ($100 to $150), flea and tick treatments (100 to $200), deworming ($50 to $150), and neutering or spaying ($300 to $800). 

Not every vet bill will be covered by your insurance, of course, but in some cases, you will not need to put your hand in your pocket to foot the bill. Pet insurance is designed to cover you for unexpected pet emergencies that you would otherwise find difficult to pay for. 

It usually comes in two forms: 

• Coverage for accidents – basic level
• Coverage for accidents and illness – more comprehensive cover

Human health insurance works slightly differently. It is there to cover the cost of a medical bill if you are faced with a medical emergency, but it is also designed to prevent such emergencies from happening, too. Pet health insurance doesn’t cover that as part of a basic package (in most cases). 

2: Cost of Insurance

Pet insurance is considerably cheaper than human insurance in almost every case. Monthly premiums for single human insurance can run into several hundred dollars, but it is quite rare for single pet insurance premiums to reach $100. 

3: Preventative Care Coverage

Human health insurance usually covers preventative care, such as vaccinations. Many pet insurances do not offer cover for this care as standard. The following preventative treatments will likely not be covered by basic health insurance for pets:

• Vaccinations
• Spaying or neutering
• Worming treatments
• Flea treatments
• Microchipping

Some insurance companies will offer ‘add-ons’ (also referred to as ‘riders’) to offset some of the costs associated with preventative pet care, but these come with higher premiums. 

4: Pre-Existing Conditions Coverage

In most human insurance policies, pre-existing medical conditions are covered (to some degree). With pet insurance policies, however, this is often not the case. With some, you are not covered for existing conditions at all, while others will require an ‘add-on’ to your existing premium. 

5: Lifetime Limits

If you check your pet insurance policy, or the fine print of the policy you’re thinking of buying, you may find that there is a lifetime limit, or even an annual limit, on how much you can claim for your pet’s health and medical care. This is not the case with human health insurances. 

6: Treatment Locations

With health insurance for humans, you’re often only able to pick from a small circle or network of healthcare providers. If you receive treatment out of that network, you will not usually be covered. 

With pet insurance, on the other hand, there isn’t usually a preferred or mandatory network of vets or pet healthcare providers; you are free to choose your favorite vet. Provided the vet is licensed and qualified, and the invoice is sent to the insurance company afterwards, they will usually not pick problems with the healthcare provider you have chosen. 

7: Payout Methods

Linked to the network of healthcare providers, the claim pay-out for health insurance is different from pet insurance. Because health insurance plans require you to receive treatment for specific providers that they approve, they pay that provider directly. 

With pet insurance, however, this is usually not the case; although, more and more insurance companies now offer different payout methods. Once you have taken your furry companion to the vet, they have received healthcare, and you then receive a bill, you then pay the bill. It is then your duty to send the bill plus other applicable documents to your insurance provider for reimbursement. 

Because of this, you will initially be out of pocket for your pet’s medical care. 

Pet and Human Insurance Alternatives

There are a few more different alternatives to human health insurance than there are for pets. These include applying for health discount cards, high-interest savings accounts, an industry-specific health association plan, short-term health insurance, or cost-sharing schemes and programs. 

For pets, different alternatives for health insurance include emergency fund-style services, using a credit card, self-insuring (savings account), vet discount schemes, or community cost-sharing. 

In Conclusion

Pet health and human health insurance policies are similar in some ways, but very different in others. These differences almost make them incomparable. As always, it’s best to do plenty of research before investing in health care for both you and your precious pets. The ‘popular’ way isn’t always the best way for you.