Pets bring plenty of surprises into our lives. Some are welcome. Others, like a sudden accident, illness, or emergency trip to the veterinarian, can be stressful and expensive.
Veterinary costs can create difficult decisions for pet parents. Fifty-two percent of pet parents have skipped or declined veterinary care, and 71% identify cost as the primary barrier to care.¹
Pet insurance can’t prevent an accident or illness, but it can help make veterinary expenses more manageable when your pet gets hurt or sick. Understanding how coverage works before you need it can help you decide whether pet insurance is right for your pet and your budget.
Key Takeaways
- Pet insurance can help make veterinary expenses more manageable by reimbursing eligible costs for covered accidents and illnesses.
- Getting coverage before your pet develops an illness or injury can help reduce the chance that a future condition will be considered pre-existing.
- When comparing policies, look closely at covered care, deductibles, reimbursement percentages, annual limits, waiting periods, exclusions, and the claims process.
- Embrace Pet Insurance offers nose-to-tail accident and illness coverage, the freedom to visit any licensed veterinarian, and easy digital claims submission.
What Is Pet Insurance?
Pet insurance helps reimburse pet parents for veterinary expenses associated with covered conditions. Depending on the policy, coverage may be available for accidents, illnesses, or both.
Pet insurance is primarily designed to help with unexpected veterinary care rather than every cost associated with owning a pet. Covered conditions, treatments, and services vary by policy, so it is important to understand what is included and excluded before enrolling.
How Does Pet Insurance Work?
Pet insurance usually works differently from human health insurance. Pet parents typically pay the veterinarian directly and submit a claim to the insurance provider.
If the expense is for a covered condition, the provider reimburses a percentage of the cost based on the policy’s terms. The amount reimbursed generally depends on:
- The deductible
- The reimbursement percentage
- The annual reimbursement limit
- Whether the condition and treatment are eligible for coverage
- Applicable waiting periods and exclusions
Why Is Pet Insurance Worth Considering?
Even the most careful pet parents can’t predict when an accident or illness will happen. An unexpected health issue may require diagnostic testing, medication, emergency treatment, surgery, hospitalization, or ongoing care.
Without a financial plan, those costs can add pressure to an already stressful moment. Pet insurance can help reimburse expenses for covered conditions, giving you another way to prepare for the costs that can come with caring for a sick or injured pet.
A useful question to ask is:
If your pet suddenly needed $1,000 or more in veterinary care, would you feel prepared to cover it?
If the answer is no, pet insurance is likely a valuable addition to your financial plan.
What Can Pet Insurance Help Cover?
Coverage varies by provider and policy, but accident and illness plans can help reimburse eligible veterinary expenses for care such as:
- Accidents and illnesses
- Emergency veterinary visits and specialist care
- Diagnostic testing, surgery, and hospitalization
- Chronic, hereditary, and dental illnesses
- Cancer treatment
- Rehabilitation and complementary therapies, such as acupuncture
Some providers also offer accident-only policies, which generally focus on eligible injuries caused by accidents, such as broken bones.
What Should You Compare in a Pet Insurance Policy?
The right policy depends on your pet’s needs, your household budget, and the amount of financial risk you are comfortable carrying.
As you compare your options, consider:
- Eligible care: Review the accidents, illnesses, treatments, and services included in the policy.
- Deductible and reimbursement amount: Consider how these choices affect your premium and potential out-of-pocket expenses.
- Reimbursement limit: Look at how much the policy may reimburse during a policy year.
- Waiting periods and exclusions: Pay particular attention to pre-existing conditions, prescription medications, dental care, and age restrictions.
- Claims experience: Review how claims are submitted, what documentation is required, and how reimbursement is delivered.
Reading a sample policy can provide a more complete picture than relying on a plan name or short coverage summary.
Why Explore Embrace Pet Insurance?
AIS works with Embrace Pet Insurance because it offers broad coverage designed to help pet parents prepare for unexpected veterinary expenses.
- Nose-to-tail accident and illness coverage: Get reimbursed for eligible veterinary costs related to accidents, illnesses, chronic and hereditary conditions, cancer treatment, dental illnesses*, behavioral care, and complementary therapies like acupuncture and chiropractic care.
- Freedom to choose your vet: Visit any licensed veterinarian, emergency hospital, or specialist in the United States, with no provider network or referral list to navigate.
- Easy claims submission: Submit claims online or through the app, with more than 90% of claims paid within 10 days.²
Ready to see what coverage could look like for your dog or cat?
Frequently Asked Questions About Pet Insurance
Is pet insurance worth it for a healthy pet?
A healthy pet is a great candidate for insurance because coverage is intended for accidents and illnesses that occur after enrollment and applicable waiting periods.
Pet insurance generally does not cover pre-existing conditions. Exploring coverage before your pet shows signs or symptoms may reduce the likelihood that an insurer will classify a future condition as pre-existing.
Does pet insurance cover pre-existing conditions?
Pet insurance generally does not cover conditions that began or showed symptoms before coverage started. How pet insurance providers determine what is considered a pre-existing condition can vary.
Embrace Pet Insurance distinguishes between certain curable conditions and pre-existing conditions. Some exclusions associated with curable conditions may expire if the pet remains symptom-free and treatment-free for the period specified in the policy.
Can I use my current veterinarian?
One of the ways pet insurance differs from human health insurance is that there are generally no networks to worry about.
Embrace Pet Insurance, for example, allows pet parents to use any licensed veterinarian, emergency hospital, or specialist in the United States without a veterinary network.
Does pet insurance cover routine care?
Standard accident and illness insurance generally focuses on expenses associated with unexpected accidents and illnesses. Routine care, such as vaccines and wellness visits, is typically not included.
Consider a separate routine-care product if you want help budgeting for eligible preventive expenses.
Prepare Before the Unexpected
Don’t wait until something happens to your pet to wish you had pet insurance. Coverage won’t prevent health issues or pay every veterinary expense, but you can use it to manage eligible bills for conditions your policy covers if your pet becomes ill or suffers an injury.
Pets rely on us for everything from meals to medical care. Exploring coverage before you need it is one more way to prepare for the unexpected moments that can come with loving a pet.
Sources and Disclosures
- Hrynowski, Z., and Lall, J. “52% of U.S. Pet Owners Skipped or Declined Veterinary Care.” Gallup, April 16, 2025.
- Based on Embrace internal claims data from 2025.
*Dental illness can be applied for up to $1,000 per policy term/year for covered conditions.
Waiting periods, annual deductibles, reimbursement percentages, benefit limits, and exclusions may apply. Products, schedules, discounts, and rates may vary and are subject to change. For full terms and conditions, visit Embrace Pet Insurance Terms and Conditions.
Pet Health Insurance is administered by Embrace Pet Insurance Agency, LLC (Lic#0G89328) and is underwritten by one of the licensed insurers of American Modern Insurance Group, Inc., including American Modern Home Insurance Company d/b/a in CA as American Modern Insurance Company (NAIC #0361-23469) and American Southern Home Insurance Company (Lic. No 2222-8). Coverage is subject to policy terms, conditions, limitations, exclusions, underwriting review, and approval, and may not be available for all risks or in all states. Rates and discounts vary, are determined by many factors, and are subject to change. For full terms and conditions, visit Embrace Pet Insurance Terms and Conditions. © 2026 American Modern Insurance Group, Inc. Premiums are based on the current age of your pet. Premium may increase due to the age of your pet at renewal. Initial premiums may be impacted by the species or breed of your pet. Premium may change based on your home address.
The information in this article is obtained from various sources and offered for educational purposes only. Furthermore, it should not replace the advice of a qualified professional. The definitions, terms, and coverage in a given policy may be different than those suggested here. No warranty or appropriateness for a specific purpose is expressed or implied. The opinions expressed by guest bloggers are theirs alone and do not reflect the opinions of AIS Management LLC, any subsidiary or affiliate of the same, or any employee thereof. We are not responsible for the accuracy of any of the information supplied by the guest bloggers.
