The cheapest insurance will normally cover only accidents (fractures, cracks and cuts, ingestion of foreign bodies, poison). This is the basic level of coverage and do not usually cover illnesses (like diabetes, cancer, infections and ear, skin) or preventive services (eg, annual reviews, booster shots, vaccines, spay / neuter). However, even this basic plan offers significant savings in unexpected medical expenses, and provides the pet owner a little peace.
When price shopping, there are four variables to take into consideration including: premiums (fees charged by insurance providers), deductible (how much you pay before the coverage starts), reimbursements (how much the insurer pays after you pay the deductible), and caps (predetermined annual and/or per-condition limits on reimbursement). No two insurance companies offer exactly the same insurance packages, but the following example will give you an idea of what services levels of coverage come with an additional price.
Cost -- Coverage -- Types of services typically covered
$ -- Accidents only -- Accidents = broken bones, burns, lacerations, cuts, foreign object ingestion, poison
$$ -- Accidents + illnesses -- Illnesses = ear and skin infections, cancer, diabetes
$$$ -- Accidents + illnesses + wellness -- Wellness or preventative services = routine care, annual exams, vaccines, flees heartworm
$$$$ -- Accidents + illnesses + wellness + dental -- Dental = dental cleaning
*Pet insurance plans typically range in cost from $10-$80/month
Pet insurance companies either pay a percentage of your veterinary bill or they pay a fixed amount based on a benefit schedule. The benefit schedule is uniform across the U.S. so it does not take into consideration the cost of living in different areas. A pet owner in California is probably going to be charged more than someone in Kansas for the same service.