Is Pet Insurance the Same as Human Health Insurance?

Every other member of your family has health insurance, so it’s only natural to want to make sure your pet’s health is protected as well. But is pet health insurance or as it’s more commonly called, pet insurance, the same as health insurance for humans?

Pet insurance and human health insurance may certainly seem similar at first glance — both help cover medical expenses and are regulated industries — but they differ in key ways. While human health insurance is more heavily regulated and, for most people, at least partially covered by employers or government programs, insurance for dogs and cats works more like reimbursement-based coverage and does not cover all the same things as human health policies. Understanding these differences is essential for pet owners who want to protect their furry friends without additional unexpected costs. Let’s take a closer look at how pet insurance compares to human health insurance, how claims work, and what to consider before choosing a policy for your pet.

How pet insurance is similar to health insurance for humans

In order to fully understand the differences between human health insurance and insurance for pets, it’s first necessary to understand how they’re similar. To start, both types of insurance are designed to help manage the high costs of medical care by covering a portion of the associated expenses.

Policyholders for both types of coverage also typically pay monthly premiums to maintain them. They may also face deductibles, and are subject to coverage limits and exclusions. And, just like human health insurance, pet insurance often requires claims to be submitted for reimbursement and may offer different levels of coverage depending on the plan. All of these shared features can help pet owners budget for veterinary care with greater understanding and peace of mind.

6 differences between pet insurance and human health insurance

Perhaps the most important thing separating pet medical insurance from health insurance for humans is how pets are viewed legally. As pet parents, we view our dogs and cats as members of the family and as our beloved companions. But, like it or not, pets are viewed as property in the eyes of the law. Because of this, their health insurance functions more like auto or home insurance than it does like human health insurance. While the goal of offsetting medical care costs is still there with pet insurance, the specific rules and coverage work a bit differently.

1. Pet insurance works differently from human insurance

With pet insurance, you typically pay your veterinarian directly at the time of service, then file a claim with your insurer to be reimbursed. In contrast, human health insurance usually allows medical providers to bill the insurer directly, with patients paying only a copay or coinsurance upfront.

The exception to the standard reimbursement model is pet insurance that can pay veterinarians directly. Trupanion, for example, can pay veterinary hospitals at time of checkout from your pet’s appointment, saving you the hassle of having to file for reimbursement and wait for payment.

Learn more about how pet insurance works.

2. Pet insurance isn’t limited to a provider network

Worried about being limited to which veterinarian you can go to with your pet insurance coverage? Don’t be. Pet insurance generally doesn’t require you to stay within a provider network — you can visit any licensed vet. Human health insurance plans, on the other hand, often limit coverage to a specific network of doctors and hospitals, with higher costs for out-of-network care.

With Trupanion, you can visit any licensed veterinarian, emergency animal hospital, or veterinary specialist in the United States or Canada.

3. Pet insurance can exclude pre-existing conditions

The vast majority of pet insurance plans exclude coverage for pre-existing conditions. This means your policy will not cover anything your pet was diagnosed with or showed symptoms of before their coverage started. Human health insurance, however, cannot deny coverage or charge more based on pre-existing conditions under current U.S. law. In Canada, pre-existing conditions may or may not be covered, depending on the personal plan (though treatment can be covered with public health insurance).

4. They’re regulated differently

To state the obvious, there are separate laws governing pet insurance and human health insurance. But there are far more around human insurance and healthcare in general. Pet insurance is less regulated than health insurance for humans, meaning there is greater variation between what’s covered and how (so, always compare your pet insurance options before picking one!).

5. There are different types of pet insurance

Sure, there are some different types of human health insurance as well, but the differences among them are overall more subtle. There are meanwhile several very different types of pet insurance. There’s full, robust coverage that handles both accidents and illnesses, and there are sparser plans that only cover accidents. There is also pet wellness coverage, which isn’t actually considered pet insurance but is nevertheless often lumped in with it.

6. Pet insurance doesn’t have copays

Pet insurance generally doesn’t use copays in the same way human health insurance does. Remember how we said pet insurance typically operates on a reimbursement model? After your pet receives care, you submit a claim to your insurance provider, and they reimburse you based on your plan’s terms — usually after a deductible is met. Most plans offer a reimbursement rate between 70% and 90%, meaning you’ll still be responsible for a portion of the bill even after coverage kicks in.

While human health insurance often includes fixed copays for doctor visits or prescriptions, pet insurance rarely uses this structure. Instead, the cost-sharing is handled through deductibles and reimbursement percentages. Although some newer or more customized pet insurance plans may reference copay-like features, traditional copays are not a standard component of most pet insurance policies.

Do you need to get pet insurance?

In case you’re wondering, no, pet insurance isn’t legally required in order to have a pet. However, there’s no telling when your dog or cat will get into an accident or come down with a serious illness. The associated veterinary expenses can be prohibitively costly, so pet insurance is vital for many pet owners in these situations. Human health insurance is already considered a necessity for a healthy life, and an increasing amount of dog and cat owners are turning to pet insurance to prioritize their pet’s health as well.

Learn more about the benefits of pet insurance and how it may fit into your life with your pet.