Pet Insurance vs. Pet Loans: Which Makes More Sense?

With pet ownership comes spending money on your pet’s needs, one of the most important being veterinary care. Vet bills can add up, and there are different ways you can pay for them, including with pet insurance and pet loans. Let’s compare the two methods so you can make the right decision for you and your pet. 

How Pet Insurance Works

Pet insurance helps offset the cost of veterinary care by reimbursing you for covered treatments and services.¹ Covered costs may include eligible medications, specialist care, diagnostic tests, and even boarding for your pet if you’re hospitalized.

Coverage can vary by provider, but the way pet insurance works is pretty consistent:

1. Select a policy that aligns with your pet’s needs and your budget, then pay your premium on time to keep the plan active.
2. Take your pet to the vet whenever they need medical attention.
3. Pay the vet bill at the time of the visit.
4. Submit a claim to your insurance provider to receive reimbursement for any expenses your policy covers.¹

Most pet insurance plans include a deductible that you must meet before reimbursements begin, and many have exclusions or limits, such as restrictions on pre-existing conditions.^1,2 Also, while routine vet care typically isn’t covered in standard plans, many pet insurance companies like MetLife Pet offer an optional add-on that covers routine care expenses. Reviewing your policy details can help you understand what to expect before your pet needs care.

How Pet Loans Work

Pet loans are basically personal loans a pet parent can use to finance pet-related expenses. Some banks or financial institutions may market loans as pet loans, but they function similarly to personal loans.³

Before you can obtain a pet loan, you need to qualify for one. The bank will look at your credit score, income, and other debts to determine if you’re eligible for a loan, and if you are, what the terms will be. The terms include your interest rate, monthly payment, and repayment period.⁴

If the loan is approved, the bank or other lending institution will deposit the funds into your bank account, and you can use that money to pay your vet bills for your pet. Repayment typically begins within 30 days of when you’re approved.⁴

Pet Insurance vs. Pet Loans: Main Differences

Both pet insurance policies and pet loans are ways you can pay for your pet’s vet expenses. Let’s explore the main differences between pet insurance and pet loans.^1,2,4

While pet loans offer quick access to funds with fewer potential restrictions, they don’t reduce the overall cost of care and may lead to higher expenses over time. Pet insurance, on the other hand, is designed to help lower your long-term financial burden by reimbursing you for covered treatments.

Benefits of Choosing MetLife Pet Insurance

There are several reasons why you might choose MetLife Pet Insurance instead of a pet loan:

• Reimbursement for vet bills: With MetLife Pet, you could be reimbursed for up to 90% of covered vet costs.¹ A pet loan can provide money up front, but you have to repay those funds in full — plus any interest on the loan.
• No barriers to enrollment: MetLife Pet won’t deny enrollment of your pet for any reason. You could be denied a pet loan if you don’t meet a particular lender’s financial requirements related to credit score, the amount of debt you have, and other factors.
• No interest accrued: Pet insurance isn’t a loan, so you won’t be charged interest on your expenses. With a pet loan, you’ll likely owe interest, meaning you could end up paying back significantly more than the amount you originally borrowed.
• No changes to your credit: A pet insurance policy doesn’t impact your credit. By contrast, applying for — and repaying — a pet loan can impact your credit score.
• Long-term planning: A MetLife Pet Insurance policy is proactive and can help you cover the costs of future vet bills. Pet loans are a more reactive way to finance pet-related expenses.

Although pet loans don’t have waiting periods, it can take a few days for the funds to hit your account. MetLife Pet is unique among many pet insurance providers for offering 0-day waiting periods on accidents and Preventive Care.⁵ MetLife Pet also provides a Family Plan, allowing you to insure up to three pets under a single policy with one shared deductible.⁶

Real-life savings with pet insurance

To get a better idea of how much you could save with a MetLife Pet Insurance policy, check out these real-life customer stories.

Tony, an English Bulldog puppy, was coughing and acting lethargic, so his dog parents took him to the vet, where he was diagnosed and treated for pneumonia. The total vet bill was around $3,750, and MetLife Pet covered almost $2,800 of the bill.⁷

Whiskers, a domestic short-haired cat, swallowed a small toy part. His parents took him to the vet for surgery to remove the object. The bill was over $3,200 for the initial exam and the surgery, and MetLife Pet reimbursed them over $2,350l.⁷

Lucy, an Italian Greyhound, stopped eating and had foul-smelling breath. At the vet, Lucy was diagnosed with periodontal disease and had a tooth extracted. The vet billed Lucy’s dog parents about $6,100, and MetLife Pet covered over $5,300 of the bill.⁷

Pet Insurance Could Help You Save More than Pet Loans

While pet loans can offer quick access to funds, they often come with interest, strict repayment schedules, and long-term financial commitment. When emergencies happen, the last thing you need is to take on debt.

MetLife Pet Insurance, an award-winning⁸ provider, offers a more reliable and cost-effective alternative by helping reimburse eligible vet expenses without the burden of monthly loan payments. Choosing the right insurance plan can help you avoid unnecessary debt and ensure your pet can receive the care they need. Get a free quote today to get started.