The Best Holiday Gift for Your Pet: An Emergency Fund
The Best Holiday Gift for Your Pet: An Emergency Fund
We’ve all been there. Your pup or cat faces a sudden illness or accident, and you need to make an unexpected vet visit. Of course, you go because you’d never wait to get right care your pet needs, but an unexpected veterinary bill throws off your budget for the month. Every day, pet parents face all sorts of issues with their pets—whether their dog gets into a fight at the dog park, their cat swallows some hair ties, or their pet faces sudden onset lameness. Without a financial cushion, pet owners may be forced to delay treatment or settle for less comprehensive care.
In September, we wrote about the role of insurance in your pet’s healthcare. Ahead of the holidays, we’re providing additional thoughts on why you should establish an emergency fund for your pet. This post will run through why an emergency fund is important, how it complements pet insurance, and how to maintain and use this fund. We believe that all pets would benefit from a well-funded emergency fund, and pet parents gain peace of mind that they can tackle anything life throws at their pets.
Understanding Unexpected Veterinary Expenses and Emergencies
Veterinary expenses can arise without warning—surgeries, urgent and emergency visits, and specialist consultations. Furthermore, as veterinary medicine continues to close the gap with human medicine, these advancements have led to generally higher prices. And as pets age, pet owners need to plan for procedures like dental cleanings, which can be more expensive than typical preventative visits. For example, depending on how severe your pet’s case is or where you’re located, a foreign body ingestion can cost $6,000, a leg fracture can cost $5,000, and a vomiting/diarrhea case can cost $1,500. Pet parents have a lot to think about!
As both veterinarians and pet parents ourselves, we have a singular goal—to maximize the quality of life and the time we have with our pets. An emergency fund is a key tool that can be used to achieve peace of mind. Owners can ensure rapid decision-making for urgent treatment, and they can focus on their pet’s health rather than worrying about finances.
The Basics of an Emergency Fund
An emergency pet fund is a financial buffer specifically earmarked to handle unforeseen veterinary bills from urgent and emergency visits, after-hours visits, specialists, or life-saving treatments.
It should be separate from regular budgeting, which handles routine expenses like annual exams and food, and from pet insurance, which typically covers preventative or ongoing medical conditions. In some cases, pet insurance might include accident or catastrophe coverage for life-threatening events, e.g. for emergency surgeries from a hit-by-car or GDV (gastric dilatation-volvulus or twisting of the stomach). Even in these cases, it’s best to have a separate emergency fund if total veterinary costs exceed your coverage amount or some items are not covered.
You should set up your emergency fund in a checking or savings account with your bank. While you could allocate a fund within your own checking or savings account, it may be easier to open an entirely new checking account dedicated to your pets. This makes it easier from budgeting perspective and helps avoid accidently tapping into the funds. It also makes it easier to set up recurring transfers into the account, whether they be weekly or monthly. You should consider saving $50 or $100/mo into this pet savings account, which results in $600-1200 annually, and can benefit from 3-4% interest on balances, which many banks offer now. You can start with as little as $10/mo–any little bit matters! Additionally, you can supplement the fund by adding larger one-time contributions from annual bonuses, dividends, or annuities. Above all, the key is consistency and accountability—make sure to stick to your plan and use the fund for expenses that really matter.
Benefits of Having an Emergency Fund
There are many benefits from having a well-funded emergency fund:
You have immediate access to necessary funds in urgent situations. No waiting for loan or payment plan approvals when minutes matter.
It reduces stress during critical situations, allowing owners to make decisions based solely on medical advice and not financial limitation.
You can avoid debt or high-interest financing options, that may lead to long-term debt.
You can ensure that your pet receives prompt, high-quality treatment that maximizes their outcome and recovery chances.
How an Emergency Fund Complements Pet Insurance
Insurance is complicated, whether it’s for yourself, your family, or your pet. While it can offset ongoing or major medical expenses, it may not pay for anything. An emergency fund can fill coverage gaps not included in standard policies or address specific carve-outs.
For example, many policies exclude pre-existing conditions and exam fees, leaving gaps that an emergency fund can fill. If your insurance company decides an emergency is associated with a pre-existing condition, it may not cover it, exposing you to thousands of dollars of unexpected expenses. You can avoid this risk by setting up an emergency fund rather than relying on an insurance policy blindly.
Additionally, an emergency fund can handle policy deductibles and copays, while bridging you during claim waiting periods. You may have to wait days or weeks for your insurance company to evaluate your claims.
Pairing an emergency fund with an insurance plan can provide a well-rounded safety net for both the owner and your pets.
The Mechanics of Establishing Your Pet’s Emergency Fund
1. Understand Typical Emergency Costs
Minor Emergencies: $500–$1,000 (e.g., wound care, minor infections).
Major Emergencies: $2,000–$5,000 (e.g., surgery for foreign object removal or fractures).
Critical/Life Threatening Emergencies: $5,000–$10,000+ (e.g., GDV surgery or trauma repair).
2. Consider Your Pet's Risk Profile
Breed: Some breeds are more prone to specific health issues. For example:
Large dog breeds (e.g., Great Danes) may be at higher risk for GDV.
Cats are prone to urinary blockages.
Age:
Puppies and kittens may require funds for accidental injuries or ingestions.
Senior pets are more likely to face chronic or sudden illnesses.
Activity Level:
Pets with high activity (e.g., working or athletic dogs) are more likely to sustain injuries.
3. Establish a Baseline
A good starting point for an emergency fund is $1,000 to $2,000 per pet. If you can’t start with this on day one, aim to hit this target within 6-12 months of establishing the fund.
Adjust based on the pet's risk factors and veterinary costs in your area (urban areas tend to be more expensive).
4. Plan for Multi-Pet Households
If you have multiple pets, you consider pooling their funds but increase the total.
For example, two pets might require $2,000–$4,000 instead of $1,000–$2,000.
5. Maintain and Adjust Over Time
Reassess the fund annually to account for changes in your pet's health (e.g. your pet develops a chronic condition), your area’s veterinary costs, or the addition of new pets.
If you use part of the fund, replenish it promptly to ensure you're prepared for future emergencies. You can do this by increasing your recurring deposits until you hit your target amount or making a one-time contribution
Here’s an illustrative example for a 6-year-old German Shepherd in an urban area:
Typical emergency costs: $3,000 (German Shepherds have elevated GDV risk)
Baseline fund: $2,500-$3,500.
Insurance with a $500 deductible and 20% copay: Ensure you have at least $1,000 for out-of-pocket expenses, and size the fund higher for uninsured scenarios.
The Best Gift You Can Give Your Pets this Holiday Season Is an Emergency Fund
A well-prepared pet parent can handle emergency calmy and effectively with a well-designed emergency fund. These funds are easy to set up, can save your pet’s life, and save owners from stress. Ideally, you can pair your emergency fund with insurance to provide comprehensive coverage for all types of expenses and address any coverage gaps.
By having a robust safety net for those unexpected injuries and illnesses, you can focus on what matters—making incredible memories with your pets. As we head into the holidays and enter 2025, consider setting up an emergency fund as a foundation of your pet’s healthcare plan.
Contact
hello@rubyvet.com
