Statistics show that ixty-three percent of U.S. households own a pet, spending an estimated $38.4 billion on them, according to the American Pet Product Manufacturers Association.

Out of that total, $9.4 billion was spent on veterinary care. Veterinary health insurance is gaining popularity with 3 percent of dog owners carrying insurance on their animals according to the APPMA. Only 1 percent of cat owners have pet insurance.

Pet insurance works like health insurance for people. You have to pay the vet bill first, and then you're reimbursed. And just like our health insurance, there is usually a deductible.

Monthly premiums will vary according to a pet's species, age and health condition. These premiums can run as high as $50 to $60 but are generally in the $20 to $30 range. These health pet health insurance policies cover preventive care, accidents and treatment of an illness, according to Packaged Facts.

Pet insurance typically reimburses from 80 percent to 100 percent of a covered expense. Typically there is maximum limits per health incident.