Is the Nibbles Card worth it? I ask our insurance experts.

A recent veterinary exam for my 10-year-old cat and three-year-old miniature dachshund cost me about $870. Maybe I’m a sucker for throwing in extra laboratory tests and vaccinations, but I care about the health of my pets and want to make sure I do everything in my power to stay ahead of any health issues they could experience. Not only for their sake, but for the sake of my peace of mind, too.

The week after I paid for that visit, the Nibbles Pet Rewards Credit Card landed in front of me. This card not only offers pet purchases as a rewards category, but it also features pet insurance coverage. It was the first I ever heard of the card. I’ve been considering pet insurance for a few years now, but just haven’t committed to any of the current providers. So I took a sharp interest in the Nibbles Card and wanted to figure out whether it was worth the hype.

Nibbles recently updated this card to get rid of its $249 annual fee; the card now has no annual fee. This has all but secured my motive to apply, but it’s still a credit card with a complex blend of benefits, so I don’t want to go in unprepared. I reached out to the experts on Bankrate’s insurance team to see how the coverage Nibbles offers compares to traditional pet insurance.

Like it or not, pet insurance is important

Experian found that 92 percent of pet owners who have pet insurance claim the coverage is worth it. I’m not normally skeptical of surveys like this, but 92 percent seems like an overwhelming percentage of people. I’m inclined to wonder if they have really done the math to realize that it is truly worth it, or if they’re saying it’s worth it simply because they are already paying for it.

But I also know it’s not that simple. From a purely financial perspective, insurance is probably not worth it for the majority of people who purchase it. However, insurance thrives on the unknown as a business model.

Insurance is important to have because you never know when an emergency might happen, and it can help you avoid the uncomfortable question that inevitably arises: Do I save my emergency fund, or do I save my pet?

I would choose my pet every time. But from there, new financial problems will surface.

Crunching the numbers

For instance, I’m concerned about intervertebral disk disease (IVDD) in my miniature dachshund because of how prone the breed is to suffering from this disease compared to other dogs. I want to avoid this as best I can, so I take preventive measures like providing him with a little ramp to access areas (like the couch) without having to jump on and off of it. However, this isn’t a foolproof safety net. We can’t prevent everything, but we can prepare for it. That’s where insurance comes in.

According to PetMD, IVDD treatment costs anywhere between $2,000 and $5,000 (not including any added costs based on location, lab tests and other exams). That’s a large chunk of change for an unexpected expense.

To determine if pet insurance is worth it for you, consider what you worry most about when it comes to your pet and familiarize yourself with the potential costs of treating it.

Why I’m considering the Nibbles Card

The Nibbles insurance coverage would cover IVDD treatment for my dog assuming the condition was diagnosed outside the Nibbles waiting period and it’s not a pre-existing condition. Using a projected $5,000 cost for IVDD treatment, I’d pay the first $500 (my deductible) and then I’d owe 20 percent of the remaining $4,500 balance since Nibbles pays 80 percent as my coinsurance. I’ll owe a total of $1,400 ($900 plus my deductible) instead of $5,000. That’s a savings of $3,600, and the potential savings are even higher for more costly procedures. Nibbles will also automatically file claims for me without requiring me to scan receipts, which is a very appealing service for a card like this.

To get more expert advice on how this card compares to standard pet insurance, I spoke with Natasha Cornelius, CLU. She’s an editor on Bankrate’s insurance team and has written a lot about pet insurance.

Here’s her expert take.

How the Nibbles Card pet insurance compares

According to Cornelius, when comparing pet insurance policies, which can vary a lot, you should look for features such as:

• Coverage options
• Reimbursement and copay variations
• Pet age limits
• How to process claims

“A good pet insurance policy provides the coverage you’re looking for with a price that fits your budget,” she says.

Cornelius believes that even though the Nibbles credit card base insurance policy does not include vet exam fees or medication (a benefit other insurers do provide), it might still be worth a look, especially since Nibbles has the option to customize your pet insurance policy for additional fees. She notes, “For an accident and illness policy, the cost of pet insurance averages $56 per month for a dog and $32 for a cat, so the included policy for Nibbles cardholders may definitely be something to consider.”

Cornelius compared Nibbles with popular pet insurance policies. Here’s the rundown:

Also, unlike traditional pet insurance policies, Cornelius notes that the insurance offered by the Nibbles Card is contingent upon maintaining an active cardholder status in good standing. She warns, “So, if you decide this card is no longer right for you or you forget to make a payment, your pet’s coverage may be canceled. You would be free to find pet insurance coverage elsewhere, but any pre-existing conditions will likely not be covered.”

Is the Nibbles Card a good credit card?

It has a relatively high ongoing APR, no intro APR offers, a modest boosted rewards rate in a niche category and a thinner perks portfolio than many no-annual-fee cards. It may not be the best rewards credit card, but I wouldn’t consider using it the way I use my other credit cards because it’s entirely unique.

This credit card offers some pet insurance for no annual fee and increased coverage for additional fees, which I don’t think is a bad thing at all. In fact, I hope that someone who can’t afford insurance from providers like Lemonade or Nationwide finds this card if it means they’ll get a big enough break with their veterinary bill that they can afford the care their animal companion needs.

Alternative rewards cards

If you want a top credit card for earning points from purchases you make for your pets, the Prime Visa and Blue Cash Preferred® Card from American Express are some alternatives worth considering. While these cards won’t be the most valuable for vet visits, they could earn a favorable chunk of rewards or cash back for pet food, toys and supplies.

Bottom line

Don’t expect to earn a hearty sum of cash back or rewards with this card; it isn’t the best option for that. Many of our best rewards cards can help you earn more cash back or rewards. If you’re considering the Nibbles Card like I am, it’s only worth it for its insurance benefit. However, you need to make sure to keep your account in good standing and if you ever close your card account, make sure you have another insurance plan in mind.

Natasha Cornelius, Bankrate insurance editor, contributed to this article.