Dental Savings Plans vs. Insurance: Which Saves You More?

When shopping for ways to reduce dental costs, you will come across two main options: dental insurance and dental savings plans (also called dental discount plans). They sound similar, but they work in completely different ways. Understanding the differences can help you choose the option that actually saves you the most money based on your specific dental needs.

This guide walks you through how each option works, what they cost, how the savings compare for common procedures, and which type of plan makes more sense for different situations. We will also cover red flags to watch for and what the Federal Trade Commission says consumers should know.

How Dental Savings Plans Work

A dental savings plan is a membership program. You pay an annual fee, typically $80 to $200 for an individual, and in return you get access to a network of dentists who agree to charge reduced rates for their services. The discounts usually range from 15% to 60% depending on the procedure.

When you visit a participating dentist, you pay the discounted fee directly. There are no claims to file, no deductibles to meet, no annual maximums, and no coinsurance. The plan does not pay anything on your behalf. It simply gives you access to lower prices.

Savings plans also have no waiting periods. You can use the plan as soon as you enroll, which makes them appealing if you have an immediate dental need. There are no age restrictions, no health screenings, and no exclusions for pre-existing conditions.

How Dental Insurance Works

Dental insurance is a contract with an insurance company. You pay a monthly premium, typically $20 to $60, and the insurer covers a percentage of your dental costs based on the type of service. Most plans use the 100/80/50 coverage model: 100% coverage for preventive care, 80% for basic services, and 50% for major services.

Insurance plans typically have annual deductibles of $50 to $150, which you must pay before the plan starts covering basic and major services. Preventive care is usually exempt from the deductible. Plans also have annual maximums, usually $1,000 to $2,000, which cap how much the insurer will pay per year. Once you hit that limit, you pay 100% of remaining costs.

Many insurance plans also have waiting periods. Preventive care is usually covered immediately, but basic services may require a 3 to 6 month wait, and major services often require a 6 to 12 month wait before coverage kicks in.

Cost Comparison: Savings Plans vs. Insurance

To understand which option saves more, it helps to look at the total annual cost, including what you pay for the plan itself plus what you pay out of pocket for dental services. Here are three scenarios.

Scenario 1: Preventive Care Only

If you only need two cleanings and exams per year, dental insurance at $30 per month costs $360 annually. Insurance covers preventive care at 100%, so your dental costs beyond the premium are zero. Total annual cost: $360.

A savings plan at $100 per year gives you a 15% to 25% discount on cleanings. Two cleanings at $150 each would be $300 without any plan. With a 20% discount, you pay $240 plus the $100 membership fee for a total of $340. Without any plan, you pay $300. In this scenario, the savings plan saves you about $20 compared to insurance, and even paying out of pocket without any plan is cheaper than insurance.

Scenario 2: Moderate Dental Needs

Suppose you need two cleanings ($300), one filling ($250), and a set of X-rays ($100). Total without any plan: $650. With dental insurance at $30 per month ($360/year), preventive care is covered at 100%, and the filling is covered at 80% after a $50 deductible. Your insurance pays $160 of the filling cost, and you pay $90 plus the deductible. Total cost: $360 premium plus $140 out of pocket equals $500.

With a savings plan at $100 per year and an average discount of 25% on all services, your dental costs drop to about $488. Add the $100 fee, and total cost is $588. In this scenario, insurance saves you about $88 more than the savings plan.

Scenario 3: Major Dental Work

Now suppose you need two cleanings ($300), a crown ($1,200), and a root canal ($1,000). Total without any plan: $2,500. With insurance at $30 per month and a $1,500 annual maximum, the plan covers preventive care at 100%, the crown at 50% after deductible, and the root canal at 50% after deductible. The insurance pays up to its $1,500 maximum. Your total: $360 premium plus about $1,050 out of pocket equals $1,410.

With a savings plan at $100 per year and a 40% discount on major procedures, your costs would be roughly $300 for cleanings at a 20% discount ($240), the crown at $720 (40% off), and the root canal at $600 (40% off). Total: $1,560 plus $100 fee equals $1,660. In this scenario, insurance saves about $250 more than the savings plan, assuming the major services are past the waiting period.

Pros and Cons of Dental Savings Plans

Dental savings plans have several clear advantages. The annual fee is low compared to insurance premiums. There are no waiting periods, so you can use the plan immediately. There is no annual maximum, which means you can use the plan for unlimited dental work throughout the year. The process is simple with no claims to file. And there are no exclusions for pre-existing dental conditions.

On the downside, savings plans do not pay anything toward your dental care. You pay the full discounted fee out of pocket at the time of service. The discounts vary by provider and procedure, and they may not be as large as advertised. You must use participating dentists, and the network may be smaller than insurance networks. If you do not use the plan enough, the annual fee is wasted.

Pros and Cons of Dental Insurance

Dental insurance provides more structured financial protection. It pays a percentage of your dental costs, which can add up to significant savings on expensive procedures. Preventive care is covered at 100% in most plans, encouraging regular checkups. Insurance plans also tend to have larger provider networks than discount plans.

The downsides include higher monthly costs, waiting periods that delay coverage for basic and major services, annual maximums that cap your benefits, and deductibles that you must pay before coverage begins. If you have minimal dental needs, you may end up paying more in premiums than you receive in benefits.

When a Savings Plan Wins

A dental savings plan is likely the better choice in several situations. If you need dental care right away and cannot wait through a 6 to 12 month waiting period, a savings plan lets you start saving immediately. If you only need preventive care and occasional minor work, the lower annual fee of a savings plan saves you money compared to insurance premiums.

Savings plans also make sense if you have already hit your insurance annual maximum and still need more dental work. In that case, a savings plan can give you discounts on the additional procedures that your insurance no longer covers. And if you have been turned down for insurance due to pre-existing dental conditions, savings plans accept everyone.

When Insurance Wins

Dental insurance tends to save more money when you have moderate to significant dental needs and can wait through the waiting periods. If you need a crown, root canal, dentures, or other major work, the 50% coverage from insurance can save you hundreds of dollars even after accounting for premiums and deductibles. Insurance is also better for people who want the peace of mind of knowing their preventive care is fully covered with no out-of-pocket cost.

Employer-sponsored dental insurance is almost always worth it because the employer typically pays a portion of the premium, making it significantly cheaper than individual plans. If you have access to group dental insurance through a former employer, union, or professional association, that is usually the most cost-effective option.

Red Flags and Consumer Protections

The Federal Trade Commission has cautioned consumers about dental discount plans that use misleading marketing. In December 2024, the FTC sent warning letters to 21 companies for marketing dental and health discount plans in ways the agency considered deceptive. Some companies were describing discount plans as though they were insurance, and others were exaggerating the level of savings.

Before signing up for any dental savings plan, the FTC recommends that you verify the plan has participating dentists in your area, confirm the specific discounts available for the services you need, read the terms carefully for cancellation policies and refund guarantees, and check whether the company is licensed in your state. Many states regulate dental discount plans and require them to be licensed.

Be wary of plans that charge high enrollment fees, require long-term contracts, claim savings of 80% or more, or have very few providers in your area. A legitimate plan should have a straightforward fee structure, a verifiable provider network, and clear information about the discounts you will receive.

For dental insurance, look out for plans with very low annual maximums, long waiting periods, or limited networks. Compare the total annual cost of premiums plus expected out-of-pocket expenses to make sure the plan provides real value based on your anticipated dental needs.

Neither dental savings plans nor dental insurance is inherently better. The right choice depends on your dental health, your budget, and how soon you need care. By understanding how each option works and running the numbers based on your expected dental needs, you can make an informed decision that saves you the most money.