Pet Insurance 101: Is Pet Insurance Worth It For You?
Updated October 25, 2024 at 3:05 pm
Pets can be a wonderful addition to any family, but just like humans, pets can get sick or hurt, requiring a vet or emergency clinic visit. If your dog accidentally ingests something like grapes, you could receive a vet bill of hundreds or thousands of dollars for treatment.
Could you pay the bill? If not, pet insurance might be worth the cost. Pet insurance can help cover veterinary expenses like emergency surgery, prescription medications, hospital stays and diagnostic testing.
We detail the cost of pet insurance and how it works. Then, decide if it’s worth it.
Key Takeaways -
- Pet insurance is worth considering for your pet, especially if covering emergency costs would strain your finances. While it may not be necessary if you have enough money saved, pet insurance can allow you to make decisions for your pet’s health without worrying about how much it may cost you.
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- The average monthly cost of accident and illness pet insurance is $56 for dogs and $32 for cats.
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- Emergency veterinary treatments can range widely in cost, with basic services like ER exams costing $100-$200 and more intensive procedures like surgery or hospitalization reaching up to $8,000. Common issues such as intestinal obstruction, toxin ingestion, and heat stroke may cost anywhere from $250 to over $6,000, depending on severity and required treatment.
Pet Insurance Companies
Is Pet Insurance Worth It?
Only you can determine if pet insurance is worth it. It might not be worth it if you can afford to cover an emergency. For example, you may have a dedicated pet care emergency fund or another option to pay for their care.
But if you must choose between depleting your bank account or taking out an expensive loan and your pet’s life, a pet insurance policy can be a financial lifeline. You can make the best decision about your pet’s health without worrying about costs.
A recent Canine Journal study of 1,000 pet owners revealed that 48% would consider euthanizing a pet if they couldn’t afford treatment. While 17% said they wouldn’t limit spending to save their pet’s life, 36% would only be willing to spend up to $1,000 to avoid euthanasia.
Only 37% of respondents had pet insurance. Another 55% wished they’d previously had insurance to help address expenses.
Many pet insurance claims are for emergencies, including GI illnesses such as vomiting and diarrhea, and urinary tract infections and other issues for cats and dogs. Veterinary care is more expensive if your pet is treated in an emergency hospital rather than at your local veterinarian’s office.
Though veterinary costs vary by location, diagnosis and treatment plan, here’s an idea of what it might cost for your pet to receive emergency vet treatment.
| Treatment | Average cost |
| ER exam | $100-$200 |
| Basic blood tests | $80-$200 |
| X-ray | $150-$250 |
| Ultrasound | $300-$600 |
| Emergency surgery | $1,500-$5,000 |
| Hospitalization and monitoring | $600-$3,500 |
| Gastroenteritis | $750-$3,000 |
| Intestinal obstruction with surgery | $3,000-$4,000+ |
| Toxin ingestion | $250-$6,000 |
| Heat stroke | $1,500-$6,000+ |
| Hit by a car | $250-$8,000 |
| Urinary tract obstruction | $1,500-$3,000+ |
Pros and Cons of Pet Insurance
Pros
- Pet insurance helps offset the cost of unexpected veterinary bills, potentially saving you hundreds or thousands of dollars over your pet’s lifetime.
- Many pet insurance companies cover treating a variety of illnesses and injuries
- A pet insurance policy enables you to explore various treatment options, not just the least expensive.
- You can see any licensed veterinarian in the country and get eligible veterinary expenses reimbursed.
Cons
- Pet insurance plans often come with deductibles, coinsurance, or co-pays you must pay out of pocket.
- Most pet insurance companies require you to submit a claim for reimbursement after you’ve paid the bill upfront and in full.
- Pet insurance premiums can increase as your pet ages and veterinary costs increase.
- A standard pet insurance policy can involve many exclusions, limitations and requirements that require close reading of the contract.
How Much Does Pet Insurance Cost on Average?
The least expensive pet insurance is accident-only, which helps pay if your pet breaks a bone or swallows a foreign object but won’t cover vet expenses if it gets sick. Accident and illness insurance cost more but covers more, too. The most expensive pet insurance type, comprehensive insurance, includes wellness visits such as preventive vaccinations and care.
According to the North American Pet Health Insurance Association (NAPHIA) 2024 State of the Industry Report, here are how costs break down:
| Insurance Type | Dog | Cats |
| Accident-only / Monthly | $17 | $10 |
| Accident-only / Annual | $204 | $116 |
| Accident and IllnessMonth | $56 | $32 |
| Accident and IllnessYear | $676 | $383 |
| Comprehensive Month | $105 | $52 |
| ComprehensiveYear | $1,263 | $626 |
Pet insurance rates vary by insurance company, so it’s worth comparing quotes and coverage benefits to find the right fit for your budget and your pet’s healthcare needs. For example, an accident and illness plan varies in the following way per month:
- Pets Best: Average rates between $36 and $58 per month for dogs and $22 and $34 for cats
- Embrace: Average rates are between $18 and $72 for dogs and $8 and $38 for cats
- Lemonade: An average of $47 per month for dogs and $28 for cats
Average Pet Insurance Cost for Dogs by Age
Generally, the older a pet gets, the more expensive pet insurance policies become. Since older pets are more susceptible to disease and illness, insurance companies may charge more to compensate. To offer an example of the following average costs, we calculated a total average based on costs in all 50 states using data collected from PawlicyAdvisor.
| Age | Average cost (monthly) |
| 6 months | $39.39 |
| 18 months | $39.34 |
| 5.5 years | $48.89 |
Average Pet Insurance Cost for Cats by Age
| Age | Average cost (monthly) |
| 6 months | $23.69 |
| 18 months | $23.68 |
| 5.5 years | $27.98 |
Average Cost of Veterinarian Treatments
| Condition | Average cost of treatment for dogs | Average cost of treatment for cats |
| Spay/Neuter | $300 | $150 |
| Dental | $500 | $300 |
| Routine medical costs (vaccines, wellness visits, etc.) | $225 | $160 |
| Preventative Medication (heartworm, flea/tick) | $185 | $140 |
How Much Pet Insurance Premiums and Prices Can Change Over Time
Inflation caused the cost of supplies, treatments and medications to rise, increasing the cost of veterinary care. According to the Bureau of Labor Statistics (BLS) Consumer Price Index, veterinarian services have increased by 5.1% between June 2023 and June 2024.
Some pet insurers commit to not raising your premiums based on your personal filed claims. Other insurers may downgrade your coverage, limit claims for the same issue and increase your premiums. An aging pet’s chances of illness and accidents increase, so pet insurers may pass on the higher-cost risks to the policyholder.
We gathered sample pet insurance quotes from four well-known pet insurance companies to demonstrate how your pet’s age affects pricing when signing up for a pet policy. These monthly rates are based on a medium-sized mixed-breed male dog in Tucson, Arizona, with an unlimited annual coverage plan, a $250 deductible and an 80% reimbursement level.
| Dog’s age | Embrace | Pets Best | Spot | Healthy Paws |
| 2 years | $53 | $57 | $102 | $60 |
| 5 years | $67 | $73 | $134 | $58 |
| 7 years | $87 | $107 | $189 | $82 |
| 10 years | $128 | $204 | $333 | $154 |
| 12 years | $158 | $281 | $451 | $319 |
As you can see, your dog’s premium could be three to four times higher by the time he is 12 years old. It’s crucial to shop around for coverage and compare insurers or prepare to shift your deductible, reimbursement and coverage amounts.
Factors That Affect How Much You Pay for Pet Insurance
Multiple factors determine how much you’ll pay for pet insurance. Each factor contributes to the insurance company’s risk of making expensive payouts while you have your policy. These factors include your:
- ZIP code: Veterinary costs vary by ZIP code, with urban areas being more expensive than rural areas. Suppose you live in a costly area like New York City. Your veterinary costs and pet insurance premiums will be higher than in rural Kentucky.
- Pet’s age: Puppies and kittens are typically the cheapest to insure, while older pets are usually the most expensive due to the increased risk of expensive care costs. Your pet’s age when you apply for pet insurance impacts your premium.
- Pet species: Medical costs for dogs are usually more expensive than for cats, which causes higher pet insurance costs for dogs than cats. Felines have a longer life expectancy than dogs and typically have fewer health problems. And if they stay indoors, they’re less likely to be exposed to illnesses or at risk of injury.
- Pet’s breed: Certain cat and dog breeds are more susceptible to hereditary or congenital health issues than others. Luckily, most pet insurers cover these types of medical conditions unless they’re pre-existing when you sign up for pet insurance (more on that later). Insurers take these breed-specific conditions into account when pricing pet insurance plans. Mixed-breed dogs are less likely to develop genetic disorders, so they can be cheaper to insure than purebred dogs.
- Pet’s size and gender: Size is already factored into the cost when insuring a purebred pet. For a mixed-breed cat or dog, you’ll pick a size range based on their weight. The larger your pet, the more pet insurance will cost. Male pets also typically cost more to insure than females, as their chances of costly accidents and health issues are higher.
- Pet insurance company: Though pet insurance coverages are similar among providers, rates vary due to differences in underwriting guidelines and how various factors weigh into your total pricing.
- Your customizations: You’ll spend less on coverage if you set lower limits on the insurer’s portion, lower reimbursement percentage levels, or choose a higher deductible for yourself.
What Pet Insurance Covers and Doesn’t Cover
Now you know what pet insurance might cost you, but what does it cover? Here’s a breakdown of what pet insurance covers and doesn’t cover, plus how your policy pays for covered veterinary bills.
What Pet Insurance Usually Covers
Although pet insurance policies vary, most plans cover the following vet expenses up to your plan limits after the initial waiting period:
- X-rays, MRIs and ultrasounds
- Emergency vet care
- Specialists
- Hospitalization
- Surgeries
- Prescription injections or medications
Most plans cover accidents, illnesses, and chronic health conditions that occur after the policy takes effect. Depending on the insurer and pet, some hereditary and congenital conditions may be considered “preexisting conditions” and excluded from coverage or may be covered.
Plans may also cover alternative therapies such as physical therapy, acupuncture, chiropractic care, and diagnosing and treating behavioral issues.
Remember that the plan will only cover up to the policy limits. If a hospitalization costs $6,000 and your coverage limit is $5,000, the plan won’t pay more for care. You will pay the difference out of pocket.
If you buy accident-only coverage, your pet insurance policy typically covers the same expenses but only for accidents. There is no sickness coverage when you buy accident-only pet insurance.
What Pet Insurance Doesn’t Cover
Pet insurance typically won’t cover:
- Preventive care (unless you buy an optional wellness plan)
- Pre-existing conditions
- Exam fees
- Pregnancy, whelping and breeding
- Elective procedures like tail docking, dew claw removal and ear cropping
- Grooming and boarding
- Neglect or intentional injuries or abuse
- Veterinary service fees (taxes, waste disposal, etc)
Review how the policy treats “curable” pre-existing conditions when comparing plans. Some pet insurers will cover curable pre-existing conditions, like vomiting, diarrhea or an ear infection if your pet has gone a specific length of time without a recurrence. Others won’t cover any condition your pet developed symptoms of before the policy’s effective date.
Some plans may also enforce a waiting period for a curable condition. A policy waiting period happens between the policy purchase and when the coverage takes effect. If your pet develops symptoms or is seen for a condition during the waiting period, the pet insurance company will consider it a pre-existing condition. Pet insurance waiting periods vary from one to 15 days for accidents, 14 to 30 days for illnesses and longer periods, such as six months to a year for curable conditions, if applicable.
However, some insurers will waive or shorten the waiting period if your pet gets an orthopedic exam with a clean bill of health when you buy the policy.
Premiums, Deductibles, Limits and Reimbursements
Here is how various cost components work. Pet insurance policies are customizable, allowing you to choose your deductible, coverage limits and reimbursement levels.
Premium
The premium is the amount you pay monthly or annually for the policy.
Policy Maximum
The policy maximum is the most the plan will pay for covered veterinarian care each year. If you choose a $5,000 annual maximum, the pet insurance provider will pay up to $5,000 of eligible veterinary expenses after you’ve met your deductible. The higher the policy maximum, the more you’ll pay for pet insurance.
Deductible
The deductible is the amount you pay towards covered veterinary bills before the insurer begins to pay its share. Most plans have an annual deductible, usually offered at set amounts between $0 and $1,000. Some plans have a per-condition deductible, which means you pay the deductible for each condition when your pet is seen for it.
Reimbursement Percentage
Once you meet your deductible, the pet insurer will cover eligible veterinary costs at your chosen reimbursement percentage. Reimbursement rates are commonly offered at 70%, 80% and 90%.
Remember, the more the insurance provider covers, the higher your premiums will be. You can offset higher premiums by lowering the reimbursement percentage.
What Veterinarians Say About the Value of Pet Insurance
Dr. Jamie Whittenburg, veterinarian at SeniorTailWaggers.com, relates the tale of a client whose small-breed dog needed a complex $6,000 orthopedic surgery on both hind legs.
“Fortunately, the dog was enrolled as a healthy puppy with a pet insurance plan. The insurance covered 80% of the surgery cost, making the procedure affordable and enabling the dog to recover and lead a much happier, pain-free life,” Whittenburg says.
Many clients are puzzled when Dr. Linda Simon discusses pet insurance for a new kitten or puppy. “However, when you’ve been a vet for 12 years, and you’ve seen first-hand just how essential a good policy is, and the heartbreak that can come from failing to insure a pet, this conversation makes a lot of sense,” says Simon, veterinarian at Cat-World.com.
“All too often, I encounter owners who spend lots of money on ‘designer’ puppies but don’t take out insurance because they tell me they can’t afford it,” Simon says. However, the alternatives are worse when an expensive bill arises that a pet parent can’t pay, including surrendering the dog to a clinic or putting the dog to sleep.
Recently, a young owner came in with her Chow Chow pup and accepted Simon’s offer of a well-known company’s free monthlong trial. Within two weeks, the owner was back at the clinic after her dog ate large amounts of raisins and developed acute kidney failure.
“After several days receiving life-saving care, the bill was standing at $2,200,” Simon says. “This woman was in tears at the relief she felt, knowing the insurer would cover almost the entire cost.”
Pet parents with insurance can make pet-focused decisions on care without worrying about cost, notes Dr. Katy Nelson, associate director of veterinary relations at Chewy. “In emergency situations or situations where advanced diagnostics or therapeutics are required, the ability to decide quickly and efficiently on a treatment path can actually be lifesaving.”
“Pet insurance helps provide peace of mind and financial stability as pet parents have the confidence that the coverage is there when they need it,” Nelson says. “I always advise my clients that using insurance and quality preventative care is much easier on you and your pet, plus it’s usually more cost-effective than paying a $5,000-$10,000 medical bill out-of-pocket.”
Ways To Save on Pet Insurance
Pet insurance can be expensive. Here are ways to save:
- Consider getting a cat. Cats are cheaper to insure and cost less to own, even though they typically live longer than dogs. Throughout a 15-year lifespan, a dog can cost as much as $55,130, while cats cost around $45,790, according to Synchrony’s Lifetime of Care Study.
- Get an accident-only plan. Accident-only pet insurance policies cost about one-third of an accident and illness plan.
- Buy pet insurance when they’re young and healthy. Pet insurance premiums are cheaper when you enroll a young, healthy pet without pre-existing conditions.
- Check for discounts. Discounts include multi-pet, active duty military and veterans, bundling multiple policies together, seniors or being part of special interest groups. You might also get a discounted rate if your employer offers pet insurance as part of your employee benefits package.
- Determine if a wellness plan is worth it. Traditional illness and injury plans don’t cover preventive care but typically offer optional, add-on wellness coverage. Add what you pay in wellness visits and compare it to wellness plan costs and coverage limits.
- Be proactive to keep your pet safe. Accidents happen, and we can’t have eyes on our pets 24/7. Smart home devices like a security camera, thermostat or plug can allow you to watch them while you’re gone, change the temperature to increase comfort or turn off something you forgot.
- Shop around. Compare pricing and what the policy covers and doesn’t cover to find the right policy for you and your pet’s health.
Common Alternatives to Pet Insurance
Pet insurance isn’t the only option to help pay for your pet’s veterinary care. Here are a few common alternatives to consider.
Out-of-Pocket
Just because you can afford pet insurance doesn’t mean you need to buy it. If you opt out of a pet insurance plan for your furry companion, self-funding a high-yield savings account might be the right solution.
As long as your pet stays healthy, you can bank reserves to earn a competitive interest rate and build an emergency fund faster. But if you’re just starting with saving for your pet’s future care and they suddenly break a leg jumping from the deck or get sick after playing with other dogs at the dog park, you might need another solution.
Pawp
Pawp is a mobile app providing unlimited 24/7 access to licensed veterinary professionals. It can help you avoid an unnecessary and costly emergency vet bill if your pet suddenly starts throwing up when your regular vet’s office isn’t open.
You can also purchase an optional emergency fund add-on to help cover urgent vet costs. If a Pawp veterinarian advises you to visit a veterinary clinic in person, you could receive up to $3,000 per year to help pay the bill.
The unlimited 24/7 telehealth coverage costs $24 per month, while the emergency fund add-on costs $19 per month.
Credit Card
A credit card can help you pay for everyday expenses for your pet, including health care, when your bank account falls short. Many of the best credit cards for pet owners come with benefits, rewards and interest-free periods to help you pay down large balances without paying interest.
You can use a credit card for any purchase, but you must be creditworthy to get approved. If you’re not disciplined, you could rack up large high-interest-rate balances that aren’t easy to pay down.
CareCredit
CareCredit is a credit card that can help pay for your healthcare and your pets, including veterinary care, boarding, grooming, and daycare. CareCredit may be a better alternative than other credit cards due to promotional financing. When you spend at least $200 in a single transaction, you get deferred interest for six to 24 months. But if you can’t pay the balance in full before the promotion ends, you’ll pay all the earned interest on top of the remaining balance.
Financial Assistance
If you’re in dire straits and don’t have the funds to care for your cat or dog, contact your local animal control, vet’s office, or veterinary medical association to learn about local resources. For example, veterinary clinics in your area may offer inexpensive, routine preventive care on a sliding scale basis for low-income people.
You can also ask your veterinarian if they offer a payment plan or deferred payment option. If you’re having financial difficulties, let your vet know before the appointment. The vet can factor your economic situation into your pet’s care, such as only absolutely necessary testing or recommending economical treatments.
Frequently Asked Questions
Is It Okay To Not Have Pet Insurance?
Buying pet insurance is a personal choice, not one that fits every pet parent’s needs or budget. But remember that your pet could have an accident or fall ill at any time, so have an alternative solution to pay for their veterinary care. Alternatives to pet insurance could include a dedicated savings account, a credit card or other solutions like Pawp or CareCredit.
How Many Americans Have Pet Insurance?
Around 66%, or 86.9 million, of American households own a pet, according to the American Pet Products Association (APPA) National Pet Owners Survey. In 2023, owners insured around 5.7 million pets in the United States, according to the 2024 NAPHIA State of the Industry Report. Dogs represent roughly 79% of insured pets, and cats represent 22%.
Why Is Pet Care So Expensive in the US?
Pet care is expensive in North America due to a shortage of qualified veterinarians, supply cost increases and tech and health innovations. People are also spending more to care for their pets, going from over $136 billion in 2022 to an anticipated $150.6 billion in 2024, according to the APPA Survey. The report shows that pet owners spend around 67% of their pet budget on food, products and vet care. Pet owners say it’s worth it because their pets bring them stress relief and emotional support, improving their health and well-being.
Are Pet Insurance Premiums Tax Deductible?
You might be able to deduct part of your pet insurance premiums in some situations, such as if you have a guide dog or service animal. Speak with a tax professional to understand what you can deduct from your taxes and how to do so appropriately.
What Is the Average Vet Visit Bill in America?
The average routine vet visit bill in America is between $25 and $186, according to CareCredit data. But that doesn’t account for diagnostics, testing, further evaluation or treating your pet’s illness or injury. Veterinary visit costs vary widely by ZIP code, procedures, and your pet’s condition or disease.
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