Pet insurance runs about $62 monthly for dogs and $32 for cats, covering around 70-100% of eligible vet bills after deductibles. Here’s the kicker: less than 4% of American pet owners actually buy it, even though veterinary spending hit $32.3 billion in 2021. Most policies cover accidents and illnesses but exclude pre-existing conditions and routine care. The industry’s growing fast—17% increase in insured pets last year—but adoption remains stubbornly low. The math gets complicated depending on your pet’s health and your financial cushion.
Design Highlights
- Pet insurance covers 70-100% of eligible expenses for accidents and illnesses, protecting owners from unexpected veterinary bills averaging $32.3 billion annually.
- Average costs are $62.44 monthly for dogs and $32.21 for cats, with policyholders filing an average of 3.07 claims per policy.
- Pre-existing conditions are excluded, and deductibles, co-pays, and coverage limits require owners to pay significant out-of-pocket expenses.
- Routine and preventive care typically require separate wellness plans, as standard policies focus primarily on accidents and illnesses.
- Only 4% of American pet owners have insurance despite 17% year-over-year growth, suggesting value depends on individual financial circumstances.
Why do fewer than 4% of American pet owners have insurance for their furry companions when the market is exploding at a nearly 12% annual growth rate? The numbers tell a contradictory story. In 2024, the North American pet insurance market covered 7.03 million pets, up from 6.25 million the previous year. That’s a solid 12.2% jump. Yet the vast majority of pet owners remain uninsured, citing lack of awareness and perceived cost as the primary barriers.
The cost question deserves scrutiny. Dog insurance averages $62.44 monthly in 2025, while cat coverage runs about $32.21. Annual premiums swing wildly depending on coverage tier, ranging from $46 to $676 for dogs and $25 to $383 for cats. Those numbers have climbed thanks to inflation and veterinary costs that keep rising.
Dog insurance costs average $62.44 monthly while cat coverage runs $32.21, with annual premiums ranging from $46 to $676 depending on coverage tier.
But here’s the thing: the average policyholder files 3.07 claims per policy, with 29.8% of those claims going toward medication alone.
The global pet insurance market is projected to hit $19.15 billion by 2032, growing at an 11.9% CAGR. That’s not pocket change. Competition is intensifying as more companies flood the market with diverse products, pushing for greater transparency and customization. The industry is clearly adapting, moving from niche curiosity to mainstream consideration. The North American marketplace now includes about 30 pet insurance companies competing for customer attention.
What does coverage actually provide? Most policies, about 85.18%, cover both accidents and illnesses. Reimbursement typically ranges from 70% to 100% of eligible expenses. Extensive plans can include diagnostics, prescriptions, and even routine care. Pet owners can also add wellness plans that cover preventive care like vaccinations, flea and tick prevention, and wellness exams to help manage predictable healthcare costs.
The practical benefit? Insurance removes the financial panic when a veterinarian recommends emergency surgery or expensive treatment. No more agonizing over whether you can afford to save your pet’s life. With veterinary spending reaching $32.3 billion in 2021, the financial stakes have never been higher for pet owners facing unexpected medical bills.
The downsides matter too. Pre-existing conditions are virtually always excluded. Annual or per-incident limits can cap your coverage when you need it most. Deductibles and co-pays still mean money out of your pocket. And unless specifically included, routine care won’t be covered by standard policies.
The adoption rate tells the real story. Despite growth rates between 20-29% year-over-year, penetration remains stubbornly low. Consumer awareness is increasing, sure, but slowly.
The U.S. market saw a 17% increase in insured pets from 2022 to 2023, yet we’re still talking about single-digit adoption percentages. The question isn’t whether pet insurance works. It’s whether enough people know it exists and believe the math works in their favor.
Frequently Asked Questions
What Percentage of Pet Owners Actually Have Pet Insurance?
Only about 4% of U.S. pet owners actually have pet insurance as of 2023-2025.
That’s roughly 5.7 million insured pets out of 94 million pet-owning households.
Pretty dismal penetration, honestly. The numbers are growing fast though—20% to 29% year over year—as more people catch on.
Dogs dominate the insured pet population at 75-80%, while cats lag behind at around 20-23%.
Most pet owners are still going uninsured, rolling the dice on vet bills.
Can I Use Any Veterinarian With My Pet Insurance Plan?
Yeah, pet owners can use basically any licensed vet in the U.S. and Canada.
No networks. No in-network nonsense. Emergency clinics, specialists, that random vet three towns over—all fair game.
It’s reimbursement-based though, meaning owners pay upfront and get money back later.
Some insurers offer direct payment to vets, but that’s less common. Just make sure the vet is licensed and the treatment isn’t for a pre-existing condition.
Otherwise, go wherever.
Does Pet Insurance Cover Pre-Existing Conditions My Pet Already Has?
Most pet insurance won’t cover pre-existing conditions—anything that showed symptoms before coverage started is typically out. That’s just how it works.
However, some curable conditions might get covered if the pet stays symptom-free for around 180 days. A few insurers, like AKC Pet Insurance, claim they’ll cover pre-existing conditions after 365 days of continuous coverage.
But chronic stuff like diabetes or arthritis? Usually excluded permanently.
Pets can still enroll for future unrelated issues, though.
Are Exotic Pets Like Birds or Reptiles Eligible for Insurance?
Yes, exotic pets are eligible for insurance, though options are more limited than for dogs and cats. Several insurers cover birds, reptiles, rabbits, ferrets, and small mammals like guinea pigs and hedgehogs.
MetLife offers plans in 19 states starting at $24 monthly for reptiles. Nationwide provides extensive coverage too.
However, dangerous animals like crocodiles, primates, and large birds of prey are excluded.
Coverage definitions vary wildly by insurer, so pet owners need to verify their specific species qualifies.
How Long Does It Take to Get Reimbursed After Filing?
Most pet insurance claims get processed within 5 to 15 business days once all the paperwork arrives.
Some insurers like Fetch aim for around 15 days, though it can happen faster—2 to 10 days if direct deposit is set up.
First-time claims? Those take longer, sometimes up to 30 days, because insurers need to review medical history and verify coverage.
Missing documents will slow things down too.
Pro tip: electronic submissions beat snail mail every time.
