Pet owners have consistently signaled a strong willingness to invest in medical care (see this report). That commitment, combined with broader access to specialty and emergency medicine, has helped fuel rapid growth in pet insurance. Authoritative industry sources report the U.S. market reached roughly $3.9 billion in direct premium written and insured more than 5 million pets at year‑end 2023, with premium growth of more than 20% versus the prior year (NAPHIA; AM Best). Meanwhile, veterinary services prices have risen faster than overall inflation—the BLS Veterinary Services CPI shows mid‑ to high‑single‑digit year‑over‑year increases through 2024—reinforcing demand for financial protection. For additional context on what drives veterinary fees, see the AVMA’s overview ($17 billion on pet health care). In the UK, insurers paid record pet insurance claims in 2023 amid rising treatment costs (Association of British Insurers).
Just like human health insurance, pet insurance is designed to buffer you from four‑ and five‑figure surprises. The best pet insurance typically lets you choose annual limits (e.g., $5,000 up to unlimited in many states) and reimbursement levels (often 70%–90%; some up to 100%). Today’s specialty care makes those limits matter: an ER episode often runs $1,000–$2,000+, an MRI/CT can be $1,500–$3,500+, cruciate (knee) surgery commonly costs $3,000–$7,000+, and multi‑modal cancer care can exceed $10,000 in specialty settings (CareCredit/Synchrony; BluePearl Specialty + Emergency). Broad accident‑and‑illness coverage with robust limits is what cushions those shocks.
“Thanks to pet insurance, I’ve been able to provide intensive, emergency care to pets whose owners wouldn’t have been able to otherwise afford the care their pet needed to make a full recovery.” Heather B. LoenserDVM Veterinary Advisor, Public and Professional Affairs at the American Animal Hospital Association
Financially, most policyholders should plan to pay more in premiums than they receive in claims in a typical year, but that trade‑off buys protection against large, unexpected expenses. Market benchmarks show average accident‑and‑illness premiums around $50–$55 per month for dogs and $30–$35 for cats (According to the North American Pet Health Insurance Association). Industry loss ratios generally run in the mid‑ to high‑70% range as claims costs rise with medical inflation (AM Best). With the BLS Veterinary Services CPI remaining elevated, pet insurance can be a practical hedge against price shocks—especially for emergencies, surgery, and oncology care.
Is Pet Insurance Worth It? What the Experts Are Saying
Yes — for healthy pets
“There’s really no age preference that determines when you should or shouldn’t get pet insurance. The main thing is to get insurance while your pet is still healthy. Keep in mind that purebred dogs sometimes carry genetic complexities that put them at higher risk for diseases. You don’t want to wait until you’re facing a grim diagnosis. At that point, your application could be denied.” Lisa TheriaultFounder of Your Dog’s Health Matters
Yes — especially for young pets
“Pet insurance is always a good idea, unless you really do have a few thousand set aside for an emergency. The best time to get insurance is when you have a young pet with no pre-existing conditions. While they are young, you hopefully won’t have to use it much, but it will be worth it later down the road when they do start aging and/or experience some kind of veterinary emergency.” Jamie ThomasExecutive Director of Motley Zoo Animal Rescue
Yes — but not for older pets
“In our experience, we have seen that people often purchase pet insurance too late in their pet’s life for it to be useful. Pets are not covered for pre-existing conditions, and these generally arise as the pet ages. So we tell owners that if they wish to get insurance it’s better to do so for a younger animal.” Sonali NigamFounder of Dear Mittens
No — for routine care
“Wellness care coverage is a poor deal. Much veterinary care consists of routine annual checkups, preventive care, and elective services not covered by accident and illness plans. You can typically add coverage for that, but it makes the total monthly premium even higher.” Checkbook pet insurance analysis
What pet insurance coverage should you look for?
Different types of pets require different types of coverage—and breed matters for pricing and risk. After you’ve narrowed down which issues your cat or dog is most susceptible to, compare policies for hereditary/congenital coverage, orthopedic waiting periods, and whether exam fees and dental illness are included. Insurers explicitly rate by breed (e.g., French Bulldogs and giant breeds are often quoted substantially higher than similar mixed‑breed dogs due to expected claims) (Lemonade; AVMA on brachycephalic risks). You can also check out best pet insurance to see the companies that stood out in our research.
Prescription drugs
No matter what kind of pet you have, they will likely need prescription medication at some point. Ongoing therapies can add up—especially newer biologics. The FDA has approved monthly monoclonal antibodies for osteoarthritis pain control: frunevetmab for cats (Solensia, 2022) and bedinvetmab for dogs (Librela, 2023). These are typically administered monthly and may be used long‑term, increasing cumulative costs. Even relatively minor recurring issues, like ear infections, can add up over time, with typical bottles of ointment costing around $30.
Coverage based on actual pet bills
Most plans reimburse you after you pay your veterinarian; stronger designs base reimbursement on your actual vet bill rather than a preset benefit schedule, and let you choose 70%–90% reimbursement (some up to 100%). Benefit schedules set a maximum per diagnosis and can leave larger gaps if your clinic charges more. Compare policies carefully for reimbursement basis and sub‑limits (Wirecutter; Consumer Reports).
No limits for specific conditions
Annual limits are common (higher limits raise premiums), but some plans also impose condition‑specific caps or orthopedic restrictions. Pay close attention to cruciate ligament and other orthopedic terms—many policies have longer waiting periods and bilateral condition clauses that can restrict coverage if one side is pre‑existing (Embrace orthopedic terms; Wirecutter). Align your annual limit to realistic episode costs: ER visits often run $1,000–$2,000+, TPLO/TTA knee surgery $3,000–$7,000+, and advanced imaging $1,500–$3,500+ (BluePearl).
Lifetime deductible for young purebred dogs
This coverage is unique to Trupanion, but it’s worth considering if you’re looking to insure a young, purebred dog. Instead of meeting a deductible every year, Trupanion customers pay a one‑time, per‑condition lifetime deductible. That can be helpful for chronic issues (e.g., cruciate disease, IVDD) where total care can reach thousands of dollars; TPLO/TTA surgery alone often runs $3,000–$7,000+ and neurosurgery for IVDD can exceed $5,000–$10,000+ in specialty settings (Trupanion cost of care; BluePearl). Once you meet your condition deductible, you’d only have to pay your coinsurance share. At participating hospitals, Trupanion can also pay veterinarians directly at checkout, reducing your out‑of‑pocket burden.
How much does pet insurance cost?
According to the North American Pet Health Insurance Association (NAPHIA), the average pet insurance policy for accident‑and‑illness coverage in the U.S. typically runs about $50–$55 per month for dogs and $30–$35 for cats. Prices vary widely by age, breed, and location—as well as the annual limit, deductible, and reimbursement level you select. Breed is a core rating factor; brachycephalic dogs (e.g., French Bulldog) and giant breeds are routinely quoted higher than similar mixed‑breed dogs due to elevated risks like airway disease, orthopedic issues, and certain cancers (Lemonade on pricing factors; AVMA). Continued veterinary services inflation also puts upward pressure on premiums (BLS Veterinary Services CPI).
In general, age and species drive the largest price differences—older dogs are the most expensive to insure—while breed and location can materially increase or decrease quotes. For example, French Bulldogs and other short‑nosed breeds tend to carry higher premiums than similarly aged mixed‑breed dogs because of well‑documented airway, eye, and skin morbidities (AVMA).
Quotes typically rise sharply in the first several years and continue climbing with age. Enrolling early helps avoid pre‑existing condition exclusions and, for some insurers, shorter orthopedic waiting periods—key for cruciate‑prone and large breeds (Embrace orthopedic terms; Consumer Reports).
The Bottom Line
Pet insurance is worth it for many households when the goal is to avoid choosing between care and cost in a crisis. Satisfaction hinges on claims performance and price stability: J.D. Power’s 2024 U.S. study notes premium increases are the biggest drag on satisfaction, while fast, transparent claims handling drives stronger scores (J.D. Power). Objective indicators remain favorable: UK regulators report claim acceptance rates roughly around 90% across providers, with sizable average payouts—evidence that coverage delivers value when claims are approved (FCA value measures). In the U.S., adoption of the NAIC Pet Insurance Model Act is improving disclosures on pre‑existing conditions and waiting periods, aiming to reduce surprise denials. Given rising medical costs and expanding treatment options, enrolling early and selecting limits aligned to modern care costs is the most reliable way to secure broad protection.