Is Pet Insurance Worth It?

If your pet gets injured or sick, pet insurance helps cover medical expenses. What was once an obscure insurance product has been gaining steam. There are nearly 5.7 million cats and dogs insured in the U.S. in 2023, according to the “State of the Industry 2024” report by the North American Pet Health Insurance Association. That’s a 17.1% increase from the number of dogs and cats that were insured the previous year.

Pet insurance costs an average of $51 a month for dogs and $27 a month for cats, according to our analysis. That’s for a policy with $5,000 in annual coverage, a $250 deductible and 80% reimbursement level.

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When Is Pet Insurance Worth It?

Pet insurance can be a good way to help offset a major unexpected vet bill, like cancer treatment or a broken bone, which can cost thousands of dollars. Without pet insurance, you would have to pay out of pocket for vet expenses. You’ll need to weigh the monthly cost of pet insurance against potential vet expenses to determine if pet insurance is worth it for you.

For example, if you get socked with a large, unexpected vet bill, what you’ve paid in premiums can be far less than what you receive in reimbursement. And that’s the main point of pet insurance: To have financial protection against major vet bills.

Here’s an example of pet insurance being worth it:

• Premiums: Suppose you’ve been paying for pet insurance for your dog for three years at about $684 a year. That’s $2,052 so far in pet insurance premiums.
• A big vet bill: Then your dog ingests a small toy, which ends up costing $4,000 in vet bills. If you have a $500 deductible and a 90% reimbursement level, your out-of-pocket cost for the incident would be $850 ($500 deductible + 10% of 3,500 = $850).
• The result: Adding up premiums for three years and the toy incident, you’ve paid $2,902. Without pet insurance, you would have paid $4,000 for the vet. You’ve avoided paying about $1,100 by having pet insurance.

“What’s important to know is that four out of five pets will have an unexpected emergency. You don’t know if that’s going to come three months or three years after you get your pet,” says Walter Haugland, chief marketing officer at Pets Best. “It’s almost impossible to plan for the unexpected. So, that’s where pet insurance comes in.”

What Pet Insurance Costs

Pet insurance costs an average of $612 per year for dogs and $324 per year for cats, according to our analysis of pet insurance costs. That’s based on a policy with $5,000 in annual coverage with a $250 deductible and 80% reimbursement level.

Average Pet Insurance Costs

Type of pet	Average monthly cost for a policy with $5,000 annual coverage maximum	Average monthly cost for a policy with unlimited annual coverage
Puppy age 3 months	$42	$58
Dog age 2 years	$40	$58
Dog age 5 years	$52	$80
Dog age 7 years	$71	$108
Kitten age 3 months	$23	$30
Cat age 2 years	$22	$30
Cat age 5 years	$27	$38
Cat age 7 years	$35	$50

Source: Forbes Advisor analysis of pet insurance costs based on data from Forbes Advisor research for coverage with a $250 deductible and 80% reimbursement level.

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Average Treatment Costs for Pets

The cost of veterinarian services increased 7.6% from May 2023 to May 2024, according to the Bureau of Labor Statistics Consumer Price Index. When you’re trying to determine if pet insurance is worthwhile, it’s good to know what kind of vet bills you could face. Here are examples of average treatment costs, courtesy of Pets Best.

Condition	Average cost of treatment for dogs	Average cost of treatment for cats
Cancer	$4,100	$3,800
Ingested foreign objects	$3,500	$3,400
Diabetes	$2,700	$1,900
Broken bone	$2,700	$2,300
Heart murmur	$1,200	$1,400
Arthritis	$700	$500
Dental disease	$600	$800
Bladder infection/UTI	$400	$1,100
Eye conditions	$300	$260
Feline kidney disease	N/A	$1,300

Source: Pets Best, based on claims costs in one year, from 2017 to 2021

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In addition, pet treatment costs are steadily rising. Data from Pets Best shows that the cost of treating a broken bone is up 16% year-over-year for dogs and up 6% YoY year-over-year for cats.

It’s also worth mentioning that some pets are prone to hereditary conditions that could increase their cost of care. For example, large dogs like border collies, Labrador retrievers, Great Danes and German shepherds are more likely to have hip dysplasia, which could cost between $3,500 and $7,000 to treat, sometimes even more, depending on the situation.

Factors Affecting Pet Insurance Costs

Your pet insurance costs will vary depending on factors such as:

• Pet’s breed. Some pets are more susceptible to certain conditions than others. For this reason, it may cost more to insure certain pets. For example, larger dogs usually cost more to insure.
• Pet’s age. As pets age, they’re more susceptible to accidents and illnesses.
• Pet’s gender. Female pets may be considered a lower risk, which can result in lower pet insurance premiums.
• Location. Vet costs vary by location. If the vet costs are higher in your area, you may pay more for coverage.

Pet Insurance Deductibles, Reimbursement and Coverage Caps

When choosing a pet insurance policy, you select a deductible amount, which is the amount you pay before pet insurance starts to pay for services. Common pet insurance deductible amounts range from $50 to $1,000. Generally, there are two different types of pet insurance deductibles:

• Annual deductible: You’re responsible for paying the deductible each policy term. Once your deductible is met during the policy term, you won’t have to pay it again until the next year.
• Per-condition deductible: You pay a deductible for each condition or incident. For example, if your pet has chronic allergies, you pay a deductible for medical expenses related to that treatment. Once your deductible is met, you won’t pay it again for vet expenses related to that condition. However, you have to pay another deductible if your pet develops a new condition or incident.

You select a reimbursement level, which is the portion of vet expenses your insurer will pay (after the deductible). Common reimbursement levels are usually 70%, 80% or 90%. However, some insurance companies like Figo reimburse 100% of your vet expenses.

Your pet insurance company may also let you choose an annual coverage cap, such as $5,000. Some companies, such as Pets Best, Embrace and Spot, have unlimited annual coverage.

What Does Pet Insurance Cover?

The biggest difference between human health insurance and pet insurance is that pet insurance plans are typically reimbursement-based, meaning you pay up-front for the pet’s vet bills and then submit a claim to the insurance company. Also, pet insurance doesn’t have provider networks like human health insurance does. You can submit vet bills for any licensed veterinarian to your pet insurance company.

There are generally three types of pet insurance plans:

• Accident and illness plan: This is the most common type of pet insurance plan and covers the most problems, like broken bones, toxic ingestion, allergies, cancer and skin infection. It covers vet expenses like vet visits, surgeries, diagnostic testing and medication.
• Accident-only plan: This type of plan only covers accident-related vet expenses.
• Wellness plan: Some insurers sell an optional wellness plan for routine vet expenses like annual wellness exams, vaccinations, microchipping and flea, tick and heartworm prevention.

Related: What Does Pet Insurance Cover? 

What Does Pet Insurance Not Cover?

Here are some common pet insurance exclusions:

• Experimental treatment. This includes treatments that are considered experimental, investigational and not within the standard of care accepted by the veterinary medical board in your state.
• Food, dietary and nutritional supplements. Your pet’s dietary expenses are usually not covered by pet insurance, but some plans cover prescription food and supplements.
• Grooming. Services such as baths, dips, nail trims and shampoos are typically not covered by pet insurance.
• Non-veterinary expenses. This includes expenses such as any license or certification, compliance with a government rule or regulation (such as a dog license), record access or copying, and waste disposal services.
• Pre-existing conditions. Pet insurance for pre-existing conditions includes illnesses and injuries that your pet had before your coverage started. Some plans do not permanently exclude pre-existing conditions. For example, ASPCA pet insurance covers “curable” pre-existing conditions if your pet has not shown signs or symptoms of certain conditions for 180 days. If the condition recurs after 180 days, it is covered like a new problem.

Should You Get Pet Insurance?

When deciding if pet insurance is worth it, ask yourself:

• What are you willing to pay out-of-pocket for vet bills?
• How would you pay for costly vet expenses if something did come up, like an accident or an illness such as cancer?

You might have an idea right now of how much you’d be willing to pay in vet bills for an emergency. But if your pet is actually faced with a life or death situation, “you might be willing to stretch the budget further than you ever imagined,” says Haugland.

“Overall, buying pet insurance can give pet owners peace of mind and options so they can make the best care decision possible for a pet, without the financial risk,” Haugland says.

Alternatives to Pet Insurance

If you’re not interested in buying pet insurance, here are some alternatives to pay for a pet’s veterinary care.

• Savings account. You can set aside money in a savings account for your vet bills. The advantage of this strategy is that you won’t pay an annual pet insurance premium. The disadvantage is that you could take a considerable bite out of your savings if your pet suffers a major accident or illness, such as a torn ACL or cancer.
• Credit card. You could pay your pet’s vet bill with a credit card. The downside to this approach is that the average credit card interest rate is 27.65%.
• Financing. You could take out a personal loan from a bank or lending institution to pay for the vet bill.
• Payment plan. You may be able to negotiate a weekly or monthly payment plan with your veterinarian.
• Fundraising. You can look into crowdfunding your vet bills with fundraising platforms such as GoFundMe or Waggle, a pet-dedicated crowdfunding site that sends funds directed to verified veterinarians.
• Other alternatives. If you have trouble paying for veterinarian bills, ask if your vet accepts CareCredit, a credit card designed for healthcare expenses, or look into other pet financial aid options. Here is a list of resources from The Humane Society.