Pet insurance is an elective coverage that is essentially health insurance for pets. It has premiums, annual deductibles, and co-pays just like human insurance. But, even more than human health insurance, pet insurance varies in its coverage and cost.
According to Consumer Reports, in 2023, there were an estimated 80.1 million dogs and 66.9 million cats in the United States, but only 5.7 million of them were insured. Do those few know something the rest of us don’t?
Here’s a breakdown of the topic, including coverages, whether it’s accepted by your veterinarian, and if it’s worth the cost.
Is Pet Insurance Important
Financial considerations have always been a substantial barrier to veterinary care. According to a 2025 Gallup poll, 52 percent of U.S. pet owners report having skipped veterinary care. Of those, 71 percent did so because of cost.According to MarketWatch, the average annual pet healthcare costs, including routine, sick, and emergency care, range from $374 to $965 for cats and $534 to $1,285 for dogs.
However, emergencies usually spike those costs. A broken bone can range from $2,200 to $2,400, a urinary tract infection costs between $400 and $1,050, and cancer treatments can run from $3,200 to $8,000.
Pet insurance appears to be a viable solution to this problem. But unfortunately, having pet insurance may eliminate only part of the problem.
Dr. Kathryn Dench, chief scientific advisor at Paw Origins, told The Epoch Times, “Pet insurance is one of the most important financial tools pet owners can have, but only if they understand what they’re buying.”
She said she’s seen many heartbreaking decisions made because the pet owner had the wrong kind of insurance.
Not All Pet Insurance Coverages Are Created Equal
“Marketing language can be misleading; words like ‘comprehensive’ don’t always mean what pet owners think,” said Dr. Dench.Some policies are time-limited and stop covering a condition after 12 months, even if treatment is still needed. Others only cover wellness or accidents, not illnesses.
For example, plans from Trupanion help cover new illnesses, injuries, surgery, hospital stays, medications, and advanced dental care. But plans from Banfield Pet Hospital only offer wellness care. They are, according to Consumer Reports, “more like a veterinary flexible spending account.”
There are various restrictions and costs associated with most policies. These could include restrictions on certain breeds or medical conditions. Also, pet insurance doesn’t cover preexisting conditions.
Because of this, Dr. Dench said, “It’s essential to read the fine print.”
What About Your Veterinarian?
Pet insurance isn’t accepted at the veterinarian’s office the same way that human insurance is accepted at the doctor’s office.“Most veterinary practices do not have direct billing arrangements with insurers. This means the owner typically pays the bill upfront, and the vet provides documentation to support the owner’s claim,” said Dench.
It’s the exception for a pet insurance company to offer direct claims. But some companies will offer it. Ultimately, it depends on the clinic’s willingness to process direct claims. Treatment can be delayed since the vet may need to receive pre-approval for the intended procedure from the insurance provider.
What to Look for in a Pet Insurance Policy
There are several coverages and restrictions you’ll want to look for when deciding on pet insurance. For example, some plans will have limitations for conditions common to your pet’s breed—for example, hip dysplasia in German Shepherds.Dr. Dench said that lifetime coverage is important. That means reinstating the full annual limit each year, which is essential for chronic diseases like diabetes or arthritis. Some insurance plans will have a cap.
Look for per-condition limit versus annual limits across all conditions. You‘ll also want to look for coverage for diagnostics, medications, referrals, and emergency care. Co-pays can sneak up on you, so check to see what you’ll be responsible for.
Many plans don’t cover dental work. According to CareCredit, the national average cost of a veterinarian dental cleaning for dogs is $376, with the national average cost for cats being $314. Look for any preventative care coverage.
Cost of Pet Insurance
The cost of pet insurance depends on the company and coverage. But there are some ways to anticipate premium costs in the long term.Most buyers sign up for insurance when their pets are young. This is when premiums are at their lowest. But according to the South Carolina Department of Insurance (SCDOI), most companies start to increase their premiums after four or five years.
Before you buy, learn how your premium will increase by using the insurer’s online quote engine. It will give you premiums for different pets’ ages. Ask for a monthly premium quote using your pet’s age, then ask for quotes for the next 10 to 12 years.
Multiply each age’s monthly premium by 12, then add the resulting premiums together. This will tell you what insurance will likely cost over your pet’s lifespan. Is the cost worth it? That’s up to you.
Is Pet Insurance Right for You
SCDOI states that every year, there’s a 3 percent chance of you facing a vet bill of $1,000 or more. This may tip the odds toward not wanting to purchase it.But according to Dr. Dench, “Pet insurance is worth it, but not all policies are created equal. I’ve seen too many clients burned by cheap policies with major exclusions.”
She said that those pet owners who purchase quality coverage are often able to provide their pet with life-saving treatments.
