Pet insurance helps cover veterinary costs when your dog or cat gets sick or injured, working on a reimbursement model where you pay upfront and submit claims for repayment. With over 7 million pets now insured in North America and the average American spending $4,800 annually on their pets—including $1,242 on vet visits alone—pet insurance has become an increasingly popular way to manage unpredictable healthcare expenses. This guide explains exactly what pet insurance covers, how much it costs ($62/month average for dogs, $32/month for cats), what's excluded, and provides a clear framework to help you decide whether it's worth the investment for your furry family member. Whether you're weighing pet insurance against building an emergency fund or wondering if coverage makes sense for your senior cat, you'll find the answers here.
What Is Pet Insurance?
Pet insurance is a type of coverage that helps offset veterinary costs when your pet needs medical care. Unlike human health insurance, which typically pays healthcare providers directly, pet insurance operates on a reimbursement model—you pay the vet bill upfront, then submit a claim to your insurer for partial repayment based on your policy terms.1
The concept dates back further than most people realize. Pet insurance has existed outside the United States since the early 1900s, but American pets had to wait until 1982—when Lassie received the first US pet insurance policy—for coverage to become available domestically.2
Today, the pet insurance industry has grown substantially. Total premium volume for pet insurance in the US reached $3.9 billion in 2023, with 7.03 million pets insured across North America by the end of 2024—a 12.2% increase from the previous year.23 Despite this growth, only about 29% of pet owners currently have coverage, suggesting significant room for expansion as awareness grows.4
Pet insurance functions more like property insurance than health insurance. Your pet is considered property under most insurance frameworks, which is why coverage works on a reimbursement basis rather than the direct-pay model common with human health plans.
Understanding how pet insurance fits into your overall financial picture is essential. If you're new to insurance concepts, our insurance basics guide provides foundational knowledge that applies across all insurance types.
Types of Pet Insurance Plans
Pet insurance comes in three main coverage tiers, each designed for different needs and budgets.
Accident-Only Coverage
The most affordable option, accident-only plans cover unexpected injuries like broken bones, cuts, poisoning, and foreign object ingestion. These plans typically cost around $17/month for dogs and $10/month for cats.3 However, they won't cover any illnesses—so conditions like cancer, infections, or diabetes would be entirely out-of-pocket expenses.
Accident and Illness Coverage
This is the most common type of pet insurance, covering both accidents and a wide range of illnesses including cancer, infections, hereditary diseases, and chronic conditions. Average costs run about $62/month for dogs and $32/month for cats.2 Most pet owners find this coverage level offers the best balance of protection and affordability.
Wellness/Preventive Care Plans
Wellness plans cover routine care like vaccinations, annual exams, dental cleanings, flea/tick prevention, and spaying/neutering. These are typically sold as add-ons to accident and illness plans rather than standalone coverage, adding approximately $10-$25/month to your premium.1
| Plan Type | Dogs (Monthly) | Cats (Monthly) | What's Covered |
|---|---|---|---|
| Accident-Only | ~$17 | ~$10 | Injuries, emergencies, poisoning |
| Accident & Illness | ~$62 | ~$32 | Accidents + diseases, cancer, infections |
| Comprehensive + Wellness | $66-$81+ | $42-$57+ | Everything above + routine care |
What Pet Insurance Covers
Understanding exactly what your policy covers helps you avoid surprises when you need to file a claim.
Accidents and Injuries
All pet insurance plans cover unexpected accidents, including:
- Broken bones and fractures
- Cuts, lacerations, and bite wounds
- Ingestion of foreign objects
- Poisoning and toxic exposure
- Vehicle-related injuries
- Burns and heat stroke
Illnesses (Accident & Illness Plans)
Comprehensive plans extend coverage to medical conditions:
- Acute illnesses: Infections, digestive issues, respiratory problems
- Chronic conditions: Diabetes, arthritis, allergies, thyroid disorders
- Cancer: Including chemotherapy and radiation therapy
- Hereditary conditions: Hip dysplasia, heart disease, and breed-specific issues
- Congenital conditions: Birth defects that may manifest later
Emergency Care and Hospitalization
When serious situations arise, pet insurance covers:
- Emergency room visits
- Surgery and anesthesia
- Hospitalization and overnight stays
- Blood transfusions
- Oxygen therapy
- Intensive care
Diagnostic Tests and Medications
Most plans include:
- Blood work and lab tests
- X-rays and imaging
- Ultrasounds and MRIs
- Prescription medications
- Specialist consultations
Alternative Therapies (Select Plans)
Some comprehensive plans—like ASPCA's Complete Coverage—include alternative treatments such as chiropractic care, hydrotherapy, acupuncture, and even stem cell therapy.5
What Pet Insurance Doesn't Cover
Every pet insurance policy has exclusions. Knowing these upfront prevents frustrating claim denials.
Pre-Existing Conditions
The most significant exclusion is pre-existing conditions—any illness, injury, or symptoms present before your policy start date or during the waiting period. This is why enrolling your pet while they're young and healthy is advantageous.1
Pre-existing condition definitions are strict. Even symptoms in your pet's medical records that haven't been formally diagnosed can be excluded. Get your pet insured before any health issues arise if possible.
However, some insurers make exceptions for "curable" pre-existing conditions:
- ASPCA/Spot: Covers curable conditions if cured and treatment-free for 180 days (excludes knee/ligament issues)
- Embrace: Covers curable conditions after 12 months symptom-free
- Nationwide: Covers curable conditions after 6 months symptom-free with vet documentation
- MetLife: Uniquely covers conditions previously reimbursed by a former insurer1
Other Common Exclusions
- Cosmetic procedures: Tail docking, ear cropping, declawing
- Breeding and pregnancy: Not covered in standard policies (some providers offer breeding riders)
- Behavioral therapies: Usually excluded unless added as an optional benefit
- Routine/preventive care: Requires a separate wellness add-on
- Exotic pets and horses: Most plans focus exclusively on dogs and cats
- Working animals and newborn puppies: Generally excluded
How Much Does Pet Insurance Cost?
Pet insurance premiums vary significantly based on several factors. Understanding these helps you find coverage that fits your budget.
Average Costs by Pet Type
Based on 2023 industry data:23
| Coverage Type | Dogs (Annual) | Dogs (Monthly) | Cats (Annual) | Cats (Monthly) |
|---|---|---|---|---|
| Accident-Only | ~$204 | ~$17 | ~$120 | ~$10 |
| Accident & Illness | $749 | $56 | $383 | $32 |
For more specific quotes, dog insurance typically ranges from $30-$71/month for $5,000 annual coverage and $36-$101/month for unlimited coverage. Cat insurance ranges from $18-$34/month for $5,000 coverage and $18-$62/month for unlimited.1
Factors That Affect Your Premium
Age: Younger pets cost less to insure. Premiums increase as pets age due to higher health risks.
Breed: Breeds prone to specific health conditions (like Bulldogs with respiratory issues or German Shepherds with hip dysplasia) typically have higher premiums.
Location: Urban areas with higher veterinary costs translate to higher insurance premiums.
Coverage Level: Higher annual limits and lower deductibles increase your premium.
Deductible Choice: Deductibles typically range from $100 to $1,000+. Higher deductibles lower your monthly premium.
Reimbursement Percentage: Most plans offer 70%, 80%, or 90% reimbursement. Higher reimbursement rates mean higher premiums.
To lower your premium without sacrificing protection, consider a higher deductible if you have savings to cover smaller vet bills, or choose 70% reimbursement instead of 90%. The monthly savings can be substantial while still protecting against catastrophic expenses.
How Pet Insurance Claims Work
Understanding the claims process helps you get reimbursed efficiently when you need coverage.
The Pay-Then-Reimburse Model
Here's how pet insurance typically works:15
- Visit the vet: Take your pet for treatment and pay the bill in full
- Submit your claim: Use the insurer's app, online portal, email, or mail
- Claims review: The insurer reviews your claim against your policy
- Receive reimbursement: Get paid via direct deposit or check
Processing times vary significantly—some insurers like Lemonade handle about 50% of claims instantly, while others may take 30+ days.1
Direct Vet Pay Options
Some insurers now offer direct payment to veterinarians, eliminating the need to pay upfront. Ask providers about this option if cash flow is a concern.
Reimbursement Calculation Example
Understanding how reimbursement works helps set realistic expectations:
Formula: (Vet Bill - Deductible) × Reimbursement % = Insurance Payment
Example: Your dog needs surgery costing $1,000. You have a $250 deductible and 80% reimbursement:
- $1,000 - $250 = $750 (eligible for reimbursement)
- $750 × 80% = $600 (insurance pays)
- Your out-of-pocket: $400
Is Pet Insurance Worth It?
This is the question every pet owner asks. The answer depends on your financial situation, your pet's health profile, and your risk tolerance.
The Case For Pet Insurance
The numbers tell a compelling story:
- 92% of pet owners with insurance say it's worth it4
- 45% of pet parents experienced a major pet health event in 2023
- 82% of those weren't financially prepared for the expense4
- Americans spent an average of $4,800 on pets in 2023, including $1,242 on vet visits4
Consider these potential veterinary costs without insurance:1
| Procedure | Cost Range |
|---|---|
| Routine check-up | $100-$150 |
| Wound treatment | $800-$2,500 |
| ACL surgery | $1,500-$4,000 |
| Emergency surgery | $1,500-$5,000 |
| Cancer radiation therapy | $2,500-$7,000 |
| 3-5 day hospitalization | $1,500-$3,500 |
A single ACL surgery could cost more than five years of premium payments.
Who Benefits Most From Coverage
Pet insurance makes the most sense for:
- Young, healthy pets: Lowest premiums with no pre-existing condition exclusions
- Breeds prone to hereditary conditions: Bulldogs, Great Danes, German Shepherds, etc.
- Active pets: Higher injury risk from outdoor activities
- Pet owners without substantial savings: Provides protection against unexpected major expenses
- Those who prefer predictable monthly budgeting: Spreads potential costs over time
Who Might Skip Coverage
Pet insurance may be less valuable for:
- Senior pets with pre-existing conditions: Many issues may already be excluded
- Pet owners with robust emergency savings: Could self-insure for typical expenses
- Owners of mixed-breed dogs: Generally healthier with fewer hereditary conditions
The connection between pet insurance and your broader financial health is real. Just as you might maintain an emergency fund for unexpected human expenses, pet insurance serves a similar purpose for animal healthcare costs.
Alternatives to Pet Insurance
If traditional pet insurance doesn't fit your situation, several alternatives exist.
Pet Savings Account
Set aside money monthly in a dedicated savings account for veterinary expenses. This gives you flexibility without dealing with exclusions or claims—but requires discipline and leaves you unprotected if a major expense occurs before you've saved enough.
Medical Credit Cards
Options like CareCredit offer financing specifically for medical and veterinary expenses, often with promotional 0% interest periods. This spreads costs but still requires repayment.
Pet Emergency Fund Services
Services like Pawp offer up to $3,000 in emergency coverage for a lower monthly fee than traditional insurance, though with more limited benefits.
Veterinary Discount Plans
Programs like Pet Assure provide discounted rates at participating veterinarians. These aren't insurance but can reduce routine costs.
Employer Benefits
About 16% of companies now offer pet insurance as an employee benefit, sometimes with group discounts or employer contributions.4 Check with your HR department.
How to Choose a Pet Insurance Policy
Selecting the right policy requires evaluating your specific circumstances.
Evaluate Your Pet's Needs
Consider:
- Age: Older pets face higher premiums and more exclusions
- Breed: Research breed-specific health issues
- Lifestyle: Active outdoor pets may need more comprehensive coverage
- Current health: Any existing conditions will likely be excluded
Compare Coverage Carefully
Look beyond premium prices:
- What's covered vs. excluded: Read the policy details
- Annual limits: $5,000, $10,000, unlimited?
- Per-incident limits: Some policies cap payouts per condition
- Waiting periods: Typically 14 days for accidents, 30+ days for illnesses
- Hereditary condition coverage: Not all plans include this
Get Multiple Quotes
Prices vary dramatically between providers. Get at least three quotes with identical coverage levels to compare apples-to-apples.
Read Customer Reviews
Check claims satisfaction ratings and customer experiences. A cheap policy that denies claims isn't actually saving you money.
Just as you'd compare options when shopping for health insurance, take time to understand exactly what each pet insurance policy offers before committing.
Conclusion
Pet insurance can be a valuable financial tool for managing the unpredictable costs of veterinary care. With average accident and illness premiums of $62/month for dogs and $32/month for cats, coverage protects against emergency bills that can easily reach thousands of dollars for surgery, hospitalization, or cancer treatment.
The best time to get pet insurance is when your pet is young and healthy—before any conditions develop that could be excluded. If you're budget-conscious, an accident-only plan provides basic protection at minimal cost, while comprehensive accident and illness coverage offers the most peace of mind for most pet owners.
Whether pet insurance is "worth it" ultimately depends on your financial situation and risk tolerance. If you have robust savings and can comfortably absorb a $5,000 emergency vet bill, self-insuring through a dedicated pet savings account might work. But for most pet owners, the predictable monthly premium offers valuable protection against the financial stress of unexpected pet health crises.
Start by getting quotes from multiple providers, compare coverage details beyond just price, and make sure you understand the waiting periods and exclusions before enrolling. Your furry family member's health—and your financial peace of mind—are both worth protecting.
Pet insurance typically covers accidents (broken bones, cuts, poisoning), illnesses (cancer, infections, chronic conditions), emergency care, hospitalization, diagnostic tests, medications, and surgeries. Comprehensive plans may also cover hereditary conditions and alternative therapies. Routine care like vaccinations and dental cleanings usually requires a separate wellness add-on.
Average pet insurance costs are approximately $62/month for dogs and $32/month for cats for accident and illness coverage. Accident-only plans are cheaper at around $17/month for dogs and $10/month for cats. Your actual cost depends on your pet's age, breed, location, and the coverage level you choose.
Most pet insurance policies exclude pre-existing conditions—any illness or injury that existed before coverage began. However, some insurers cover "curable" pre-existing conditions after a waiting period (typically 6-18 months symptom-free). ASPCA, Embrace, Nationwide, and MetLife offer various provisions for curable conditions.
Pet insurance for older pets is more expensive and may exclude many pre-existing conditions. It can still be worth it if your senior pet is healthy and you're concerned about potential future health issues. However, you might consider alternatives like a dedicated pet savings account if your pet already has conditions that would be excluded.
To file a claim, pay your vet bill upfront, then submit the itemized invoice through your insurer's app, website, email, or mail. Include any required medical records. Processing times range from instant (some companies) to 30+ days. Reimbursement is calculated as: (Vet bill - Deductible) × Reimbursement percentage.
Accident-only plans cover unexpected injuries like broken bones, cuts, and poisoning—but not illnesses. Comprehensive (accident and illness) plans cover both accidents and medical conditions including cancer, infections, and chronic diseases. Comprehensive coverage costs more but provides significantly broader protection.
The best time to get pet insurance is when your pet is young and healthy. You'll get the lowest premiums, and no conditions will be excluded as pre-existing. Waiting until your pet develops health issues means those conditions won't be covered, and premiums will be higher due to age.
Footnotes
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Bankrate, "How Does Pet Insurance Work," "How Much Does Pet Insurance Cost," "Does Pet Insurance Cover Pre-existing Conditions" (2025-2026) ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7 ↩8
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Insurance Information Institute (III), "Facts + Statistics: Pet Ownership and Insurance" (2024) ↩ ↩2 ↩3 ↩4
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NAPHIA, North American Pet Health Insurance Association, "State of the Industry Report" (2025) ↩ ↩2 ↩3
-
Bankrate, "Is Pet Insurance Worth It," citing Experian and MetLife surveys (2024-2025) ↩ ↩2 ↩3 ↩4 ↩5
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ASPCA Pet Health Insurance, "Pet Insurance Basics and Coverage Details" (2025) ↩ ↩2
Disclaimer: The information provided on RichCub is for educational purposes only and should not be considered financial, legal, or investment advice. We recommend consulting with a qualified financial advisor before making any financial decisions. RichCub may receive compensation through affiliate links or advertising on this site.
RichCub Editorial Team
Contributor
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