Did You Know?
5,534 pet owners requested and received a free no-obligation quote from one of the above companies in the last 30 days.
Why Is Pet Insurance Worth It?
Owning a pet can offer a life-changing experience, but the cost of caring for a four-legged family member is rising. According to a recent study, veterinary expenses make up the largest portion of a pet’s lifetime care costs. While many routine veterinary expenses are predictable, you can’t always plan for emergencies, chronic diseases, acute illnesses or accidents. If you want peace of mind surrounding your pet and their care, pet insurance may be worth it for you.
Having health insurance ensures you can provide the necessary treatment without worrying about the cost. It gives you peace of mind and allows you to focus on your pet’s well-being rather than the financial burden
Our team surveyed 1,000 pet insurance policyholders nationwide and found that 39% of respondents don’t have savings set aside for their pets. If this also describes your financial situation, you could find yourself unable to pay an unexpected veterinary bill, which could impact the level of care your pet receives. Pet insurance aims to alleviate this burden by offsetting costs and ensuring pets have access to the veterinary care they need.
Did You Know?
According to our 2024 survey of 1,000 pet owners, 84% of respondents with pet insurance said the policy was worth it.
In contrast to human health insurance, which is designed as an all-inclusive solution, pet health insurance provides financial protection when something goes wrong — similar to auto or home insurance. If your pet needs life-saving surgery, a specialist visit, life-long medications or chemotherapy, for example, you may find having an insurance policy is worth the price.
Pros and Cons of Pet Insurance
Pet insurance can provide peace of mind in the event of an accident or illness among other benefits, but also comes with limitations and varying monthly costs. Discover the pros and cons of buying pet insurance to help you understand whether or not it makes sense for you and your furry friend.
Pros
Can help cover unexpected and ongoing veterinary bills
Provides peace of mind in the event of a pet emergency
Helps spread out costs with predictable monthly premiums
Reimbursem*nt limits reset each year your pet’s policy renews
Allows pet owners to choose veterinary care based on need instead of price
Cons
Requires a monthly premium payment
Most providers operate on a reimbursem*nt model, meaning owners will have to pay pet bills upfront
Customers are subject to coverage limitations and rules, which may vary by insurer
May end up paying more in insurance premiums than if you’d paid for veterinary services out of pocket
When To Skip Pet Insurance
In most cases, you can customize a pet insurance plan to provide the coverage level that fits your budget. However, purchasing a policy may not be worth it for every pet or every situation. Senior pets and those with a complex medical history may not be good candidates as pet insurance will not cover pre-existing conditions, and the cost of insuring pets increases with age. Additionally, pet owners with sufficient savings or monthly income to cover veterinary bills as needed or those looking only for wellness coverage may find a comprehensive policy unnecessary.
If you answer “yes” to any of the following questions, you may want to skip a pet insurance policy or choose one with low monthly premiums in exchange for minimal coverage:
- Is your pet 10 years or older?
- Does your pet have a history of many different diagnosed or undiagnosed health problems or symptoms?
- Do you have sufficient income or savings to cover a $5,000 to $10,000 emergency or specialty veterinary bill? What about ongoing monthly medication costs of $100 to $500?
What Is Covered by Pet Insurance?
Pet insurance coverage depends on the plan type, provider and annual limits selected. Policyholders can choose from an accident-only plan, which offers more limited coverage, or a full-coverage accident and illness plan. Standard pet policies are designed to cover unexpected expenses, however, some insurance providers offer add-ons to offset routine wellness costs.
What Do Most Accident and Illness Plans Cover?
As the name suggests, accident and illness plans cover expenses related to accidents and illnesses. Each plan is different, but most pet insurance policies cover the following basics:
- Diagnostic tests
- Imaging tests
- Medically-necessary procedures and surgeries
- Specialty care
- Emergency care
- Prescription medications
- Acute illnesses
- Chronic diseases
- Injuries
What Do More Extensive Accident and Illness Plans Cover?
Some accident and illness plans extend coverage to include more extensive or unique services. For example, Fetch offers a standard accident and illness plan that includes coverage for alternative healthcare and holistic treatments. Other examples of such coverage include:
- Exam fees
- Rehabilitation
- Dental accidents or illnesses
- Microchipping
- Behavioral treatments
- Congenital and hereditary disorders
- Alternative and holistic therapies
MarketWatch Guides Tip
We recommend choosing a company with dental coverage if you think your pet could experience dental health issues. Dental-related accidents and illnesses, such as root canals, can cost upwards of $3,000.
What Do Wellness Plans Cover?
Wellness plans provide partial reimbursem*nts for preventive medical care services based on a set fee or benefits schedule. Common coverages include:
- Wellness exams
- Vaccinations
- Deworming
- Parasite screening tests
- Parasite preventives
- Prophylactic dental cleanings
- Blood and urine tests
What Common Add-Ons Do Insurers Offer?
Some companies offer a standard accident and illness policy, while others provide cheaper coverage alongside a range of optional add-ons. Providers such as Lemonade, for example, offer a cheaper base plan that you can customize with additional coverages. Common add-ons across pet insurance companies include:
- Wellness and preventive care
- Rehabilitation
- Dental illness
- End-of-life care
- Breeding and pregnancy care
What Is Often Not Covered by Pet Insurance?
Each pet insurance policy has a list of specified limitations and exclusions that vary depending on the provider, but common exclusions across the industry policies include:
- Pre-existing conditions
- Conditions that occur during a waiting period
- Cosmetic and elective procedures
- Experimental procedures
- Vaccine-preventable diseases
- Grooming, training and other non-veterinary expenses
- Injuries caused by working, racing, fighting or intentional harm
- Supplements
- Prescription food
How Much Can You Expect To Pay for Pet Insurance?
The MarketWatch Guides team collected thousands of sample pet insurance quotes to determine how much a typical policy costs. The national average cost of pet insurance is $46 per month, or $552 annually. However, the cost will vary depending on where you live and your pet’s age and breed.
Dogs cost more to insure than cats, based on our quotes, and older pets cost more to insure than younger ones. Additionally, some providers charge more to insure a purebred pet over a mixed breed. Finally, pet insurance costs are higher in areas with a high cost of living, such as a large city or metro area.
Policy parameters also influence monthly costs. When you sign up for a plan, you can typically choose from a range of options in each of the following categories to customize the monthly premium.
- A deductible is the amount you pay for covered expenses before the plan kicks in. Choosing a higher deductible will typically lower your monthly premium.
- The reimbursem*nt rate is the percentage of each covered bill the plan pays, typically ranging from 50% to 90%. Choosing a lower reimbursem*nt rate will typically lower your monthly premium.
- An annual limit is the maximum amount a plan will reimburse each term, typically over a year. Policies with unlimited coverage usually result in significantly higher premiums than those with a $5,000 to $10,000 annual limit.
Check out the map below to see how location impacts average monthly pet insurance premiums:
When Should You Get Pet Insurance?
The timing of when you purchase a pet insurance plan can influence whether it offers a return on your investment. Monthly costs increase significantly as pets approach senior status since they become more likely to incur expensive vet bills with age. Some pet owners may wait to insure their pet until it is older to save on premiums over time. However, any health conditions your pet develops before the plan begins will get excluded from future coverage, reducing the policy’s overall value.
“In my professional opinion, yes it is worth it. When someone has insurance, veterinarians can deliver necessary care without compromises,” says Katy Nelson, CVM and Senior Veterinarian at Chewy.
The best time to purchase a pet insurance plan is before significant medical expenses arise or when your pet is young. The sooner you purchase a plan after acquiring your pet, the fewer conditions an insurer may consider as pre-existing. For example, pet insurance can help cover diabetes if your pet gets diagnosed after enrolling in insurance, but not the other way around. This could save you hundreds to thousands in treatment costs over its lifetime.
In addition to helping cover veterinary costs for your furry friend’s future, premiums for young and middle-aged pets are also typically quite affordable. For example, our team found a 1-year-old medium, mixed-breed dog costs $39 to insure versus $62 for an 8-year-old.
MarketWatch Guides Tip
In the survey where 85% of 1,000 pet owners said purchasing pet insurance was worth it, 79% of respondents reported buying coverage before their pet turned 2 years old.
The graphs below show how monthly pet insurance costs increase over a pet’s lifetime:
Expected Costs of Common Vet Treatments
The average annual cost of owning a pet ranges from $1,270 to $2,303, and lifetime costs can exceed $55,000. Pet ownership is generally not cheap, and increasing veterinary care costs and overall pet spending can contribute to expenses.
According to data from the American Veterinary Medical Association, the mean annual expenditures on veterinary care for dogs and cats between 2020 and 2022 increased significantly. Dog-related spending increased from $224 to $362, while cat-related spending increased from $189 to $321. That’s more than a 60% increase, which means costs are rising faster than inflation.
Here are the average costs for common pet procedures and the amount you could save with pet insurance based on a plan with a $250 deductible and an 80% reimbursem*nt rate.
| Condition | Cost | Out-of-Pocket Cost | Savings |
|---|---|---|---|
| Cancer | $3,200–$8,000 | $1,800 | $6,200 |
| Diabetes | $1,600–$2,900 | $780 | $2,120 |
| Eye conditions | $200–$2,000 | $600 | $1,400 |
| GI conditions (inflammation, infections, chronic disease and foreign object emergency surgery) | $1,600–$5,000 | $1,200 | $3,800 |
| Broken bone | $2,200–$2,400 | $680 | $1,720 |
| Arthritis | $500–$750 | $350 | $400 |
| Dental disease | $500–$800 | $360 | $440 |
| Urinary tract infection | $400–$1,050 | $410 | $640 |
| Feline kidney disease | $1,300 | $460 | $840 |
| Heart murmur or disease | $1,100–$2,500 | $700 | $1,800 |
| Skin disease, allergies or allergy testing | $200–$2,500 | $700 | $1,800 |
| Ear infections | $850 | $370 | $480 |
| Cruciate ligament tear (i.e., surgery) | $2,000–$5,000 | $600 | $1,400 |
| Growths or tumors | $300–$1,600 | $520 | $1,080 |
| Seizures | $200–$500 | $300 | $200 |
| X-Ray | $100–380 | $276 | $104 |
| Overnight Hospitalization | $600–3,500 | $900 | $2,600 |
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According to a survey from the American Pet Products Association (APPA), pet owners spent roughly $38.3 billion on veterinary care alone in 2023. Determining how much you could potentially spend on medical bills without insurance is an important step in deciding if pet insurance is worth it.
“I always advise my clients that using insurance and quality preventative care is…more cost-effective than paying a $5,000 to $10,000 medical bill out-of-pocket. According to a Chewy survey, almost half (46%) of pet parents have spent more on their pet’s medical needs than their own.”
Katy Nelson, DVM, Senior Veterinarian at Chewy
Average Routine Care Costs
When your pet is young, they will need to go to the vet more frequently to receive their first round of vaccinations, spay or neuter surgery, parasite prevention and microchipping. After that, your pet will likely only need to see the vet once or twice per year for checkups and vaccine boosters. Still, these routine care visits can add up throughout your pet’s life.
We compiled data from multiple pet care sources (including the American Kennel Club, ASPCA and Pet Care Rx) and determined the following cost ranges for the most common routine care vet visits.
- Annual exam: $45–$55
- Blood test (for allergies): $200–$300
- Dental cleaning: $70–$400
- Fecal exam: $45–$55
- Microchipping: $25–$65
- Spay or neuter surgery: $55–$300
- Vaccinations: $95–$120 (for the first round of vaccines); $18-$25 (for boosters)
- X-rays: $103 to $383
6.25 Million Pet Owners Have Pet Insurance
The number of insured pets has increased 17% to 23% year over year since 2019, equaling a total of 6.25 million pets insured, according to the North American Pet Health Insurance Association (NAPHIA) 2024 State of the Industry report. Likely reasons for this increase include a rise in veterinary visit costs, economic changes and a growing insurance marketplace.
Not Interested in Pet Insurance? Alternatives To Pay for Vet Care
Pet insurance is one of several options that can help you pay for your pet’s veterinary care. If you are not interested in pet insurance, our team recommends the following alternatives to pay for unexpected vet bills. You can also use these options to cover expenses upfront while you wait for pet insurance reimbursem*nts.
Pet emergency fund
Set aside money each month to pay for ongoing pet expenses or a major emergency. To properly maintain an emergency fund, you must replenish the savings each time you use it.
Pet credit card
A dedicated pet credit card, such as a deferred interest option from CareCredit, allows you to spread out care costs. However, you would have to qualify for the card and be willing to potentially accrue debt with interest. Payments made using other standard credit cards may be subject to interest.
Payment plans
Some veterinary hospitals offer in-house payment plans or third-party options, such as ScratchPay, which operate similarly to a loan. This can help spread out the cost of care over a set period but also means you will owe an outstanding balance.
Is Pet Insurance Worth It?
For many people, the financial protection that pet insurance offers is worth the monthly premium payments. Ultimately, the decision of whether to purchase a pet insurance plan and if it is worth it depends on your circ*mstances and preferences. As with most insurance products, you may not get back every dollar you pay, but you may find value in the peace of mind you’ll receive in return.
“I pay $40 a month and over the two years I've had the policy, the company has reimbursed me for around $1,400 worth of expenses — a return on investment that works for me!”
“These days policies can be pretty affordable, but whether or not they’re worthwhile is always going to depend on the owner and their personal experience. Some pet owners have insurance and never need it, while others have it and use it often.”
“I pay $40 a month and over the two years I've had the policy, the company has reimbursed me for around $1,400 worth of expenses — a return on investment that works for me!”
Frequently Asked Questions About Pet Insurance
Pet insurance coverage is subject to exclusions and limitations, which vary from plan to plan. Most plans cover expenses related to accidents and illnesses but exclude coverage for pre-existing conditions, elective procedures and routine wellness care. Check your policy documents for a full list of coverage and exclusions.
The main disadvantages of pet insurance include the monthly cost, which rises as pets age, and coverage rules and regulations, which can limit coverage in certain situations. Policyholders should read the plan’s fine print, which outlines procedures, limitations and exclusions, to learn more.
Pet insurance is designed to help policyholders cover veterinary bills related to pet accidents and illnesses. When your pet gets sick, a pet insurance policy can save you hundreds or thousands of dollars. Standard pet insurance does not help with routine annual expenses, such as vaccines or wellness screening tests, unless you purchase an add-on policy.
Veterinary care often involves diagnostic testing that may require specialized, expensive equipment, such as a digital X-ray unit, automated blood analyzers, or a CT or MRI machine. Many medications and treatments, such as chemotherapy and laser therapy, can also be pricey. If your pet requires hospitalization with intensive care, prices can increase quickly due to the staffing and supplies used. In addition, the expertise required to care for pets involves extensive schooling. According to the American Veterinary Medical Association, the average student debt of a veterinarian graduating in 2022 was almost $150,000.
If you have feedback or questions about this article, please email the MarketWatch Guides team at [email protected].
