Is Pet Insurance Worth It? Here’s what the data says
Important takeaways
- Pet costs are set to increase by 43% as of 2021, making pet care more expensive.
- Pet insurance has clear benefits: 3 out of 4 owners report very low pet costs, and 84% recommend it, according to survey data.
- Whether pet insurance is right for you depends on your budget, as you will pay monthly premiums and other out-of-pocket costs.
No pet owner wants to consider the worst situations that can happen when caring for a furry family member. But if your four-legged loved one gets bitten, breaks a bone or gets an infection, you better be prepared.
The cost of veterinary care increased by about 43% from January 2021 to January 2026, according to data from the Department of Labor. To help deal with those rising costs — and protect wallets and nerves from the stress of a surprise vet bill — many people are turning to pet insurance.
For many, it pays off. Owners with pet insurance can save money and enjoy peace of mind, according to a recent survey of 1,590 US dog and cat owners published by Money.com and Healthy Paws Pet Insurance.
“Pet insurance can really be worth it, especially when you think about times that people hope will never happen,” said Dr. Parva Bezrutczyk, a veterinarian who owns the Arizona Animal Wellness Center and is president of the American Animal Hospital Association. “When your pet is sick or injured, the last thing you want is to feel torn between what you need and what you can afford.”
Pet insurance provides protection as pet bills mount up
Pet health care can take a huge chunk out of your savings. About 29% of pet owners said they spend at least $100 each month on pet care, while 16% reported spending $100 or more on medications and supplements, according to the survey.
Health Paws Pet Insurance claims data shows that the average vet bill has steadily increased, reaching nearly $392 per claim by 2025 – a 32% increase from 2020.
Pet insurance can help keep costs under control and give owners peace of mind. 3 in 4 survey respondents with full-time pet insurance said this coverage has “significantly reduced” their out-of-pocket medical expenses for pets. The majority (87%) reported that it provided peace of mind when it came to their pets’ health, and another 84% would recommend pet insurance to other pet owners.
Should you get pet insurance?
Whether you get pet insurance depends on your financial situation and preferences.
“Some owners may prefer to set aside savings while others may value the predictability and protection that insurance provides,” says Bezrutczyk.
Pet insurance does not cover all pet care costs, as plans often do not cover routine visits and vaccinations. And, it’s a common additional expense: Premiums add up to about $62 a month for dogs and $32 for cats, on average, according to the North American Pet Health Insurance Association (NAPHIA). Many plans also require deductibles or copayments, which means you’ll have to pay at least some of the out-of-pocket costs before coverage kicks in.
But Bezrutczyk says when a pet is sick or injured, families often need to make decisions very quickly. Insurance can give them the freedom to say “yes” to advanced diagnostic surgery and other emergency treatments without financial stress.
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