Most pet owners plan for vaccines and checkups. Very few plan for the emergency that costs more than a month's rent.
That second bill is the one pet insurance exists for.
The cost picture
Prices for pet services, including veterinary care, rose 5.1% in the year to February 2026, while overall inflation ran at 2.4%. That is according to Bureau of Labor Statistics data cited by Bloomberg, in reporting published by Fortune on March 22.
The same reporting found that owners are responding by visiting the vet less often. Total visits fell 3% in the fourth quarter of 2025, the 16th straight quarter of decline, according to the veterinary data firm Vetsource. Emergency care, however, has not become cheaper. Bloomberg described one owner who paid $11,000 for his dog's spleen surgery.
Skipping routine visits does not remove the risk. It often moves it to the emergency room.
What coverage costs
The industry's latest annual count shows about 6.4 million insured pets in the United States at the end of 2024. The average accident-and-illness policy cost $749 a year for a dog and $386 a year for a cat, roughly $62 and $32 a month (North American Pet Health Insurance Association).
Your own quote will differ. Species, breed, age and location all move the price.
What the policy actually says
Pet insurance does not work like your own health plan. Read these five terms before you buy.
- Reimbursement. In most cases you pay the veterinarian in full and the insurer repays you afterward, according to the National Association of Insurance Commissioners. You need the cash, or the credit, up front ( NAIC ).
- Deductible. The amount you pay before the policy pays anything. Choosing a higher deductible lowers the premium.
- Reimbursement rate and limits. The policy pays a set percentage of covered costs, usually up to an annual or per-condition maximum. A plan that pays 80% with a $5,000 annual cap behaves very differently from one that pays 90% with no cap.
- Pre-existing conditions. Conditions your pet showed signs of before coverage began are generally excluded. Under the NAIC model law, some curable conditions may become eligible later, while chronic or terminal ones may stay excluded ( NAIC regulator's guide ).
- Waiting periods. Coverage does not start the day you pay. In states that have adopted the NAIC model law, illness waiting periods are capped at 30 days and accident waiting periods are not allowed. Other states may differ.
Is it worth it?
Run the comparison honestly. At the average dog premium, five years of coverage costs about $3,750. A healthy dog may never generate claims that large. A single surgery can exceed it in one visit.
The decision comes down to one question: could you pay a $5,000 vet bill tomorrow without borrowing?
- If yes, a dedicated savings account for your pet may serve you as well as a policy.
- If no, insurance turns an unpredictable, large bill into a predictable monthly one. That is the core purpose of insurance.
Buy early if you are going to buy. Every condition your pet develops before the policy starts may become a permanent exclusion.
Coverage check
The bottom line: pet insurance is not a discount on veterinary care. It is protection against the bill you cannot absorb. Buy it for that reason, buy it before problems appear, and read the exclusions before you sign.
Sources
- Fortune / Bloomberg, Pricier vet care: fewer visits but still many $11,000 surgeries , March 22, 2026 (citing BLS and Vetsource data)
- North American Pet Health Insurance Association, State of the Industry 2025 , April 22, 2025 (industry-funded; figures for 2024)
- National Association of Insurance Commissioners, Pet Insurance: It Could Save Your Pet's Life, Could Save You Money
- National Association of Insurance Commissioners, A Regulator's Guide to Pet Insurance
Insurance rules and prices vary by state and insurer. This article is for general information, not individual advice; consult a licensed insurance professional for your situation.