As cute as pets are, they’re a financial commitment. Americans spent $147 billion on their pets in 2023 alone, according to a 2024 survey from the American Pet Products Association.
Some Americans are turning to pet insurance to help pay some of these expenses. A pet insurance policy can reimburse you for vet bills if your furry friend gets sick. But buying insurance adds another expense to your monthly budget. So how much is pet insurance, and can it save you money in the long run?
Key terms in this article:
1. Deductible: The amount of your vet bills you need to pay yourself before your insurer starts reimbursing you.
2. Pre-existing condition: A medical problem your pet has before your plan takes effect. Most insurers won’t cover pre-existing conditions.
3. Premium: The price you pay for your insurance policy.
How much is pet insurance?
For accident and illness coverage, the average cost of pet insurance in the U.S. is $676 per year for dogs, or about $56 per month, according to 2023 data from the North American Pet Health Insurance Association. The average cost of accident and illness coverage for cats is $383 per year, or about $32 a month.
For an accident-only policy, the average cost is $204 per year for dogs (about $17 per month) and $116 per year for cats (about $10 per month). An accident-only policy won’t cover illnesses such as cancer, allergies, or kidney disease.
The premium you pay may be higher or lower than these averages, depending on factors like where you live and how old your pet is.
How much is pet insurance for dogs?
To get a better idea of how much you might pay to insure a dog, we’ve gathered sample pet insurance rates based on different locations, breeds, ages, and insurers.
Pet insurance cost for dogs by city:
The cost of veterinary care varies by region. If you live in a place with higher vet costs, you can expect to pay more for pet insurance.
To see how this varies across the U.S., we compared quotes for a 2-year-old mixed-breed dog in cities of different sizes around the country. We found that you could pay as little as $23 a month in Jacksonville or as much as $63 a month for the same dog in New York City.
Here are sample monthly rates from two large pet insurers, Figo and Spot.
Rates were gathered for accident and illness coverage in a single ZIP code within each city. Rates are for a 2-year-old mixed-breed dog with a $250 deductible, $5,000 annual coverage limit, and 80% reimbursement rate.
Pet insurance cost for dogs by breed:
Some breeds are prone to certain medical conditions, which can increase the cost of coverage. For example, French bulldogs are at higher risk than most other breeds of developing medical issues such as breathing problems and skin fold inflammation.
To see how rates vary from one breed to another, we gathered sample monthly rates from Nationwide and Pets Best for some of the most popular dog breeds in the U.S.
Rates are for 2-year-old dogs living in Katy, Texas. Each plan offered accident and illness coverage with a $250 deductible, $5,000 of annual coverage, and an 80% reimbursement rate.
Pet insurance cost for dogs by age:
As dogs grow older, they’re more likely to develop medical conditions such as arthritis or heart disease. Because older pets tend to need more vet care, pet insurers typically charge them higher rates. Keep this in mind if you plan to adopt an older pet from a shelter — and remember that even if your puppy is cheap to insure now, you’ll likely pay more in the future.
Below you can see how different your monthly rates might be when insuring a 2-year-old dog vs. an 8-year-old one.
Rates are for mixed-breed dogs living in Katy, Texas. Each plan offered accident and illness coverage with a $250 deductible, $5,000 of annual coverage, and an 80% reimbursement rate.
Pet insurance cost for dogs by company:
Each pet insurer has its way of calculating rates. Below you can see a range of sample monthly costs from a dozen pet insurance companies for a 2-year-old mixed-breed dog living in Katy, Texas.
How much is pet insurance for cats?
Cats tend to be less expensive to insure than dogs, but their rates still vary based on their location, breed, and age. Below are sample rates to help you gauge how much your cat insurance policy might cost.
Pet insurance cost for cats by city:
We checked sample monthly rates from two major insurers for a 2-year-old cat in cities across the U.S. Rates ranged from $9 to $34 per month.
Rates were gathered for accident and illness coverage in a single ZIP code within each city. Rates are for a 2-year-old domestic shorthair (mixed-breed) cat with a $250 deductible, $5,000 annual coverage limit, and 80% reimbursement rate.
Pet insurance cost for cats by breed:
As with dogs, your cat’s breed can influence the price you pay for pet insurance. Below are sample monthly rates from two major insurers for several popular cat breeds.
Rates are for 2-year-old cats living in Katy, Texas. Each plan offered accident and illness coverage with a $250 deductible, $5,000 of annual coverage, and an 80% reimbursement rate.
Pet insurance cost for cats by age:
Because older cats tend to develop more health problems, you’ll generally pay more to insure your cat as they age. Check out sample monthly rates for cats at age 2 vs. age 8 from four major pet insurers.
Rates are for domestic shorthair (mixed-breed) cats living in Katy, Texas. Each plan offered accident and illness coverage with a $250 deductible, $5,000 of annual coverage, and an 80% reimbursement rate.
Pet insurance cost for cats by company:
To give you an idea of how pet insurance premiums can vary from one insurer to another, we’ve gathered sample monthly rates from a dozen companies for a 2-year-old domestic shorthair (mixed-breed) cat.
The cost of veterinary care:
The cost of vet care has gone up more than 7% since last year, according to the most recent consumer price index from the Bureau of Labor Statistics.
Beyond inflation, you may also find yourself paying more as veterinary medicine becomes increasingly sophisticated. Having more tests and treatments to choose from is good news for your furry pal’s health, but it can also lead to bigger bills.
Here’s how much dog and cat owners spend on various types of visits to the vet each year, according to the American Pet Products Association:
Of course, these numbers are just averages. You could pay for nothing but an annual wellness exam one year and then have to shell out $2,300 for ACL repair surgery the next. If you’d have trouble handling an unexpected emergency vet bill, buying pet insurance might be a good idea.
How pet insurance can reduce surprise bills:
While pet insurance can help cut your costs, it won’t reimburse you for every penny you spend at the vet. A policy will typically pay 70% to 90% of your costs after you pay a deductible, which can range from $0 to $1,000 or more. A deductible is the part of your vet bill you’re responsible for.
In most cases, you’ll need to pay the bill upfront and then file a claim with your insurer for reimbursement.
There are a few types of pet insurance plans:
– Accident and illness coverage helps pay for emergency care, surgeries, hospitalizations, diagnostic tests, and prescription medications if your pet gets sick or injured.
– Accident-only policies cover many of the same expenses, but only after an accidental injury.
– Wellness coverage can pay for routine care such as annual checkups, vaccinations, and preventive treatments. You can often add this coverage to an accident and illness plan for an extra cost.
– Not all pet insurers offer accident-only plans or wellness coverage.
When buying a pet insurance plan, it’s important to read the terms and conditions carefully. For instance, many companies have waiting periods before your coverage starts, and not all of them cover the same types of treatments.
How to lower your pet insurance cost:
To minimize your pet insurance bill, the following tactics can help.
Customize your plan:
You can often lower your price by changing the terms of your policy. For example, choosing a higher deductible will generally reduce your monthly premium. Just keep in mind that you’ll have to cover more of Fluffy’s vet bills before your insurer starts reimbursing you.
Similarly, you can try lowering your reimbursement percentage. For example, you could have your insurer pay 70% or 80% of your vet bills rather than 90%. Choosing a lower coverage limit can also reduce your premium.
Check for discounts:
Some pet insurance companies offer savings for insuring multiple pets, paying your bill annually rather than monthly, or serving in the military.
You might also get a discount if you buy pet insurance along with another policy from a company that sells multiple types of insurance. For example, existing Nationwide policyholders can save 5% on a new pet insurance policy.
Finally, check whether your employer offers pet insurance as a benefit. You may be eligible for a discounted rate.
Shop around:
There are more than 20 pet insurers in the U.S. competing for your business, so let them. Compare quotes from three insurers for similar amounts of coverage, and go with the option that works best for your budget.
It can be difficult to make fair comparisons between pet insurance quotes because not all companies offer the same coverage options and deductibles. For example, one insurer may have 90% reimbursement on all plans while another company offers a maximum of 70% for your pet. It’s up to you to decide which features might be worth paying a little more for.
Here are a few more things to check when comparing pet insurance costs:
– What’s not covered? Some plans won’t pay for prescription food, exam fees, or treating dental illnesses. A plan that looks more expensive might end up being a better value if the company includes more coverage.
– What are the waiting periods? A waiting period is the time between when you buy your policy and when your coverage starts. With some plans, you could have to wait six months to a year for certain types of coverage.
– How much will the plan pay? Check whether there are limits on how much your plan will pay per year or per incident.
Shopping around is most important when you first buy your policy because pet insurance companies typically won’t cover pre-existing conditions. That makes it less appealing to switch plans during your pet’s lifetime.
Say you’ve had pet insurance with Company A for three years. During that time your dog developed allergies, and Company A has paid for her medication. If you decide to switch to Company B, the allergies would be a pre-existing condition and your new plan wouldn’t cover any treatments for them.
Frequently asked questions:
Does pet insurance cost increase with age?
Yes, most insurers tend to increase the cost of your plan with each annual renewal. This is because vet care costs go up a little each year, and older pets are more likely to develop medical problems than younger ones.
If I buy pet insurance, do I have to switch vets?
No. You can generally take your pet to any licensed vet in the U.S.
How long are pet insurance waiting periods?
Some pet insurance plans (particularly wellness add-ons) don’t have any waiting period before your coverage starts, but you’ll typically have to wait at least a few days for accident coverage and a couple of weeks for illness coverage. Longer waiting periods of six months to a year may apply for certain conditions such as cruciate ligament injuries or hereditary conditions.
In conclusion, pet insurance can be a valuable investment to help manage the costs of veterinary care for your furry friend. By understanding the factors that influence the cost of pet insurance and exploring ways to lower your premiums, you can make an informed decision that benefits both your pet’s health and your financial well-being.
