Pet Insurance: Key Statistics and Insights for 2025
Did you know that the first insured pet in the United States was Lassie, the famed TV collie, back in 1982? Today, pet insurance has become a significant market, reflecting our growing concern for our animal companions’ wellbeing. This article will provide you with the most up-to-date statistics and information about pet insurance, including costs, coverage options, and the trends shaping this important industry.
Pet Insurance: The Basics
Currently, dogs make up the majority of insured pets, with approximately 80% of insured pets being dogs compared to 20% cats. The average annual cost of owning a dog is around $1,400, where cat ownership costs about $1,150. However, these figures don’t account for unexpected veterinary bills, which can arise from issues such as ingested foreign objects or cancer. Remarkably, one in three pets requires emergency veterinary care each year, and a pet receives emergency care every 2.5 seconds in the U.S. These statistics underscore the importance of pet insurance in managing the often substantial and unexpected costs of pet healthcare.
One in three pets need emergency veterinary treatment every year and a pet receives emergency care every 2.5 seconds in the U.S.
Pet Insurance Coverage and Costs
The size of the pet insurance market was valued at $8.6 billion in 2022 and is projected to reach $16 billion by 2032, demonstrating its significant growth. Within this expanding market, several different plans are available, and the cost varies significantly.
There are generally two main types of pet insurance plans:
- Accident and illness plans, which cover a wide range of problems, including broken bones, ligament tears, cancer, and common illnesses.
- Accident-only plans which only cover accident-related issues.
You can often add wellness plans, which help manage the costs of routine vet visits, vaccinations, and other preventative care.
The average monthly premium for accident and illness pet insurance is about $53 for dogs and $32 for cats. The average monthly cost for a pet insurance plan with $5,000 annual coverage, a $250 deductible, and 80% reimbursement is $44 for dogs and $30 for cats. For an unlimited plan with a $500 deductible and 90% reimbursement, the average cost is $56 for dogs and $47 for cats.
Breed and State Variations
Pet insurance costs can also vary based on your pet’s breed and where you reside. Large dog breeds often have higher insurance costs than smaller breeds, due to potential medical expenses. For example, the American Bandogge Mastiff tends to be one of the most expensive breeds to insure, where insurance for a French bulldog may cost significantly more each month compared with a Chihuahua.
Where you live also impacts the cost of pet insurance, influenced by local veterinary care costs. Pet insurance can be cheaper in states like Texas ($21/month for a dog with a particular plan) compared to places like Connecticut ($37/month for the same plan).
Common Pet Health Issues
Understanding common health issues can help pet owners and insurance companies manage risks and plan for vet visits. For instance, skin conditions are the top medical concern for dogs, while urinary tract infections are the leading issue for cats. In 2022, the ASPCA reported recreational drugs made the top 10 toxins list for animals for the first time, highlighting the diverse health threats pets may face.
The following are the top 10 Pet Toxins:
- Over the counter medications
- Food
- Human prescription medications
- Chocolate
- Plants
- Household toxins
- Veterinary products
- Rodenticides
- Insecticides
- Recreational drugs
Pet Insurance Claims
Last year, the top paid medical-related pet insurance claim for dogs reached $60,882 and $40,057 for cats highlighting the financial implications of serious pet health concerns. These figures are a testament to the value of comprehensive pet insurance and encourage owners to look for plans with high annual coverage limits.
The Decision to Insure
Considering the health-related worries of pet owners, with ingestion of foreign objects, being hit by a car, or other accidents, pet insurance becomes a valuable consideration. About two-thirds of U.S. households have a pet as of 2023, a 56% increase since 1986. However, only about 4% of dogs and 1% of cats are insured, which is a low rate when considering the potential for large and unexpected veterinary expenses.
When deciding if pet insurance is the correct solution for your situation, it’s important to consider the impact a major veterinary bill could have on your finances. A significant number of pet owners have already delayed or avoided necessary care due to costs therefore weighing your budget against the potential costs of not having insurance is key.
This overview provides key insights into pet insurance, including the trends and statistics. By understanding the coverage options, common health issues, and cost considerations, pet owners can make informed decisions to safeguard their pet’s health and their finances.
