Is Pet Insurance Worth It?

Assessing the value of pet insurance for your furry companion

Pet care costs are on the rise, according to a new report from Rover, a pet care marketplace. The report suggests that dog care costs could rise 7% in 2025, while cat care costs could be 10% higher. About 52% of pet owners are worried that tariffs could further increase their costs.

One way some pet parents offset their expenses and reduce the financial impact of an emergency is through pet insurance. Pet insurance can be worth it if you’re worried about a costly illness or injury — or if your furry family member has chronic conditions. Understanding how pet insurance works and the associated costs can help you decide if buying a policy is the right move.

How much does pet insurance cost?

The average cost of our best pet insurance companies is $47.87 per month for a dog with annual coverage of $5,000, a $500 deductible and an 80% reimbursement rate. Cat rates are generally lower than premiums for dogs.

However, pet insurance costs vary widely, based on a variety of factors:

Age, gender, breed and health of your pet
Where you live (your ZIP code)
Types and tiers of coverage
Annual deductible
Reimbursement rate
Optional add-ons

Senior pets might have higher rates. For example, the average rate for an 8-year-old, mixed breed dog with $5,000 in annual coverage with a $500 deductible and 80% reimbursement among our top nine pet insurers is $68 per month. Note, however, that some pet insurance companies only offer accident-only plans for senior pets. Accident-only plans can be much cheaper than illness plans that cover more conditions, but they have fewer covered benefits.

How much does vet care cost without insurance?

Choosing to self-insure with an emergency fund or by creating a sinking fund for your pet’s care costs can save you money on insurance premiums. However, it’s important to understand how much vet care can cost without insurance.

The Rover study suggests that you’re likely to spend $34,550 in lifetime care for a dog that reaches age 10. The cost of caring for a cat to age 16 is expected to be $32,170.

In just the first year of life, the American Society for the Prevention of Cruelty to Animals (ASPCA) estimates that you can expect to spend more than $3,000 to care for a puppy and almost $2,000 to care for a kitten. This includes well visits, keeping up with vaccination schedules, microchipping, spaying/neutering and other treatments, like heartworm medication.

Some of these routine items are included in a base pet insurance plan, but a wellness add-on might be required to cover these vet bills.

For example, the ASPCA suggests that preventive medication for heartworm, fleas and ticks costs, on average, $185 for a dog and $140 for a cat. This is an ongoing cost for many pets. Keeping up with vaccinations and covering annual wellness visits might cost $225 for a dog and $160 for a cat each year. You often need a wellness plan for these expenses.

Unexpected vet care can be much more expensive without insurance. According to EmergencyVetsUSA.com, these are some common costs related to accidents and serious illnesses:

Exam/consultation: $100 to $150
3- to 5-day hospitalization: $1,500 to $3,500
Emergency surgery: $1,500 to $5,000
Wound treatment and repair: $800 to $2,500
Note that pet care costs also vary by location and are influenced by the type of pet, breed, size, age and health. Average prices might not reflect your experience, and different factors impact your final cost.
If your pet has emergency surgery and spends four days in the hospital, plus has therapy and checkups after the surgery, it’s not unreasonable to suggest that you could end up with a bill totaling $10,000 or more.
The vet care costs for pets with chronic conditions like diabetes or those that need prescription food can add up quickly. The right pet insurance plan can help you plan your budget to prepare for these expenses and share them with a pet insurance company.

Pros and cons of pet insurance

As you consider pet insurance, compare the advantages and disadvantages, as well as how it might fit into your budget.

Pros

Helps cover major pet expenses and emergencies: Once you meet your deductible, pet insurance covers the cost of emergencies and serious illnesses, up to your reimbursement amount. For example, if your cat is ill and ends up being hospitalized and given special treatment, the total bill might come to $4,000. However, if you have a $500 deductible and 80% reimbursement rate, you would pay $1,200 ($500 deductible plus $700, which is 20% of the remaining $3,500). The pet insurer would cover the remaining $2,800.
Some plans include therapies and other costs: Depending on the plan, you might receive coverage for behavioral therapies. Some of the best pet insurance companies cover prescription food and supplements. Review your pet’s one-time and ongoing needs to choose a plan that offers needed benefits.
Accident-only plans can provide peace of mind: If you’re less concerned about illness and chronic conditions, an accident-only plan can be more affordable and provide peace of mind. You can potentially handle expensive treatment related to accidents and injuries without causing budget problems.

Cons

Not everything is covered with pet insurance: Pre-existing conditions aren’t covered by pet insurance. If your pet was sick before you got coverage, that specific illness might not be covered until you pass a special waiting period — or not at all. Some pet insurance plans exclude common breed-related conditions, even if your pet hasn’t exhibited symptoms of those illnesses.
Most routine wellness costs aren’t included in base pet insurance plans: While some base plans include behavioral therapies and might include emergency vet exams and microchipping, this isn’t universal. Few base plans include annual wellness visits, dental cleanings and vaccinations. Instead, you might need to buy an additional wellness plan if you want these items covered.
You might spend more in premiums, deductibles and co-pays than on care: Pet insurance plans don’t usually start covering costs until you reach your annual deductible. Then, there’s a reimbursement rate. If you have a lower reimbursement rate, such as 60% or 70%, you might still end up paying a significant amount after you reach your deductible. Additionally, if there’s an annual coverage limit, you’re responsible for all the costs beyond that amount. An expensive emergency could put you beyond your coverage limit.

Do veterinarians recommend insurance coverage?

Some veterinarians recommend pet insurance to help cover expenses related to the care of your animal companion. In fact, the American Veterinary Medical Association endorses the concept of pet insurance as long as it’s transparent, encourages a relationship between a pet patient and licensed vet and meets other best practices.

When is pet insurance most affordable?

Pet insurance for furry family members that are past the puppy/kitten stage and before the senior stage is often most affordable. In this age range, pets generally don’t need as many one-time wellness procedures like spaying and neutering or microchipping, and they are past their initial vaccination schedule. However, it’s before the start of some of the chronic conditions and illnesses that can come with age.

Insurance considerations for younger pets

Younger pets might be more likely to injure themselves through inexperience. As a result, you might pay a higher rate, depending on the insurer. Your pet might also have more illnesses or you might bring your pet into the vet more often as you learn to care for your young animal companion.

Additionally, they often need more vaccinations and initial treatments. You might be able to purchase a wellness plan to help these costs fit into your budget, but this contributes to your overall expenses.

Insurance considerations for older pets

As pets age, more conditions might become apparent. Some breed-specific or hereditary conditions, like hip dysplasia, manifest as a pet ages. These conditions might require treatment. Some insurers cover these conditions as long as they haven’t been treated previously or the pet is symptom-free for a period of time. Other pet insurance companies exclude these conditions. Carefully review your pet insurance policy for breed-specific exclusions.

Older pets might also be prone to more illnesses and injuries. Your insurance rate might increase dramatically once your furry family member reaches a certain age. Each insurer has a different point at which a dog or cat is considered “senior,” so make sure you understand the rates associated with this designation.

Finally, some pet insurance companies offer accident-only plans to cover senior pets, removing them from more comprehensive illness plans when they reach a designated age.

Pet insurance is potentially worth it if you’re concerned about high costs related to chronic conditions and special needs.

For example, if your pet needs prescription food or ongoing medications, or you’re worried about an accident resulting in an expensive surgery and recovery, a pet insurance plan might make sense. Having a predictable premium and knowing that your costs will be at least partially covered by insurance can provide peace of mind and reduce your financial strain.

On the other hand, if your pet has low to moderate healthcare needs, ongoing pet insurance might not be worth it. You might pay more in premiums, deductibles and co-pays than you receive in benefits over the years. If you have the ability to cover high-cost and unexpected care costs with an emergency fund, or if you can create a sinking fund for pet costs, you might decide pet insurance isn’t worth the cost.

A compromise might be to cover routine care and illnesses out of pocket while paying for a much cheaper accident-only plan for bigger accidents and injuries. Review your budget and your pet’s needs to determine the best course of action for your situation.