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Protecting Your Pets With Pet Insurance: The Real Cost of Owning a Pet

By

Bryan Huynh

- Updated December 2, 2024

Key Takeaways

  • Regular vet checkups and an active lifestyle are crucial for pet well-being
  • Pet insurance can help manage rising veterinary costs.
  • The global pet insurance market is projected to reach $11.25 billion by 2026
  • The number of insured pets is rising, even as overall pet ownership slightly decreases
Protecting Your Pets With Pet Insurance: The Real Cost of Owning a Pet

When you bring home your new pet, it’s important to ensure you do everything you can to make sure they live an active and healthy life, which includes taking them to regular vet checkups. And with the rising prices of pet care, pet insurance can help you cover some of the costs.

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Although it wasn’t as common in the past, pet insurance is rising in popularity, with the market expected to reach $11.25 billion by 2026.

If you’re considering investing in pet insurance for your pet, you may be wondering if it’s even worth the cost. And before you take the first step into insuring your pet, you may want to know the more essential details: how much the premiums cost for your type of pet, along with costs based on the breed, age, and state.

Below we look at recent data and break down the specifics of getting your pets insured.

Pet Insurance Trivia

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Type of Pet Number of Owners Surgical Vet Expense Food Total Expense
Dog 65.1 million 458 287 745
Cat 46.5 million 201 254 455
Freshwater Fish 11.1 million N/A N/A N/A
Small Animal 6.7 million N/A N/A N/A
Bird 6.1 million N/A N/A N/A
Reptile 6.0 million N/A N/A N/A
Saltwater Fish 2.2 million N/A N/A N/A
Horse 2.2 million N/A N/A N/A

Types of Pets

According to 2023-2024 APPA National Pet Owners Survey, around 66% of US (or 86.9 million) households own a pet, with dogs being the most popular pets but cats as a close second.

Type of Pet Number of Owners
Dog 65.1 million
Cat 46.5 million
Freshwater Fish 11.1 million
Small Animal 6.7 million
Bird 6.1 million
Reptile 6.0 million
Saltwater Fish 2.2 million
Horse 2.2 million

Cats Vs. Dogs -- The Real Cost Difference

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Raising a pet is no easy task, and the costs of veterinary care rank highest on their needs.

Expense Dog Cat
Surgical vet 458 201
Food 287 254
Routine visit 242 178
Kennel boarding 228 78
Food treats 81 72
Vitamins 81 47
Toys 56 41
Groomer/grooming aids 47 31
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As you can see, surgical costs ranked highest in annual pet care expenses. Pet insurance can help cover some or all of the costs of surgical procedures, along with preventative care and treatment. However, it’s important to make sure you insure your pets when they are young, since some pet insurance services won’t provide coverage for older pets or those with pre-existing conditions.

Insuring Your Pets

Currently, the North American pet insurance marketplace comprises 25 companies. At the end of 2021, nearly 4.41 million pets were insured in North America.

Although the number of pet owners has decreased slightly since the previous year, the number of pets being insured are increasing.

Below, we look at two types of plans offered by most pet insurance companies:

  • Accident and Illness Plans: Accident benefits plus illnesses such as cancer, infections, digestive problems, etc.
  • Accident Only: Foreign body ingestion, lacerations, motor vehicle accident, ligament tears, poisoning, etc.
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Pet insurance costs are made up of several factors:

  • The premium, which is the monthly or annual cost of the pet insurance policy
  • The deductible, which is the amount you need to pay before the policy begins covering procedures and treatment
  • Copay/reimbursement percentage, which is the percentage paid for covered expenses after the deductible

What Pet Insurance Covers

The most commonly insured pets are cats and dogs, although birds, reptiles, and small mammals may also be covered.

  • Pet insurance can cover a variety of needs:
  • Diagnostic exam fees
  • Prescription medications
  • Prescription foods and supplements
  • Congenital conditions
  • Hereditary conditions
  • Dental issues
  • Boarding fees during emergencies
  • Loss and found pet search expenses
  • Working-pet coverage (therapy dogs, etc)
  • Recovery and complementary care (physical therapy, etc)

Average Annual Premium Per Cat & Dog

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Below we take a look at the average annual premium for cats and dogs for Accident & Illness plans and Accident Only plans.

Accident & Illness (US)

2018 2019 2020 2021 2022
Cats $359.56 $365.89 $366.69 $369.57 $387.01
Dogs $560.06 $594.64 $612.55 $625.15 $640.04

Accident Only

2018 2019 2020 2021 2022
Cats $115.88 $117.21 $121.38 $121.03 $122.19
Dogs $158.40 $169.32 $184.46 $192.39 $200.58

It’s no surprise that veterinary care costs are increasing – after all, over $186.8 billion was spent on pets in 2022, with $35.9 billion being spent on veterinary care and product sales.

Top Claims Paid for Cats and Dogs

Top Claims Paid - Cats (2022) North America

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Breed Sex Age Claim Paid Amount Location Condition
Sphynx M 2 $40,057 NJ Urethral obstruction/Cystotomy (Not listed); Renal abscess and PU surgery/pyothorax sepsis tail (tip) amputation, HCM pericarditis, anemia
Domestic Short Hair M 6 $29,503 MOUNTAIN VIEW, CA Acquired Esophageal Dysfunction
Domestic Medium Hair M 5 $21,941 Yonkers, NY Foreign Body Ingestion
Domestic Short Hair F 12 $20,154 Davis, CA Renal failure
Tabby F 13 $18,326 LANGLEY Urinary
Domestic Long Hair M 9 $17,935 WA Endocrinology: Hormonal Disorders
Domestic Short Hair M 8 $17,221 VA Tumors/Growths/Cancer
Abyssinian M 3 $16,364 New York, NY Unspecified
Mixed Cat F 10 $15,431 Stamford, CT Kidney Disease
Domestic Short Hair F 4 $14,851 Nephrolithiasis(+ Ureterolithiasis)

Top Claims Paid - Dogs (2022) North America

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Breed Sex Age Claim Paid Amount Location Condition
Flat-Coated Retriever M 2 $60,882 NH Pneumonia
English Bulldog F 3 $60,215 Houston, TX Pneumonia
Akita M 10 $52,659 Levittown, PA Heart Issues
Mixed Breed M 4 $51,922 New Haven, CT Wound
Mixed breed (Unknown size) F 10 $51,896 CA Septic Abdomen, ruptured Gallbladder with Cholesystectomy, Polyuria with UTI
Golden Retriever M 6 $48,533 Gaithersburg, MD Neurologic
American Pitbull Terrier F 2 $39,736 ME Myositis, Discospondylitis
Miniature Australian Shepherd M 5 $39,006 BC Abdominal tear from dog attack
Mixed Breed (55 - 90 lbs) M 6 $37,686 Culver City, CA Anemia - Immune Mediated
Great Dane M 5 $37,393 DAVIS, CA Glomerulonephritis

*Data from Naphia's Industry Data report

Reasons Cats & Dogs Visit the Vet

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The most commonly claimed medical conditions for pets in the past year are skin allergies, gastrointestinal problems, and dental issues. For dogs, skin allergies are the most common issue while urinary tract disease causes the highest number of ailments for cats.

Accident Only Policy Average Premium Accident & Illness Policy Average Premium Overall Average Premium
Cat $21.34 $33.80 $32.89
Dog $29.41 $59.68 $56.81

Dog Size Groups

Below are the size groups and adult bodyweight of various dog breeds (adult bodyweight was taken at 2 to 5 years of age).

Size group Adult bodyweight Number of breeds in size group
Toy < 5.5 kg 19
Small ≥5.5 to < 11 kg 94
Medium ≥11 to < 26 kg 215
Large ≥26 to < 45 kg 154
Giant ≥45 kg 26
Mixed breed All adult bodyweights 1 (mixed breed)

Life Expectancy Table

Dogs

Below is the expected average of a dog's life expectancy at birth, based on the breed and the year of the survey.

Dogs Life Expectancy 2013 2014 2015 2016 2017 2018 2019 Overall
Toy 12.85 12.99 13.22 13.37 13.53 13.66 13.58 13.36
Small 13.13 13.19 13.41 13.58 13.69 13.79 13.79 13.53
Medium 12.38 12.52 12.54 12.75 12.82 12.87 12.94 12.7
Large 11.22 11.29 11.39 11.56 11.6 11.7 11.7 11.51
Giant 9.1 9.44 9.48 9.43 9.53 9.82 9.7 9.51
Mixed breed 12.15 12.4 12.53 12.66 12.92 12.98 12.98 12.71

Cats

Below is the expected average of a cat's life expectancy at birth, based on the breed and the year of the survey.

Cats LE 2013 2014 2015 2016 2017 2018 2019 Overall
Purebred 10.84 11.03 11.4 11.65 11.76 12.1 11.85 11.54
Mixed-breed 10.29 10.44 10.83 11.24 11.43 11.79 11.69 11.12

Summary -- Important Takeaways & Key Developments

Methodology

To find the costs of pet insurance, we looked at data for pet ownership and insurance premiums in North America for cats and dogs. While there wasn’t much data on exotic pets, since only Nationwide currently covers them, we found pet insurance data on cats and dogs through NAPHIA.

We looked at data regarding pet insurance premiums, costs associated with owning pets, illness and injuries, and number of pet owners.

Resources

  • NAPHIA (North American Pet Health insurance Association) - "Pet Insurance Market Continued Double-digit Growth" - https://naphia.org/news/naphia-news/pet-insurance-market-continued-double-digit-growth/
  • Fortune Business Insights - "Pet Insurance Market Size, Share & Industry Analysis, By Policy Coverage Type (Accident & Illness, Accident Only, Others), By Animal Type (Dog, Cat, Others), By Provider (Public, Private) and Regional Forecast, 2019-2026" - https://www.fortunebusinessinsights.com/industry-reports/pet-insurance-market-101956" - https://www.fortunebusinessinsights.com/industry-reports/pet-insurance-market-101956
  • Nationwide Insurance - "Nationwide Unveils New Avian and Exotic Pet Insurance Plan" - https://news.nationwide.com/nationwide-unveils-new-avian-and-exotic-pet-insurance-plan/
  • NAPHIA (North American Pet Health insurance Association) - State of Industry 2023 Highlights - https://naphia.org/industry-data/section-2-total-pets-insured/
  • American Pet Products Association - Pet Industry Market Size, Trends & Ownership Statistics - https://www.americanpetproducts.org/press_industrytrends.asp
  • Insurance Information Institute - Facts + Statistics: Pet Ownership and Insurance - https://www.iii.org/fact-statistic/facts-statistics-pet-ownership-and-insurance
  • PetMD by Chewy - "How Much Does Pet Insurance Cost?" - https://www.petmd.com/general-health/how-much-does-pet-insurance-cost
  • Nationwide Insurance - "Skin allergies, ear infections among most common conditions that prompt veterinary visits" - https://news.nationwide.com/common-pet-conditions-that-prompt-veterinary-visits/
  • Casualty Actuarial Society - "Pet Insurance 2021: Market Activity, Trends, and Key Issues" - https://www.casact.org/sites/default/files/2022-02/CS28-Pet_Insurance.pdf
  • American Pet Products Association - "Pet Industry Market Size, Trends & Ownership Statistics" - https://www.americanpetproducts.org/press_industrytrends.asp
  • Frontiers in Veterinary Science - "Life Expectancy Tables for Dogs and Cats Derived from Clinical Data" -https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9989186/
  • NAPHIA (North American Pet Health insurance Association) - "Breeds With the Best Pet Insurance Rates" - https://naphia.org/news/phi-in-the-media/breeds-with-the-best-pet-insurance-rates/
  • Market Data Forceast - "Global Pet Insurance Market Size, Share, Trends, COVID-19 Impact and Growth Analysis Report - Segmented By Policy Type, Policy (Dog Insurance, Cat Insurance, Rabbit Insurance, Horse Insurance, Exotic Pet Insurance, Others) and Region - Industry Forecast (2023 to 2028)" -https://www.marketdataforecast.com/market-reports/pet-insurance-market

About The Author

Bryan Huynh

Bryan Huynh

Product Tester & Writer

Bryan Huynh is a dedicated Product Tester & Writer. Just as insurance has your back, Bryan works to review and inform you about the wide range of insurance products available, ranging from business, auto, health, home, pet, to life insurance.

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