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.
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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Pet insurance has existed outside North America since 1890, but the first pet insurance policy issued in the US was in 1982, for the famous TV border collie Lassie
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Pet insurance for exotic animals (such as birds, rodents, etc) cost around the same as standard pet insurance; however, only one provider currently – Nationwide – currently offers coverage for exotic pets
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Dogs are more likely to be insured than cats
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However, insured cats are growing at a faster rate than dogs
| 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
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 |
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.
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
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
| 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
| 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
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
- Dogs typically make more veterinarian visits than cats since cats are less likely to incur an injury
- Pet insurance costs for dogs are higher than pet insurance costs for cats and larger dogs tend to have higher premiums
- Pet insurance costs vary by breed – specifically, larger dogs tend to have higher premiums than smaller dogs
- Insurance policies for dogs led the industry in 2021 and are projected to continue
- Global pet insurance market size is predicted to reach $7.5 billion by 2023
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
Edited by:
Bryan Huynh
•
Product Tester & Writer
