Our pets are family members, and ensuring they are protected is why many consumers consider purchasing pet insurance. As of 2025, 94 million American U.S. households own a pet. Only 6.25 million are covered by an insurance policy in 2023. If you think you can’t afford it, consider this: For dogs, annual surgical vet visits cost $458 and routine vet visits cost $242, according to APPA. For cats, annual surgical vet bills cost $201 and routine vet visits cost $178. Those costs can increase as pets age. Pet insurance can reduce these numbers significantly. Medical technology has improved for animal treatment and disease prevention by leaps and bounds. But that technology doesn’t come cheap. If your dog develops an eye cataract, the surgery could set you back as much as $5,600.

Most pet health insurance plans have a few basics in common. There are three types of pet health insurance coverage: accident only, accident and illness or accident, illness and wellness. The cost ranges between providers, dependent on factors such as breed, age, prior medical history of your pet, etc. Other basics include:

• You choose a reimbursement and deductible from a few options.
• You go to any veterinarian you choose, pay your vet first, file a claim and then get reimbursed.
• Any pre-existing conditions and related treatments are not covered. Breeding issues, experimental treatments, and cosmetic surgery are also typically not covered.

There are also differences to look for between companies. Some of the most important differences are:

Coverage

Look closely at coverage and understand the exclusions. Does the policy cover congenital and hereditary conditions? These are conditions that your particular breed may be prone to develop, such as heart defects, eye cataracts, bleeding disorders or Brachycephalic Syndrome, which is common in dogs with short snouts, such as bulldogs and pugs.

Reimbursement Method

How will you be reimbursed? Check to see if the insurance company will pay a percentage, pay what they consider “usual and customary” or pay on a benefits schedule. Benefit schedules or “usual and customary” policy language may lower your reimbursement amounts, so beware.

Limits

Are any limits or caps applied per incident, per year or over the pet’s lifetime? Some policies require a deductible per incident or cap the reimbursement amount for extensive surgeries or after a certain age. These are conditions to watch for so that the money you put into the policy is not greater than what you receive in health expense coverage for your pet.

Customer Care

This is important for all insurance companies and should be considered from the first conversation you have with a customer service representative during your research. After all, service is a huge part of the perceived value and benefits once the policy is purchased. Check to see what other customers are saying about their care and claims experience once you have narrowed it down to 3-4 companies based on the above comparison recommendations.

Whether you opt for pet insurance or not, consider the costs of pet ownership and how you plan to pay for expected and unexpected expenses. Do the research and shop around so you can be well-informed and prepared.

If you have any insurance questions, please call our Consumer Assistance Division at 800-522-0071.