16 Pet Insurance Facts & Statistics in 2026 (Vet-Reviewed)
In this article
Note: This article’s statistics come from third-party sources and do not represent the opinions of this website.
Pets are as important a part of families as people, in many cases. This means when they get ill, it can be difficult and even traumatic for owners. It can also be expensive. But pet insurance aims to take the financial worry out of vet bills. Depending on the type of policy and level of coverage, a policy can protect against everything from accidents and injuries to illnesses and ongoing treatment requirements.
It is similar to health insurance for people, although there are more restrictions and exemptions, especially in the case of some hereditary illnesses and pre-existing conditions. Like health insurance, pet insurance requires that you pay a monthly premium to the insurance company. In exchange, if your pet has to visit the vet or needs any treatment that is covered by the policy, the insurer will either reimburse you or pay the vet directly.
Despite its benefits, many owners see it as a waste of money if their pet rarely gets ill, and, as such, only just under 7 million of the country’s over 111 million pet cats and dogs are insured.
Read on for more facts and statistics related to the pet insurance industry.
The 16 Pet Insurance Facts
More than two-thirds of U.S. households own pets.
There are approximately 163.6 million pet cats and dogs in the U.S.
Pet owners spent a combined $158 billion on their pets in the past year.
The global pet insurance market is estimated at $21.8 billion annually.
The U.S. pet insurance market has a total premium value of more than $3 billion.
U.S. pet insurers paid approximately US$3.07 billion in claims in 2024.
Almost 7 million U.S. pets are insured.
75% of insured pets are dogs.
Pet insurance for dogs costs on average $69.67 per month for adult dogs.
Pet insurance for cats costs on average $36.25 per month for adults.
More than 40% of pet owners wouldn’t be able to cover an emergency vet bill.
33% of uninsured pet owners have avoided visiting the vet because of the potential costs.
A quarter of pet owners have refused veterinary treatment due to costs.
40% of pet owners would use credit cards to pay for unexpected vet bills.
Gen Z is the most likely generation to have pet insurance.
A lack of knowledge is the most common reason people avoid pet insurance.
Pet Ownership Statistics
1. More than two-thirds of U.S. households own pets.
(APPA)
The U.S. loves its pets! According to the APPA National Pet Owners Survey for 2025, about 71% of all households in the country own at least one pet. This figure includes dogs and cats, which are the two most popular species of pets, but also includes other animals like fish, birds, and even horses. And while many homes only own one pet, many own two or more, including different species.
2. There are approximately 163.6 million pet cats and dogs in the U.S.
(APPA).
Dogs and cats make up a huge part of America’s pet population. The estimated total in 2025 was 87.3 million dogs and 76.3 million cats, or 163.6 million combined. These are individual animals, which is a different measure from the number of homes that own them.
3. Pet owners spent a combined $158 billion on their pets in the past year.
(APPA)
Looking after our pets adds up! U.S. pet industry spending reached $158 billion in 2025, covering food, supplies, veterinary care, and other services. Spending was projected to reach $165 billion in 2026, but that is a forecast rather than a completed annual total.
Some insurance plans help with eligible prescription medications and other treatment costs. Routine preventive products and prescription diets may have different rules, so check the policy rather than assuming they’re included.
The Pet Insurance Industry
4. The global pet insurance market is estimated at $21.8 billion annually.
(Grand View Research)
Pet insurance is a growing business around the world. The global market was estimated at US$21.8 billion in 2025, with a forecast of US$25.7 billion for 2026. These are market-research estimates, so they shouldn’t be treated as an official worldwide count of premiums collected. The current forecast is approximately 17.5% annual growth for 2026–2033.
(NAPHIA)
Pet insurance is a growing business in the United States too. Total premiums reached approximately US$5.7 billion in 2025, an increase of 19.7% from 2024. This figure represents insurance premiums, rather than the amount insurers paid out in claims.
6. U.S. pet insurers paid approximately US$3.07 billion in claims in 2024.
(NAPHIA)
Pet insurers paid approximately US$3.07 billion in claims to U.S. policyholders in 2024. These payouts helped cover eligible veterinary expenses under their policies.
7. Almost 7 million U.S. pets are insured.
(dwm360)
Pet insurance is becoming more common in the United States. Approximately 6.98 million pets were insured at the end of 2025, an increase of 9% from the previous year. That represents roughly 4.27% of the country’s estimated pet dog and cat population.
8. 75% of insured pets are dogs
(NAPHIA)
Out of those 7 million insured pets, 74.9% of them are dogs. This is despite the fact that insurance for dogs carries higher premiums and is likely because dog vet bills tend to be higher than cat vet bills. Although it is possible to get insurance for other types of pets, options are severely restricted.
Exotic pet and bird insurance policies are available. So, too, is horse insurance. But it is very difficult to find policies for smaller animals.
Pet Insurance Costs
9. Pet insurance for dogs costs on average $69.67 per month for adult dogs.
(NAPHIA)
Accident-and-illness insurance for dogs averaged US$836 a year in 2024, equivalent to about US$69.67 a month. Your own quote may be higher or lower depending on your dog and the coverage you choose. This figure is an industry average, not an adult-dog-only rate.
Most companies have a maximum age policy for new policies but will continue to insure a dog throughout its life as long as an existing policy is in place.
10. Pet insurance for cats costs on average $36.25 per month for adults.
(NAPHIA)
Accident-and-illness insurance for cats averaged US$435 a year in 2025, equivalent to US$36.25 a month. Your own quote may be higher or lower depending on your cat’s age, your location, and the coverage you choose. This average doesn’t include every type of policy, such as accident-only plans.
Pet Insurance Opinions
11. More than 40% of pet owners wouldn’t be able to cover an emergency vet bill.
(Forbes 2)
Pet insurance policies vary according to the level and amount of coverage they offer. Accident-only policies cover pets if they are involved in accidents and need emergency treatment. Unexpected illness policies, which typically also include accident coverage, pay the vet bills for unexpected illnesses. Costs of veterinary treatment can also range from $50 for routine visits to thousands of dollars for tests, diagnosis, treatment, and ongoing care.
More than 4 in 10 owners say they wouldn’t be able to cover the cost if they were faced with an emergency vet bill.
12. 33% of uninsured pet owners have avoided visiting the vet because of the potential costs.
(Marketwatch 2)
While insurance can seem expensive when paying a monthly premium and a pet doesn’t need medical attention, it does offer peace of mind so that owners can ensure their pets get the best possible treatment when required. A third of uninsured owners say they have avoided visiting the vet when their pet is ill because they are worried about the potential cost.
13. A quarter of pet owners have refused veterinary treatment due to costs.
(Pawlicy)
Of those uninsured owners who have visited the vet with their pets, a quarter have refused treatment because they have been unable to afford the costs. A lot of these costs would have been covered by suitable pet insurance policies.
14. 40% of pet owners would use credit cards to pay for unexpected vet bills.
(Marketwatch 3)
In one survey, only 12.9% of respondents said they would use a pet insurance policy to cover the cost of any unexpected vet bills. The most common method of paying for these unexpected costs was a credit card, with around 40% of respondents saying they would use this method. 32.2% would use cash or their savings, and 3.5% would take out a personal loan. 9.2% did not know how they would meet the payments.
15. Gen Z is the most likely generation to have pet insurance.
(Pawlicy)
Pet insurance was introduced in the 1970s, and it is widely claimed that TV dog Lassie was the first pet to be insured. Since then, the financial product has increased in popularity, although by no means has it reached every corner of the pet-owning population. When it comes to the age groups most likely to insure their pets, it is Generation Z that leads the way.
More than half of 18–24-year-olds claim to have pet insurance policies, compared to just 13% of those aged over 54.
16. A lack of knowledge is the most common reason people avoid pet insurance.
(Marketwatch 3)
There are many reasons why owners choose not to insure their pets. The most common reason given by more than a third of uninsured pet owners is that they feel they don’t know enough about pet insurance to buy it. This compares to 28% who said that they believe it is too expensive. 16% said they do not have pet insurance because their pet is healthy.
10% said they have savings to cover vet bills, and 6.5% believe pet insurance to be a scam.
Frequently Asked Questions About Pet Insurance (FAQ)
Do you legally have to insure a cat or dog?
Pet insurance is not a legal requirement. It is up to every owner whether they want a pet insurance policy. It is worth noting, however, that most insurance policies have exemptions that can come into force. For example, most policies do not cover pre-existing conditions. So, while it might seem a waste of money to get insurance for a healthy dog, doing so means your pup is protected against more incidents.
Similarly, most insurers have a maximum age policy. If your pup has a policy before it reaches this age, it will continue as long as you pay the premiums. So, it is better to get a policy when your dog is still young if you intend to get one at all.
Does pet insurance cover existing conditions?
Although it depends on individual policies, pre-existing conditions are not usually covered by insurance. Insurance policies are meant to protect against unexpected illnesses and accidental injuries. However, some policies will protect pets if they have been symptom-free for 12 or 24 months. Always check the policy and ask the insurer to be sure.
Does pet insurance cover preventative treatments?
Depending on the policy type, pet insurance covers accidents and unexpected illnesses. It doesn’t generally cover any preventative treatment. However, some policies do offer incentives, such as free flea treatment for puppies. And some insurers offer add-on wellness policies. These cost money but save a small amount on the cost of flea and other preventative treatments.
Does pet insurance get more expensive if you claim?
When your policy is renewed at the end of its term, the insurer will likely increase the premium if you have made any claims against the policy. This is especially true if your pet is likely to need ongoing and additional treatment that would be covered under the policy terms.
Can you get pet insurance for small animals?
Pet insurance is most commonly offered to cat and dog owners, but it is possible to get insurance for other types of pets. Exotic pets, including lizards and snakes, can be insured under exotic pet insurance policies. Horse insurance certainly exists and can cover injury to the owner as well as damage to vehicles or property.
If you shop around and ask some of the more specialized insurers, you might be able to find policies for birds and even for small animals like ferrets and guinea pigs. However, these policies are rare, and you won’t have the kind of choice that a cat or dog owner would have when shopping for insurance.
Conclusion
Pet insurance can cover some of the unexpected costs associated with owning cats and dogs, and it is even possible to insure some other pet animal species, but the vast majority of pet owners still do not have pet insurance. Experts expect market penetration to continue to climb in the coming years, which, combined with the increased pet population size, will also see the pet insurance industry continue to grow.
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Sources
Featured Image Credit: visivastudio, Shutterstock
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Christian started writing for a local newspaper as a teenager, and he's been involved in the publishing industry for most of his adult life. Combining his love of writing with a passion for animals, he is currently the Director of Editorial at Pangolia and the Editor-in-Chief at Catster.
Christian lives in the Philippines with his wife, son, and four rescue cats: Trixie, Chloe, Sparky, and Chopper.
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