Is Pet Insurance Worth it?

Reviewed by Dr. Fiona Lee

Is pet insurance worth it? Many pet owners ask this question when they realize just how high veterinarian bills can get. And the answer is a resounding yes! A good pet insurance policy may help you afford to get your pet emergency treatment that might otherwise cost thousands of dollars. On top of that, some plans even offer options for helping cover routine care. In the long run, pet insurance just makes sense.

Research shows that 66% of U.S. households have a pet and spend about $70.3 billion on veterinary care, supplies and over-the-counter medication.¹ These overall costs are only expected to grow as pets live longer and standards of veterinary medicine improve.

Unfortunately, inflationary pressure can lead pet owners to cut down on their veterinary visits.  In 2025, there was a 3% year-over-year decline in visits to the vet, which increasing veterinary costs may have influenced, along with the rising cost of living.²

This is where pet insurance may help. On average, those who have pet insurance can give their pets more veterinary care than those without—up to hundreds of dollars more per year, in fact.³ Pet insurance may ultimately save lives.

Pros and Cons of Pet Insurance

If you’re trying to decide whether or not to get pet insurance, this table can give you a quick overview as to whether it’s right for you. Hundreds of thousands of pet parents across the U.S. have invested in this service, but some might decide to fund their pet’s health care with alternative methods, which we will explore later in this article.

What Does Pet Insurance Cover?

Pet insurance is available for cats, dogs, birds and even more exotic pets like rodents, rabbits and reptiles. Purchasing pet insurance may help you alleviate stressors tied to sudden bills from unexpected accidents and illnesses.

Just like health insurance, pet plans charge monthly premiums and cover specific health issues after the deductible is met, sometimes up to a yearly maximum payout cap.⁴

Plans are typically broken down into three main categories: accident-only (covering unexpected accidents like bites, car accidents or foreign body ingestion), accident and illness (covering accidents, chronic illnesses, cancer and sometimes diagnostics) and wellness (covering preventive care like vaccinations and dental care).⁵

Most pet insurance plans will reimburse you after you pay your veterinarian, though some may pay the provider directly. Your premium will increase based on the level of coverage you want, how high the cap is (some are unlimited) and your pet's age and health. Pre-existing conditions are typically not covered.⁴

How Much Does Pet Insurance Cost?

Drawing on data from the North American Pet Health Insurance Association's (NAPHIA’s) 2026 State of the Industry Report, the average price for an Accident and Illness plan for a dog in 2025 was $836 a year, which works out at $69.67 a month. For cats, the average cost for Accident and Illness coverage was $435, or $36.25 a month.

The price of pet insurance coverage can vary based on a number of factors including the breed and age of your pet and your location. Pet insurance prices can also be affected by the rising cost of veterinarian services, which rose 5.7% from 2024 to 2025.² This means that the price of pet insurance premiums across the industry increases too. As well as inflation, vet bills can increase due to advancements in veterinary care that make more treatment options available to our pets.

Reimbursement vs Direct Pay

One factor that may influence your decision whether or not to get pet insurance is whether the provider is able to pay your vet directly. Here at Pets Best, we offer Vet Direct Pay, which can be a big help during emergencies. With traditional reimbursement, you pay the bill first and you’ll receive a payment later from your insurance provider covering a percentage of the cost. However, with direct pay, your insurance provider may be able to pay a portion of the vet bill upfront.

To use Vet Direct Pay, submit a claim along with your veterinarian reimbursement release form and we’ll send our portion of the bill straight to your vet. You’ll still have to pay your deductible, co-insurance amount, and the cost of any non-covered items.

6 Reasons Pet Insurance Is Worth It

Here's a closer look at six reasons why pet insurance is worth the cost in 2026.

1. Unexpected illnesses and accidents can cost thousands of dollars

Often, pet insurance isn't really about covering smaller bills, like vaccinations or general exams. Instead, it's about making sure you can help your pet during emergencies like accidents, injuries and unexpected illnesses.⁶ And the prices of these emergencies are increasing by the year.²

Here is a run down of some of the costs you might face without insurance for emergency veterinary care.⁸

• Emergency exam/triage fee only: $100 - $250
• Minor issue (ear infection, small wound, mild upset): $150 - $500
• Vomiting/diarrhea workup + fluids: $500 - $3,000+
• Toxin or poison ingestion: $300 - $5,000+
• Cat urinary blockage (male cat): $1,500 - $3,500+
• Foreign-body/obstruction surgery: $800 - $7,000+
• Hit by car/major trauma: $1,000 - $6,000+
• Overnight hospitalization/ICU (per day): $600 - $3,500+
• Breathing difficulty/oxygen therapy: $1,000 - $5,000+
• Blood transfusion (per unit + workup): $400 - $1,500+

Pet insurance may help offset costs like these (and sometimes cover most of the cost if the plan doesn't have a maximum annual limit). For many pet owners, it's a lot easier to budget a small monthly premium than to suddenly come up with thousands of dollars without warning.

2. Signing up when your pet is young may reduce pre-existing conditions

Most cat and dog insurance plans don't cover pre-existing conditions.⁶ This means if your pet already has an illness like arthritis or asthma when you sign up for pet insurance, treatment for those conditions won't be covered.

That's why it's a good idea to start insurance early when your pet is a healthy puppy or kitten, even if you don't "need" it yet. If your pet develops a condition later, it will be covered. Just be sure to read the policy's fine print first. Some may have breed-specific exclusions, while others might consider a condition pre-existing if it develops within the first year of enrollment or during a waiting period.

While you may be able to avoid pre-existing condition exclusions by signing up early, your monthly premiums might still increase as your pet ages and is more likely to need care. So ask the insurer how premiums change with time.

3. A plan might save your pet's life and save you stress

Sometimes, pet insurance can save a pet owner from having to make the devastating choice between financial solvency or treating their pet's illness or accident. Bankruptcy can be a real danger when it comes to veterinary bills.

For example, according to NAPHIA’s 2026 State of the Industry Report, the top-paid claim for dogs was $66,600 to treat a 3-year-old Bernese mountain dog for an undiagnosed chronic illness. The top-paid claim for cats was $51,600 for a 4-year-old American shorthair treated for cancer.⁹

There's one caveat: Ask your insurer if there's an annual or lifetime cap on how much they pay out.⁶ Pets Best plans, for example, offer a variety of coverage limits, including unlimited coverage options.

For some pet owners, knowing that they can afford their pet's treatment is enough to make pet insurance worth it. This avoids devastating situations, such as when someone might have to consider "economic euthanasia" for a pet in pain. If your pet develops a chronic condition, you could end up getting reimbursed thousands, along with potential heartache.⁶

4. Wellness add-ons can cut down on routine care costs

Most policies don't include routine wellness care, but you can get that as an add-on. These wellness plans typically don't have deductibles, but instead pay a set amount per treatment. The type of wellness and preventive care they might cover includes spays and neuters, teeth cleaning, vaccinations, general exams, heartworm tests, fecal analysis, deworming and the like.⁶

One study found that pet owners with a wellness plan visited their veterinarian about 20% more than those who didn't have a wellness plan.¹⁰

5. You can customize your pet insurance policy to fit your needs

Another benefit of pet insurance? You can choose the policy that best meets your pet's needs and your budget. If you want the lowest monthly premium possible, you can choose a plan that covers unexpected accidents and illnesses with a larger deductible. You won't be using it for smaller costs, but it can come in handy if your pet has an accident that costs thousands. If you want to cover every contingency, you can choose a higher monthly premium that comes with a low deductible and add on wellness coverage.⁶

As with almost any big purchase, do your research. Some pet insurance policies may be a better fit for your budget than others. The American Veterinary Medical Association notes that deciding about pet insurance is really up to you. But the organization recommends researching the following questions before choosing a policy:¹¹

• What are the exclusions?
• Are pre-existing conditions covered? Are certain breed-specific conditions excluded?
• Do premiums increase as your pet ages or as you make claims?
• Can you add options for routine care or dental coverage?
• Are there discounts for insuring more than one pet?
• What are the deductibles, fees, copays and annual lifetime or yearly caps?
• Will you be reimbursed or does the policy pay the veterinarian directly? How long do claims take to process?

6. You may have access to a 24/7 veterinary hotline

Some policies offer benefits beyond helping you cover the costs of care. For example, Pets Best policyholders have access to a free 24/7 Pet Helpline via phone, live chat or email. This can help with questions about pet behavior, training, healthcare, emergency care (like asking about something your pet accidentally ingested) and more.

When Pet Insurance Might Not Be Worth It

So you can see there are many reasons why pet insurance is worth it, for a lot of people—but there are also a few circumstances in which it might not be worth it.

For instance, if you have a pet who has a lot of health issues, you might find that pet insurance won’t cover treatment for those conditions—-meaning that you’ll be paying the entirety of those bills, on top of a pet insurance premium. However, it’s worth bearing in mind that pet insurance helps pay for treatment in emergencies that nobody could predict, covering both new health conditions and accidents.

It can be a similar story when it comes to senior pets, as in the course of their lives they’re more likely to have developed health conditions. But it’s always worth checking the rates at different providers to see what kind of coverage is available for your older dog. Here at Pets Best we’ve been named one of the best pet insurance providers for senior dogs by CNBC Select, who flagged the affordability of our plans as a major plus. 

Lastly, for those with very substantial savings, you might find that you’d rather pay the vet bill yourself whenever needed, rather than paying a monthly premium. Vet bills can cost several thousand dollars so this won’t work for everybody.

Pet Insurance vs a Savings Account

Some people choose to “self-insure”, setting aside the amount of money they might spend on a pet insurance plan, and putting it in a savings account instead. Whether this way of paying for veterinary care works for you depends on the type of healthcare your pet needs – and when they need it. While the money in your savings account will grow with interest as well as every payment, if your pet needs emergency care sooner than you’d predicted, there might not be enough in the account to cover their treatment. 

Pet Insurance Can Be Worth the Cost

With so many customizable options, pet insurance is a good choice for many cat and dog owners. If you start when your pet is a puppy or kitten, you can get the best coverage possible at the lowest monthly price. Even when your pet is older, pet insurance can still be worthwhile to help cover conditions that develop later in life.

Purchasing pet insurance may help you protect your dog or cat from accidents and illnesses that develop unexpectedly. At Pets Best, our dog insurance plans and cat insurance plans can be customized for your pet's unique needs. In addition, Pets Best policyholders can speak to a veterinary expert anytime through our 24/7 Pet Helpline.

Sources/Citations

1. "Industry trends and stats," (2024), American Pet Products Association, https://www.americanpetproducts.org/research-insights/industry-trends-and-stats

2.”Veterinary Industry Summary: July 13-19, 2025,” (7/2025), Vetsource Veterinary Analytics, https://veterinaryanalytics.com/blog/veterinary-industry-summary-july-13-19-2025

3. "Does pet health insurance make sense for clients?" (7/2021), American Veterinary Medical Association, https://www.avma.org/blog/does-pet-health-insurance-make-sense-clients

4. "Facts about pet insurance," (n.d.), Insurance Information Institute, https://www.iii.org/article/facts-about-pet-insurance

5. "Pet insurance statistics 2024," Erin Schmidt (2/2024), ConsumerAffairs, https://www.consumeraffairs.com/pets/pet-insurance-statistics.html

6. "Is it worth it to have pet insurance?" Jim Probasco (1/2022), Investopedia, https://www.investopedia.com/is-it-worth-it-to-have-pet-insurance-5075941

7. "Consumer price index for all urban consumers," (7/2024), U.S. Bureau of Labor Statistics, https://www.bls.gov/news.release/cpi.t02.htm

8. "Pet emergency statistics and veterinary costs," (n.d.), Preventive Vet, https://www.preventivevet.com/pet-emergency-statistics

9. "State of the industry report: 2026 highlights," (4/2026), North American Pet Health Insurance Association, https://naphia.org/wp-content/uploads/2026/06/NAPHIA_SOI2026_Report_HIGHLIGHTS_26-06-24.pdf

10. "The impact of pet health insurance on dog owners' spending for veterinary services," Angelica Williams et al. (7/2020), Animals (Basel), https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7401533/

11. "Do you need pet insurance?" (n.d.), American Veterinary Medical Association, https://www.avma.org/resources-tools/pet-owners/petcare/do-you-need-pet-insurance