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How Many People Have Pet Insurance in the US? 2024 Update

Jessica Kim

By Jessica Kim

veterinarian examining pug dog and cat in clinic

Pet insurance has become increasingly popular in the US. Just a few years ago, people would be confused and ridicule people for having pet insurance plans. However, it’s becoming more of a standard practice as veterinary care prices have risen.1

It’s essential for pet owners to be well-informed of developing trends. Our update on pet insurance in the US will help you to stay in the know about this topic and to provide the best care for your pet’s health. About 4.5 million pets are currently insured in the US. Keep reading to learn more!

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The Importance of Pet Insurance

According to Forbes, premiums for dog insurance plans range from $20-44 a month and $12-46 a month for cat insurance plans. Plans for unlimited annual coverage average between $50-$56 for cats and dogs.

Insurance plans can help you save on costs, especially if your pet ends up requiring expensive surgeries and treatments. For example, chemotherapy costs can range from $2,500-$7,000, and hip dysplasia surgery is around $1,500, excluding consultation fees and diagnostic tests.

So, having a pet insurance plan can give you peace of mind and help you to budget your pet care costs. You have more predictable expenses, and there’s less risk of having to use your own emergency funds on unexpected vet bills.

If you are looking for a pet insurance plan that offers great value, Spot's customized plans can be adjusted to suit your pet and your budget. You may be able to cover your pet at a cost that suits you.

white cat with the owner
Image Credit: New Africa, Shutterstock

How Many People Have Pet Insurance In the US?

According to the latest statistics from the North American Pet Health Insurance Association (NAPHIA), approximately 4.41 million pets were insured by the end of 2021. This is about a 28% increase from 2020.

While it may seem like a lot of pets have pet insurance, this number is small compared to the number of families that have pets. A survey conducted by the American Pet Products Association (APPA) recorded that about 90.5 million families in America have at least one pet.

NAPHIA’s study also revealed the top five states with the highest percentages of insured pets.

California New York Florida New Jersey Texas
19.4% 9.1% 6.2% 5.4% 5.1%

Popular Pet Insurances Providers In the US

Some of the most popular pet insurance providers in the US are Embrace Pet Insurance, Lemonade Pet Insurance, and Spot Pet Insurance.

Embrace has accident and illness plans and accident-only plans that are reasonably priced. While it doesn’t supply a standalone preventative care plan, you can add an optional rider to a plan to receive reimbursements for some routine care costs. Embrace will also reduce the deductible by a certain amount for each year you don’t receive any reimbursement claims.

Lemonade Pet Insurance is another popular option because of its affordability. You can find some pretty cheap plans and receive decent coverage on accidents and illnesses. It’s just that it only provides plans in 36 states, so some people won’t be able to apply for Lemonade Insurance Plan if they don’t live in a qualifying state.

Lastly, Spot Pet Insurance is extremely popular because of its comprehensive coverage. While its premiums tend to be a little more expensive, the base plan includes coverage for services that its competitors won’t, such as alternative therapy and therapy for behavioral issues.

close up of veterinarian examining dog with stethoscope
Image Credit: areetham, Shutterstock

Trends About Pet Insurance In the US

With about 95% of Americans considering pets as part of the family and the rise in pet care costs, the pet insurance industry is predicted to continue to grow. NAPHIA documented that out of all insured pets, 82.9% are dogs, and 17.1% are cats, so cats remain a relatively untouched target group.

Regarding the types of plans, accidents and illnesses plans are the overwhelmingly popular choice with 98% of in-force pet insurance plans being accident and illness plans. Just 2% of purchased plans are accident-only plans.

NAPHIA documented that the total premium volume for pet insurance in 2021 was almost $2.6 billion, which is a 30.4% increase from 2020. 2021 also marks the 7th consecutive year in which pet insurance growth reached double-digit percentages.

Overall, it is highly anticipated that more pet insurance providers and better services will appear in future years for several reasons. First, only a small percentage of pets are insured. California has the largest percentage of insured pets, but less than 20% of pets in California are insured.

Also, pet care costs are rising, and the majority of pets are viewed as valuable family members. Based on these trends, experts are optimistic about seeing continued expansion and long-term growth in the pet insurance industry.

If you are also one of those thinking about getting your pet insured we will help you with your choice. These are a few of the top-rated pet insurance companies you can start your comparison of plans with:

Top Rated Pet Insurance Companies:

Best Wellness Plans
Our rating: 4.1 / 5
Best for Direct Payments
Our rating: 4.0 / 5
Best Holistic Coverage
Our rating: 4.5 / 5

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Frequently Asked Questions

How do I choose the right insurance for my dog?

Some of the key things to consider when shopping for pet insurance are knowing your pet’s medical history and determining your budget. Pet breeds can have hereditary conditions that you can use as predictive markers that help you anticipate the type of medical care they’ll need. You can then start your search for pet insurance plans that cover those anticipated costs.

Other factors affecting pet insurance costs are your deductible amount, reimbursement rate, and annual limit. Some providers allow you to choose these factors, while others will give you a predetermined arrangement based on their underwriting process.

What is not covered by pet insurance?

For the most part, pet insurance doesn’t cover pre-existing conditions, cosmetic procedures, preventable diseases, and grooming. Some comprehensive coverage plans will reimburse alternative therapies and prescription pet food.

Insurance companies also often have optional add-ons or riders to expand your pet insurance coverage. Some examples of add-ons would be wellness and routine care, breeding and pregnancies, and boarding costs.

Do pet insurance premiums go up with age?

Yes, premiums do go up as pets age. Many pet insurance companies also have an age limit and will not accept insurance applications for senior pets. Common age limits you’ll see are 8 years old and 14 years old.

Other pet insurance companies may automatically move your pet from an accident and illness plan to an accident-only plan when it reaches a certain age. So, make sure to ask insurance providers about how they insure older pets so that you can find a plan that works well for your pet as it ages.

A vet doctor using a stethoscope on a cat

 

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Conclusion

Pet insurance is a growing market in the US pet industry, and it does not look like its growth is declining any time soon. With the rise in pet care costs, insurance is starting to look like a more reasonable and cost-saving option for pet owners. So, make sure to carefully consider your pet’s anticipated medical care costs and your budget to help you determine if pet insurance is right for your situation.

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