Pet insurance can reduce out-of-pocket costs
Pet owners are increasingly turning to pet insurance to meet rising care costs and to give their pets the best options for their healthcare. Nearly 5 million pets were insured in 2022, and the number increased in 2023 to 5.7 million, marking a big leap compared to the 3.1 million pets insured in 2020, based on data from the North American Pet Health Insurance Association (NAPHIA).
The pet insurance industry had a 23.5% increase in policies sold in 2022 as more pet owners took advantage of this resource, NAPHIA found. The number of pets covered by insurance has also increased, growing by 17.1% in 2023, with dogs being insured the most (78.6%) compared to cats (21.4%).
Pet owners favor pet insurance
Nearly all pet owners (92%) who have pet insurance say it’s worth it, while 53% of those who don’t have pet insurance believe it’s worth the cost, according to Experian. Pet insurance may also encourage better healthcare for pets; 50% of owners with pet insurance visit the vet more than once a year, while only 1 in 5 of pet owners without insurance do the same.
Although pet adoptions are decreasing slightly, the number of pets insured is on the rise. People who own pets recognize how pet insurance can help them meet the needs of their pets, help keep care affordable, and give them peace of mind.
Common conditions and claims using pet insurance
Pet insurance can ease the financial burden of multiple pet visits or emergencies. The most common medical conditions that dog owners submitted claims for in 2023 were GI system issues, including diarrhea and vomiting. Skin conditions were the second most common claim. Kidney and bladder problems, ear infections, and allergies rounded out the top five, according to data from NAPHIA.
Similar conditions for cats topped the list of common claims for 2023. The most common claims were for kidney and bladder issues, while conditions with the GI system, such as diarrhea and vomiting, came in second. Respiratory issues, dental disease, and skin conditions made up the rest of the top five, NAPHIA found.
Having pet insurance can offset the care costs related to these common claims. Veterinarians often take X-rays and may need to perform ultrasound scans to diagnose GI issues. X-rays for a dog can cost anywhere from $75 to $500, according to CareCredit, with the average costing $150 to $250. Ultrasounds for dogs are even more expensive, costing an average of $300 to $500.
If a cat needs treatment for a urinary tract infection, CareCredit reports that the initial diagnosis, excluding testing for underlying causes, could cost an average of $200 to $300. And the cat will likely require a follow-up visit at the same cost. Costs for dental cleanings to help prevent or treat dental disease average $315 but can range from $115 to $600.
An emergency visit can prove costly for dog and cat owners, averaging $800 to $1,500, while emergency surgery can add on thousands more dollars.
But when pet owners buy pet insurance, they can choose a deductible and reimbursement amount. Once they’ve met the deductible, the insurance company will reimburse them for the money they paid for their pet’s care based on the reimbursement percentage they chose.
For example, if a pet owner selected coverage with the ASPCA with a $100 deductible and 90% reimbursement for annual coverage of up to $2,500, a $1,000 vet bill would only cost them $190, if they hadn’t met the deductible yet. They’d pay $100 for the deductible, leaving a $900 balance, and then they’d pay 10% ($90) of the remaining $900 since insurance covers 90%.
They would be reimbursed for $810 since that is what their insurance would cover. That $810 then goes toward the annual coverage maximum. In 2023, the top paid-out claim for dogs in North America was $51,133, and the top paid-out claim for cats was $59,470, based on data reported by NAPHIA.
Pet insurance premiums
Breed, age, and physical condition of a pet, as well as the type of coverage a pet owner selects, all play a role in premium pricing. Lemonade has a lower average annual premium ($219 for cats and $395 for dogs) compared to Fetch Pet’s $573 for cats and $1,225 for dogs.
Alaska is the state with the highest average annual premiums, at $630 for cats and $912 for dogs. Montana has the lowest premiums for cats ($222), and Arkansas has the lowest for dogs ($468).
Dogs typically carry a higher average annual premium of $721, which is nearly double that of cats ($390). Some of the most commonly insured dog breeds in the U.S., based on Insurify data, include:
Chihuahua: 5.9%
Pitbull: 4.9%
German shepherd: 3.6%
Shih tzu: 3.5%
Labrador retriever: 3%
Yorkshire terrier: 3%
Breed plays an important role in determining insurance premiums. Among feline breeds, Norwegian forest cats have the lowest average annual premium, at $287. Himalayan cats have the highest premium, at $722, followed by Persian cats, with $690.
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Norwegian forest cat | $287.13 |
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American bobtail | $292.20 |
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Unsure/mixed breed | $325.97 |
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Domestic shorthair mix | $327.03 |
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Bombay | $361.80 |
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Domestic shorthair | $377.24 |
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Russian blue | $395.89 |
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Domestic medium hair mix | $410.55 |
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Ragdoll | $428.10 |
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Siamese | $454.86 |
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Domestic medium hair | $465.11 |
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Bengal | $475.41 |
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Domestic longhair | $492.69 |
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American shorthair | $497.15 |
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Snowshoe | $508.96 |
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British shorthair | $537.13 |
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Sphynx | $551.22 |
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Maine coon | $565.42 |
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Persian | $690.10 |
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Himalayan | $722.47 |
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Larger dogs have shorter lives and higher risks for health issues, making them more expensive to insure. Miniature labradoodle mixes have the lowest average annual premium ($358). Mastiff breeds have the highest, with $1,331, followed by Bernese mountain dogs ($1,217) and shar-peis ($1,217).
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Miniature labradoodle mix | $357.94 |
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Cavapoo mix | $442.30 |
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Miniature goldendoodle mix | $491.42 |
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Shih-poo mix | $507.24 |
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Shih tzu mix | $508.16 |
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Cavalier King Charles spaniel mix | $521.21 |
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Yorkie-poo | $530.61 |
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Great Pyrenees mix | $531.66 |
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Chihuahua mix | $531.72 |
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Miniature Australian shepherd | $539.60 |
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Husky mix | $541.75 |
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Unsure/mixed breed small (up to 20 lbs) | $542.39 |
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Schnoodle mix | $542.62 |
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Australian shepherd mix | $544.05 |
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Goldendoodle | $546.56 |
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Terrier mix | $552.20 |
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Malti-poo mix | $552.84 |
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Australian shepherd | $556.93 |
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Yorkshire terrier mix | $559.21 |
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Biewer | $565.03 |
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Brittany | $575.45 |
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Morkie mix | $577.84 |
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Jack Russell terrier mix | $586.16 |
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Cockapoo mix | $589.92 |
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Sheepadoodle mix | $593.75 |
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Belgian Malinois | $594.37 |
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Pekingese mix | $595.27 |
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Poodle - teacup | $595.85 |
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Border terrier | $598.86 |
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Chihuahua | $605.59 |
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Cavachon mix | $606.20 |
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German shepherd mix | $607.63 |
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Poodle mix | $609.96 |
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Australian cattle dog mix | $615.67 |
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Blue heeler | $616.28 |
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American foxhound | $616.72 |
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Corgi | $626.13 |
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Beagle mix | $629.15 |
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Labradoodle | $634.90 |
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Husky | $635.69 |
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Maltese mix | $637.02 |
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Shih tzu | $642.12 |
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Shiba Inu | $645.71 |
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Yorkshire terrier | $646.03 |
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Poodle - standard | $648.07 |
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Border collie | $654.74 |
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Miniature poodle | $657.36 |
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Welsh corgi | $657.81 |
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Miniature dachshund | $661.67 |
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Chihuahua, long-haired | $667.02 |
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Pug mix | $669.49 |
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Afghan hound | $670.19 |
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Scottish terrier | $674.23 |
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Border collie mix | $680.54 |
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Jack Russell terrier | $681.61 |
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Unsure/mixed breed medium (21–70 lbs) | $682.02 |
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Catahoula leopard dog | $683.24 |
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Havanese mix | $684.33 |
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French bulldog mix | $685.92 |
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Dachshund | $689.10 |
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Akita mix | $692.81 |
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Rat terrier mix | $697.39 |
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Boston terrier | $698.70 |
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Papillon mix | $705.70 |
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Shetland sheepdog | $706.28 |
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Boston terrier mix | $707.64 |
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Australian cattle dog | $725.47 |
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Havanese | $726.87 |
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Poodle - toy | $729.55 |
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Anatolian shepherd dog | $730.50 |
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Maltese | $730.68 |
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Pomeranian mix | $736.03 |
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American Eskimo dog | $736.38 |
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Bichon frise mix | $742.50 |
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Cairn terrier mix | $743.24 |
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Miniature pinscher mix | $743.43 |
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German shepherd | $746.36 |
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Pomeranian | $747.94 |
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Bernedoodle mix | $753.13 |
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Miniature schnauzer | $763.60 |
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Doberman pinscher mix | $767.05 |
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Miniature pinscher | $771.30 |
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Black mouth cur | $771.77 |
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English springer spaniel | $779.08 |
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Rat terrier | $780.43 |
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Labrador mix | $788.76 |
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Cane corso mix | $790.65 |
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Papillon | $791.04 |
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Golden retriever | $795.06 |
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Cavalier King Charles spaniel | $795.62 |
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Great Pyrenees | $795.71 |
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Pug | $803.36 |
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Akita | $807.49 |
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German shorthaired pointer | $808.05 |
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Great Dane mix | $812.13 |
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Pitbull | $816.18 |
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Boxer mix | $839.20 |
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Unsure/mixed breed large (71+lbs) | $841.44 |
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Beagle | $843.17 |
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Brussels griffon | $852.53 |
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Coton de Tulear | $862.05 |
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Plott hound | $862.19 |
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Bull terrier | $863.87 |
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Presa Canario | $868.67 |
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Chow chow | $876.95 |
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American cocker spaniel | $880.38 |
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Lhasa apso | $881.17 |
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Airedale terrier | $883.07 |
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Affenpinscher | $891.03 |
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Pit bull mix | $897.88 |
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Mountain cur | $900.12 |
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Basset hound | $910.24 |
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Dalmatian | $914.33 |
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Corgi mix | $920.73 |
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Labrador retriever | $924.51 |
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Schnauzer | $930.11 |
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Pit bull | $935.61 |
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Cane corso | $938.29 |
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Japanese chin | $943.08 |
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Airedale terrier mix | $957.73 |
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Bichon frise | $967.92 |
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Weimaraner | $970.57 |
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Alaskan Malamute | $979.35 |
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Poodle | $988.80 |
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Collie | $996.67 |
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Puggle mix | $997.10 |
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French bulldog | $1,011.49 |
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Dogo Argentino | $1,023.07 |
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Rottweiler mix | $1,023.30 |
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Bloodhound | $1,024.54 |
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Rhodesian ridgeback | $1,031.64 |
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West Highland white terrier | $1,032.64 |
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Basset hound mix | $1,052.73 |
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Soft-coated wheaten terrier | $1,056.53 |
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Olde English bulldogge | $1,063.39 |
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Cairn terrier | $1,077.52 |
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Pekingese | $1,080.88 |
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Saint Bernard | $1,081.76 |
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Bulldog mix | $1,085.21 |
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Cocker spaniel | $1,100.86 |
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Newfoundland | $1,106.05 |
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Great Dane | $1,119.62 |
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Boxer | $1,145.01 |
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Rottweiler | $1,159.60 |
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Doberman pinscher | $1,173.16 |
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Bulldog | $1,176.65 |
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Shar-pei | $1,209.34 |
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Bernese mountain dog | $1,217.44 |
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Mastiff | $1,331.43 |
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