Pet Insurance Costs Heating Up for Nearly 300K California Pet Parents This Summer

Pet insurance premiums are set to soar for more than 291,000 California pet parents this year. Californians with Trupanion, Figo, and PetPartners will see their insurance rates increase between 7.9% and 19% when their policies next come up for renewal.

The California Department of Insurance (CDI) approved a 19% rate increase request from American Pet Insurance Company, which underwrites Trupanion pet insurance in California. The rate increase will affect 94,326 policyholders throughout the state.

Independence American Insurance Company, which underwrites Figo, V4, and PetPartners programs, won approval for an overall increase of 7.9%, according to documents the insurer filed with the CDI. Depending on the type of policy and other factors, some customers will see premium reductions, while others could see their premiums increase by more than 37%.

The changes will affect 197,543 policyholders.

Impact on pet owners’ pocketbooks will vary widely

The approved rate increases will hit pet owners differently, pushing premiums up in most cases and down in some.

In its CDI filing, Independence American asked to increase its rates for accident and illness plans by 12% and cut its rates for accident-only and preventive care plans by 30% and 22%, respectively. The overall rate impact is an increase of 7.9%.

Most policyholders will see effective premium increases ranging from less than 5% to as high as 40%. Actual dollar increases to annual premiums will range from around $30 to $279. Approximately 12,610 customers will see rate decreases ranging from less than 5% up to 30%. Their savings will be as low as $11 annually and as high as $109. The increases will begin on July 1.

American Pet Insurance Company’s approved increase takes effect July 19 and will see the effective increase in policyholder premiums range from less than 5% to as high as 70%.

What’s next: Rising veterinary costs push pet insurance premiums higher

Veterinary costs continue to rise across the country.

Pet owners spend, on average, $4,000 annually per pet. Costs are significantly higher — up to $10,000 annually — for pets with chronic conditions, according to a study by pet insurer Healthy Paws.

The typical vet bill has soared by 32% since 2020, hitting $392 per claim in 2025, the insurer reports.

“Higher vet bills mean higher pet insurance payouts, which often cause insurers to increase rates to maintain a healthy financial standing,” said Matt Brannon, senior economic analyst of insurance at Insurify. “In 2024, U.S. insurers’ margins were worse for pet insurance than they were for either home or auto.”

As of April 1, the average cost of pet insurance in the U.S. was $43 per month for dogs and $23 monthly for cats, according to Insurify data. That means pet insurance makes up about 13% of annual pet owner spending for dogs with coverage and 7% for insured cats.

Approximately 4% of American pets have pet insurance coverage, according to the North American Pet Health Insurance Association (NAPHIA).

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