Is pet insurance worth it? Who benefits the most

Pet insurance: The basics

Pet insurance for accidents and illnesses averages $32.21 a month for a cat and $62.44 a month for a dog. It covers accidents and illnesses, typically on a reimbursement basis, and doesn’t cover wellness care, although it’s often available separately or as an add-on. Pet insurance is the best investment for young, healthy pets and breeds prone to expensive conditions.

How much does pet insurance cost on average?

According to the North American Pet Health Insurance Association (NAPHIA) [2025], accident and illness premiums for dogs average $62.44 a month, and the same coverage for cats averages $32.21 monthly. Accident-only coverage is cheaper, averaging $16.10 a month for dogs and $9.17 a month for cats.

Pet insurance rates vary significantly based on factors such as your pet's age, breed, health, and where you live. Older pets generally cost more to insure because they're more likely to need veterinary care.

How does pet insurance reimbursement actually work?

Pet insurance usually uses a reimbursement model, meaning you pay the vet bill and then your insurer sends you a portion of the costs after you meet the annual deductible. Some insurers, such as Healthy Paws and Trupanion, will pay the vet directly as long as the vet is a participating provider.

Reimbursement depends on three factors: 

• Deductible: The amount you pay before insurance pays; it varies by plan. 
• Annual limit: The maximum your insurer will pay for covered claims each year. 
• Reimbursement percentage: The percentage of eligible expenses your insurer reimburses after the deductible.

People are often surprised to discover their pet insurance doesn’t operate like health insurance, Amber Batteiger,​​ PR and communications manager for Embrace Pet Insurance, told Insurance.com.

“One of the biggest misconceptions is that pet insurance works exactly like human health insurance. Most pet insurance operates on a reimbursement model,” she said.

“Pet owners can typically visit any licensed veterinarian, pay the veterinary bill directly, and then submit a claim to their insurer. Once the claim is approved, they’re reimbursed for eligible expenses based on the deductible, reimbursement percentage, and other terms of their policy.”

What does pet insurance typically cover?

Pet insurance accident and illness plans typically cover unexpected injuries, accidents, and illnesses, depending on the policy. Routine care, such as vaccinations, heartworm prevention, and some exam fees, generally requires a wellness plan or add-on.

Pet insurance typically covers:

• Accidents
• Illnesses
• Injuries
• Diagnostic tests
• Medication
• Surgeries
• Emergency care

Eligible hereditary and congenital conditions can be covered as long as they aren't pre-existing and applicable waiting periods have passed. 

What does pet insurance not cover?

Pet insurance typically does not cover pre-existing conditions, elective or cosmetic procedures, or routine wellness care unless the policy includes wellness coverage.

Pet insurance does not cover:

• Treatment costs related to pre-existing conditions
• Elective procedures like tail docking, ear cropping, or declawing
• Breeding costs, like pregnancy and delivery
• Grooming
• Administrative costs such as waste disposal fees and taxes

What counts as a pre-existing condition?

A pre-existing condition is any medical condition your pet has shown signs of or been diagnosed with before the policy's effective date. A condition doesn't have to be formally diagnosed to be considered pre-existing. For example, a history of limping, coughing, or vomiting could affect whether a later claim for a related illness is covered.

Some insurers consider a curable condition no longer pre-existing if the pet has been symptom-free and treatment-free for a specified period, commonly 180 days. Others permanently exclude certain conditions, including some knee and ligament problems. Some policies also exclude related conditions affecting the other leg. Check the policy's definition of pre-existing conditions before enrolling. 

Enrolling your pet when it is young and healthy reduces concerns about pre-existing conditions.

What are waiting periods, and how long do they last?

Most pet insurance plans require a waiting period before coverage begins. Conditions or injuries that occur during the waiting period generally aren't eligible for coverage and may be treated as pre-existing conditions under the policy. 

Your insurer determines waiting periods, but they're typically 24 hours for accidents, 14 days for illnesses, and up to a year for orthopedic issues.

“Accident coverage usually kicks in within a few days, while illness coverage typically starts after about two weeks. Once you're past them, they never matter again,” said Kari Steere, licensed P&C insurance producer at Pawlicy Advisor. 

“However, some insurers also impose longer, condition-specific waiting periods (for things like cruciate ligament or orthopedic issues), so it’s important to understand the fine print. If you're insuring a breed that's prone to certain problems, the length of that particular problem's waiting period should factor into which policy you choose.”

Which pets benefit most from insurance?

Young, healthy pets generally benefit most from pet insurance because they are less likely to have pre-existing conditions that would be excluded from coverage and are insured well before health conditions develop with age. Insurance can also be valuable for breeds prone to expensive hereditary conditions.

For example, some dog breeds are prone to breathing problems, while certain breeds of dogs and cats have higher risks for conditions such as cancer. Getting coverage before symptoms develop can help prevent those conditions from being excluded as pre-existing.

“The best time to insure a pet is generally when they're young and healthy, before health issues have a chance to develop and become pre-existing. That doesn't mean pet insurance can't still provide value for an older pet. An older pet may have pre-existing conditions that won't be covered, but they could still develop an entirely unrelated illness or injury down the road that may be eligible for coverage. The important thing is to understand your pet's medical history and what will and won't be covered before deciding whether a policy makes sense,” Batteiger said.

But anyone who can’t afford a sudden, large vet bill can benefit from pet insurance, which can help pet owners avoid making a difficult decision, she added.

“Pet insurance can be valuable for anyone who wants some protection from a large or unexpected veterinary bill, particularly if a bill of several thousand dollars would affect the care they could pursue for their pet,” she said. “Many pet owners appreciate the peace of mind that comes with knowing they have a plan in place if their pet becomes sick or injured.”

Which pet owners benefit most from insurance?

Pet owners who couldn't comfortably afford a large emergency vet bill are often the best candidates for pet insurance. Owners with a dedicated savings account for emergency vet bills may benefit less.

An emergency vet visit averages $800-$1,500, according to insurer Lemonade, not including the cost of surgeries or complex medical situations. Pet insurance can reduce the amount you have to pay out of pocket when a covered accident or illness occurs.

However, insurance is a trade-off. Owners who value predictable monthly costs and protection from a large unexpected bill may get the most value, while owners with strong emergency savings and a healthy, low-risk pet may find self-insuring more cost-effective.

Should you insure a pet with an existing health condition?

Yes, pet insurance is still worth considering for a pet with a pre-existing condition. The existing condition won't be covered, but new, unrelated illnesses or injuries will be covered after the policy's waiting periods have passed. Some plans will cover a pre-existing condition after successful treatment and a specific period without a recurrence.

If your pet’s pre-existing condition isn’t covered by insurance, check with your vet about financing options or nonprofit assistance groups to help manage costs.

How to decide if pet insurance is worth it for you

Compare the monthly premium with your ability to cover a worst-case vet bill without financial strain to decide whether pet insurance is worth it, and consider your pet’s age, breed, life expectancy and current health.

To get the most from pet insurance:

• Ask your veterinarian about health conditions your pet's breed may be prone to.
• Compare quotes at the same deductible, reimbursement percentage, and annual limit across providers.
• Enroll your pet while they are young and healthy to avoid future pre-existing exclusions.
• Decide whether a wellness plan or an add-on is worth the extra cost for routine care.
• Weigh self-insuring (a dedicated emergency fund) against paying a monthly premium if your pet is low risk and you have savings.

Should you buy pet insurance?

Pet insurance can be worth it for owners who want protection from a large, unexpected vet bill, especially when insuring a young, healthy pet. But it's not the right choice for everyone. Pets with pre-existing conditions may have significant exclusions, while owners with enough savings to cover a major vet bill may prefer to self-insure.

Compare quotes from multiple insurers to find the best pet insurance. Use the same deductible, reimbursement percentage, and annual limit for each quote to ensure accurate comparison.