Pet Insurance: Options and Coverage Explained

Written by Kendall K. Morgan
Medically Reviewed by Amy Flowers, DVM on March 11, 2025
8 min read

It's insurance that helps you pay for medical care your pet needs. Depending on your plan, it may cover vet care your pet needs to stay well. It also may help you pay for vet care if your pet gets sick or hurt. 

 “Pet insurance has become increasingly popular in recent years, with more pet owners considering it to provide financial support in case of unexpected accidents or illnesses,” says Keith Chamberlain, chief value officer for the American Animal Hospital Association based in Lakewood, Colorado. 

It works a lot like your health insurance. When you get sick or hurt, your health insurance helps you cover the cost of care you need. Your health insurance likely also covers preventive care to keep you well, including regular checkups and vaccines. The details depend on your specific insurance plan. But the goal is to keep you well without having unexpected high costs from tests, procedures, or treatments you can’t afford. Pet insurance is health insurance, but for your pets.

If your pet needs emergency scans or surgery, it could easily cost you thousands of dollars at your regular or emergency vet. Pet insurance helps protect you financially in case your pet needs unexpected and costly care. It also may make it easier to access timely vet care to keep your pet well, or get them needed treatment. But it’s up to you whether or not you want pet insurance.

You pay a premium each month. When your pet needs care covered by pet insurance, you file a claim to help you pay for it. Details depend on your pet insurance company and the plan you choose. It’s important to understand your pet insurance policy, including what it covers and what it doesn’t.

Most of the time, pet insurance doesn’t cover vet costs up front. You’ll likely have to pay the bill and then submit a claim to get reimbursed. Here’s how it usually works:

  • You go to an accredited vet for care. You pay the bill that day. Make sure you have receipts and records detailing the care your pet received.
  • You submit a claim to your pet insurance company, electronically or by mail. Be sure you include the records and receipts you need.
  • If your pet insurance company approves the claim, they reimburse you through a check or direct deposit. The amount you get back depends on your coverage, deductible, copay, and other things.

Pet insurance coverage varies, depending on the plan you choose. Check a policy's details to know what it does and doesn't pay for. Vet care that's often covered by pet insurance includes:

Accident or injury. Your pet insurance may cover some or all costs if your pet needs care related to an accident or injury, such as cuts, broken bones, poisoning, or swallowed objects.

Illness. Pet insurance can help if your pet has an infectious illness or health condition. Keep in mind that preexisting conditions generally aren’t covered.

Medical testing. Your plan may cover tests needed to figure out what’s wrong when your pet is sick, such as imaging, blood, or other tests.

Surgery. Your plan may help cover costs if your pet needs surgery.

Medicine. It may help pay for medicine your pet needs, whether temporary or long-term.

Hospital care. Your pet insurance may help cover costs if your pet needs to stay at the vet overnight.

Hereditary or congenital conditions. Insurance may help with certain hereditary conditions or conditions your pet is at risk for, based on their breed. You need to enroll in pet insurance before your pet has a health problem.

Other needed care. Some pet insurance plans may also cover these types of vet care:

  • Wellness care
  • Dental care
  • Behavioral therapy
  • Alternative treatments, such as acupuncture
  • Cancer treatment

Most pet insurance policies cover dogs. Some breeds have more risk of having certain health conditions. Your plan's costs may depend on your dog's breed. Small, mixed-breed dogs typically have the lowest pet insurance costs.

Purebred dogs often have higher insurance premiums. That’s because they may have more risk of getting certain genetic diseases or health conditions. Large dogs have higher premiums because their care tends to cost more.

Ask your vet for advice about what type of coverage they recommend based on your dog’s age, breed, and health. Keep in mind your pet insurance policy generally won’t cover conditions your pet had before you signed up for pet insurance.

In 2023, the average cost of pet insurance for dogs in the U.S. was about $675 per year, or $56 per month, including accidents and illness. The cost for accident-only pet insurance was about $200 per year, or $17 per month. The cost of pet insurance goes up as your dog gets older.

Pet insurance for cats is about the same as it is for dogs. Fewer people have pet insurance for cats, compared to dogs. Consider your cat's health risks to decide what kind of coverage you want for them. Some purebred cat breeds have higher risks. Siamese cats, for example, are more likely to get chronic lower airway disease. Outdoor cats have more risk of injury or illness.

Pet insurance for cats is cheaper than it is for dogs. In 2023, the average insurance premium for cats in the U.S. was about $383 per year, or $32 per month, for accidents and illness. Accident-only coverage was $116 per year, or about $10 per month. Insurance for your cat goes up as they age.

You may want to think about pet insurance for your exotic pets. They include:

  • Birds
  • Rabbits
  • Mini pigs or goats
  • Lizards or other reptiles
  • Frogs or other amphibians
  • Guinea pigs
  • Rats or hamsters
  • Ferrets 
  • Sugar gliders

Exotic pet insurance won’t cover species that are:

  • Venomous or poisonous
  • Endangered or threatened
  • Illegal to own
  • Kept on display or in large numbers

You may not be able to get pet insurance for an exotic if you need a permit, license, or registration to have it. 

The cost of pet insurance for exotic animals varies, depending on what type of animal you have and your coverage. Not all pet insurance companies offer coverage for exotic animals. Monthly premiums for an exotic pet insurance plan may start at  $20 per month.

It can be costly to have a pet, including vet care. 

“The cost of delivering quality pet care for emergencies and illness has been rising, as veterinary hospitals are susceptible to the same market pressures that have driven price increases across all segments of the economy,” Chamberlain says. 

The rising price of vet care is also due to more advanced treatment becoming available. While many pet owners say they’d pay thousands of dollars to save their pet’s life, there may not be extra money in your budget to cover unexpected vet bills. 

Consider the potential benefits of pet insurance, including:

  • Protecting you from unexpected or high veterinary expenses
  • Giving you access to better or more advanced care by helping with costs
  • Allowing you to choose the care you want for your pet without worrying as much about the cost 
  • Making it easier to get care for your pet when they need it, without first having to save up
  • Making it easier to follow your veterinarian’s advice or treatment plan
  • Allowing your pet to live a healthier or longer life by helping you afford basic and emergency vet care

While pet insurance can be helpful and help give you peace of mind, it isn’t required. Most pets don't have pet insurance. Like any form of insurance, it won’t always save you money. But it may give you financial protection if something happens to your pet.

Ultimately, nobody can answer the question for you about whether pet insurance is worth it. The answer will depend on many things, including your preferences, your pet’s health risks and needs, and how hard it'd be for you to pay unexpected vet bills.

The best pet insurance for you depends on what you want. It also depends on your pet and the type of coverage they need. Things that may affect your choice include:

  • Your pet’s species and breed
  • How much treatment costs for common conditions your pet is likely to get
  • Any health risks your pet has based on their breed, habits, or other things
  • Your pet’s preexisting conditions, which won’t be covered
  • Costs of wellness care
  • Whether the plan has a waiting period before coverage kicks in
  • Where you live and how that affects costs

The American Veterinary Medical Association (AVMA) supports pet insurance, sometimes called pet health insurance. They don’t endorse any specific company or plan. They say pet insurance should:

  • Require you to have a vet for your pet
  • Allow you to choose your vet
  • Be approved by the insurance regulatory agency in your state
  • Follow ethical standards for veterinary medicine and the pet health insurance industry
  • Use licensed veterinarians to help with claims
  • Offer clear information about coverage, pricing, policy limits, and optional coverage
  • Give you information about your costs, including premiums, copays, deductibles, and exclusions
  • Give you clear information about how to submit claims for reimbursement, including how long reimbursement should take

To help you choose the best pet insurance for you, try these tips:

  • Think through what’s most important to you in a pet insurance plan.
  • Explore pet insurance policies to find those that are the best fit based on what’s important to you.
  • Request a quote from multiple companies to compare their costs and coverage.
  • Ask your vet for their advice.
  • Read your pet insurance policy carefully to make sure you know what’s covered.

Pet insurance is health coverage for your pets, including dogs, cats, or exotic pets. It can help you cover costs of accidents, illness, or wellness care, depending on your plan and coverage. The best pet insurance for you and your pet depends on many things, including your preferences, budget, pet type and breed, and your pet’s health risks.

How much is pet insurance?

It varies. Your cost depends on where you live, your pet’s species and breed, as well as their health risks and age. Your cost also depends on the plan you choose and its details, including deductibles. Some pet insurance companies have discounts if you enroll more than one pet.

What pet insurance covers preexisting conditions?

It typically won’t cover health conditions your pet had before you got insurance, or any that come up during a waiting period. In some cases, it may cover conditions your pet already has if they’re curable. 

How do vets feel about pet insurance?

Ask your vet what they think. The AVMA endorses pet insurance as a concept. They note it can help with the costs of veterinary care. It also makes it easier for people to get their pets the recommended care.

Does pet insurance cover surgery?

It often covers surgery for accidents or illness, but it depends on what type of plan and coverage you have. Check details of your policy to see whether it covers surgery.

How much of a vet bill does pet insurance cover?

This depends on many things. For example, your reimbursement depends on what care is covered under your plan and whether you’ve paid the deductible. There may be limits on your coverage. Different plans may cover 70%, 80%, or 90% of your vet costs.

Does pet insurance cover spaying or neutering?

Maybe, but not usually. That’s because it's elective surgery. If you need help paying for your pet to be spayed or neutered, ask your vet about options. Local animal shelters or humane societies may know where to find a low-cost clinic, or how to get a voucher to lower your cost.