Keeping pets happy and healthy is a priority for pet owners. Navigating companion animals’ health issues is not always easy and can be expensive if something serious crops up. People may wonder if pet insurance is an effective way to defray some of the costs and achieve peace of mind.

Pet insurance is something that many rely on when they bring a new pet into a home. According to the North American Pet Health Insurance Association, there was a 12.7 percent increase in the total number of insured pets from 2023 to 2024. Here is a look at what pet insurance may cover and how to decide if it is right for you.

What is pet insurance?

Progressive Insurance says pet insurance can reimburse a person for eligible vet bills if a pet has an accident or gets sick. Most pet insurers limit plans to cats and dogs, but some may consider other pets or exotic animals. Pet insurance plans vary, but typically include the following:

Accident-and-illness: These plans cover treatment for accidents and various illnesses, such as infections, arthritis, diabetes, and hereditary diseases.

Accident-only: These plans only cover injuries sustained in accidents, including broken bones or consumption of foreign objects.

Wellness: Wellness plans reimburse owners for preventive and routine care, and usually are add-on options to other plans. They may offer reimbursement for flea and tick treatments or dental cleanings.

How does pet insurance work?

Once pet owners choose a company, they will pay a monthly premium. When the pet visits the vet, the pet insurance will cover some of the cost. This typically requires a person to pay the veterinarian out-of-pocket and then submit a claim for reimbursement afterwards. Some insurers will pay the vet directly. Coverage and cost are determined by the deductible, reimbursement rate and annual limit chosen.

What doesn’t pet insurance cover?

Pet insurance typically does not cover preexisting conditions, pet pregnancies and non-vet related costs like grooming and boarding. Additional restrictions may apply depending on the policy.

What are the average premium costs?

The NAPHIA reported that, in 2024, the average monthly accident and illness pet insurance premium was $62.44 for dogs and $32.21 for cats. For accident-only coverage, the average monthly premium was $16.10 for dogs and $9.17 for cats.

Is pet insurance worth it?

Many people find that pet insurance is a worthwhile investment. It can offset some of the costs of vaccines and examinations, and will make more expensive diagnostics and treatments more affordable.