Is pet insurance worth it in 2026?

The average pet household spends $1,700 on its four-legged loved one, according to the American Veterinary Medical Association (AVMA), about $200 more than in the previous two years.

Pet insurance can cover expenses associated with injuries and diseases like diabetes or cancer, as well as routine costs like vaccinations, physicals and spaying or neutering. But only 4% of pets are covered by insurance, according to the AVMA.

Pet insurance doesn't cover every situation: Older animals may be rejected, and if your pet has a pre-existing condition, you'll have to pay out of pocket.

The price of pet insurance has shot up, too. Premiums for accident-and-illness policies for dogs climbed from 27%, from 49% in 2019 to $62 per month in 2024, the most recent year for which information from the North American Pet Health Insurance Association (NAPHIA) is available. (For cats, the $32-a-month average in 2024 was a 10% uptick from 2019.)

So, does a pet insurance policy make sense for your family?

A pet insurance policy will pay for qualifying medical treatments for your dog, cat, bird or other household companion. Historically, owners have paid out of pocket at the vet's office and later filed a claim for reimbursement.

A growing number of companies are setting up direct payment, though, so the bill goes straight to the provider and you don't have to get reimbursed.

How much you'll pay depends on:

Your deductible: The amount you have to pay before your insurance company contributes anything. The limits are usually annual, though some policies have per-incident or lifetime deductibles for certain conditions. Many providers allow you to choose your deductible, and the higher you make it, the lower your monthly premiums will be.

Spot, one of our top picks for pet insurance, offers five annual deductible options: $100, $250, $500, $750 and $1,000.

Your reimbursement rate: How much you'll be paid back after you meet your deductible. Typically, providers reimburse 70%, 80% or 90% of the cost of treatment. Figo is a standout, offering 100% reimbursement.

Your annual coverage limit: The cap on how much you can be reimbursed in a 12-month period. Pets Best is among the few providers that offer unlimited coverage.

Coverage varies by provider, but there are three basic types of pet insurance:

Accident-only plans are bare-bones policies that cover emergencies like broken bones, bites, swallowed objects, and traumatic dental fractures. Diseases, parasites and cruciate ligament injuries are not covered.

Accident-and-illness plans cover accidents as well as diseases like cancer and diabetes and hereditary conditions like hip dysplasia and glaucoma. An accident-and-illness plan may also cover medications, prescription food, treatments for behavioral issues and alternative treatments like acupuncture.

Wellness plans cover routine anticipated costs for checkups, vaccinations, microchipping, teeth cleaning, spaying/neutering and more. Typically, wellness plans are add-ons that must be bought with an accident-and-illness policy.

While most pet insurance companies don't cover pre-existing conditions, some will cover those that have been cured (with no symptoms or treatment for a certain number of years).

AKC Pet Insurance is the only provider we've found that covers pre-existing conditions that haven't been resolved, including diabetes, arthritis and hip and elbow dysplasia. Coverage begins after you've had your policy for 365 days.

Elective procedures, grooming and costs relating to breeding, pregnancy or birth are typically excluded from pet insurance policies. While most plans don't cover euthanasia or funeral expenses, both Pets Best and Embrace include them in certain accident-and-injury policies.

Many carriers won't insure animals past a certain age or limit what kind of policies they can be approved for. There are also pet insurance companies with no age limits, however.

Pet insurance premiums vary greatly based on the kind of animal, its breed, size, gender and age — as well as the type of coverage you're getting and where you live.

According to NAPHIA, the average cost of pet insurance for dogs in 2024 was about $16 per month for an accident-only policy and $62 per month for an accident-and-illness policy.

For cats, the average accident-only policy cost $9 per month and the average accident-and-illness policy ran $32 per month.

Pet insurance can be worth it if paying for an unexpected injury or illness would break the bank, and you feel the alternative is not an option. Getting a policy makes the most sense if your pet is still young and healthy:

Like life insurance, pet policies are cheaper before age-related illnesses and decline emerge. Most providers accept animals as young as seven or eight weeks old. Conversely, you may find it hard to get coverage if you have a senior pet.

Depending on your budget, you can get an inexpensive accident-only policy, just in case your furry friend swallows something or gets bitten. For broader protection, an accident-and-illness policy will cover a variety of conditions.

Wellness plans are rarely offered on their own, but coverage for routine care and exams can help ensure your pet has more active, healthy years.

Ultimately, whether pet insurance is the right move for you depends on your needs, your budget and the health of your pet.

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