Higher Vet Bills Drive More Americans to Insure Their Pets

Advanced treatments and higher prices are prompting owners to seek coverage for pets

Rising veterinary bills are giving insurance companies a boost. As the cost of animal care climbs and treatment options increasingly resemble human medicine, more Americans are enrolling in pet insurance to help cover expenses, Reuters reports. Industry data show that about 7 million pets—slightly more than 4% of U.S. cats and dogs—were insured, a 76% increase over five years. Premiums are projected to reach $6.4 billion, up 17%, making pet coverage one of the fastest-growing areas in insurance.

The average pet owner spends about $560 a year on vet care, but advanced cancer treatment, surgery, and care for chronic illnesses can cost tens of thousands of dollars. Veterinarians point to higher prices for supplies, labor, and more specialized services, while insurers say claims have climbed above $150,000 as pets live longer and owners face tougher financial decisions. NerdWallet advises buying coverage as early as possible, even for younger animals, partly because of how pet insurance treats preexisting conditions. Vice also examines how pet owners decide where to draw the financial line for veterinary care. For more comparisons of insurance options for pets, see the linked guides.