Is Pet Insurance Worth the Cost? The Real Numbers Owners Should Consider

Pet insurance is not mandatory the way human health insurance often is, but for many pet owners it can still be a worthwhile purchase, especially as veterinary prices continue to climb.

According to data from the American Veterinary Medical Association (AVMA), veterinary care costs rose faster than inflation last year, continuing a trend seen every year since 2019. If a large vet bill could put your household's finances at risk, pet insurance may help reduce that exposure and soften the blow of surprise expenses.

Of course, coverage comes at a price. The North American Pet Health Insurance Association (NAPHIA) says the average 2025 accident-only premium was $112 for cats and $190 for dogs. Accident-and-illness plans averaged $435 for cats and $836 for dogs. Whether that cost is justified depends on your pet and your budget, and the calculations below can help.

How the numbers work

Pet insurance is not always the best fit, but a few examples can make it easier to judge whether it makes sense for your home and your pet.

For example, assume an accident-and-illness policy with a $100 deductible and an 80% reimbursement rate. The standard calculation subtracts the deductible from the vet bill and then applies the reimbursement percentage. Using CareCredit data, here's how some common canine services compare with and without insurance.

What if your pet needs costly treatment?

The chart shows that the more expensive the veterinary service, the more valuable pet insurance can become.

Consider a dog that needs colon tumor surgery with chemotherapy, a treatment that averages $8,733. Without insurance, that entire amount would come out of pocket. Under the policy used in the example above, your share would be $1,826.60. If the plan itself costs the average $836 a year, it could save you thousands in a situation like this.

When pet insurance may be a good idea

There is no way to know in advance whether your pet will need major treatment in the near future, but factors such as age, overall health, breed, and injury or illness risk can offer clues. If those risks are higher, insurance may be a sensible move.

Your finances matter too. If an unexpected bill of a few hundred or a few thousand dollars would strain your budget, make it hard to keep up with other expenses, or drain your savings, insurance could help protect your household.

When paying yourself may be better

On the other hand, if you have strong savings or enough cash flow to handle an unexpected bill comfortably, you may be able to skip insurance altogether or choose a cheaper accident-only plan. Keep in mind that these policies do not cover routine care, pre-existing conditions, or every dollar of an eligible vet bill.

If you are still unsure whether pet insurance is right for your household, speak with your veterinarian. They can help you think through the best option for your family.