Is pet insurance worth it?

Insurance is a bet on a bad year. This shows the size of vet bill at which a typical accident & illness policy pays for itself, using the industry's average premium adjusted for your state.

Typical premium, in
a month · over ten years
The policy pays for itself in a year once covered vet bills reach

What a claim returns

Vet billInsurer paysNet of premium
$1,500
$5,000
$10,000

"Net of premium" is what you are ahead by in a year with that one claim. Most years have no large claim — that is the premium you pay for the years that do.

Reading the result

The average US dog owner reported about $474 a year on surgical vet visits in the APPA 2025 survey — below the break-even for most policies. But that average hides the shape of the risk: many owners pay nothing, a few pay thousands. Whether insurance is "worth it" depends on whether you could absorb a $5,000 bill without changing the treatment decision. If not, the premium buys that certainty.

The premium is NAPHIA's US average annual accident & illness premium for dogs ($836, 2025 data), multiplied by the state's services price level. Real quotes vary with the dog's age and breed and the insurer's rating; younger dogs of breeds with fewer recorded conditions quote lower. Pre-existing conditions are excluded by every insurer.

SOURCE · State of the Industry Report 2026 — highlights (2025 data) — North American Pet Health Insurance Association, 2025 data · accessed 2026-09-21
SOURCE · National Pet Owners Survey 2025 — dog spending (press release) — American Pet Products Association, 2025 data · accessed 2026-09-21
SOURCE · Regional Price Parities by State, 2024 (table SARPP) — U.S. Bureau of Economic Analysis, 2024 data · accessed 2026-09-21
UPDATED 2026-09-21 · METHOD: estimate · View methodology