Key facts
- Premiums are projected to rise 17% to $6.4 billion in 2026, per Tim Zawacki of S&P Global Market Intelligence.
- About 7 million pets were insured in 2025, up 9% from 2024 and 76% from five years earlier, per NAPHIA.
- Annual veterinary spending averaged about $560 last year, according to the American Veterinary Medical Association.
- Embrace Pet Insurance said its average claim rose 6.9% in the second quarter to $432 from a year earlier.
- Trupanion said its highest individual claim has exceeded $150,000.
- Veterinarian-service prices were 4.6% higher in September 2026 than a year earlier, per Bureau of Labor Statistics data.
US pet insurance premiums are projected to rise 17% to $6.4 billion in 2026, according to Tim Zawacki, head of financial institutions research at S&P Global Market Intelligence, as the cost of veterinary care climbs. About 7 million pets, or more than 4% of US pets, were covered by insurance policies in 2025, the North American Pet Health Insurance Association said, up 9% from the previous year and 76% from five years earlier.
Veterinarian-service prices were 4.6% higher in September 2026 than a year earlier, according to Bureau of Labor Statistics data. Annual veterinary spending averaged about $560 last year, according to the American Veterinary Medical Association, while specialized cancer care, surgery, advanced diagnostics and chronic-condition management can run into thousands of dollars.
Amanda Moore, 45, of Norwalk, Ohio, said surgery, chemotherapy and radiation for her dog Tasha, diagnosed with mammary cancer, has cost about $20,500 so far. Embrace Pet Insurance reimbursed more than $14,300, she said. Embrace policies are underwritten by American Modern Insurance Group. Moore said radiation treatment was quoted at roughly $3,000 to $10,000.
Embrace said its average claim rose 6.9% in the second quarter to $432 from a year earlier and that it reimbursed policyholders $62.9 million during the quarter. Trupanion said net subscription pet additions rose nearly 40% in the second quarter from a year ago and that its highest individual claim has exceeded $150,000.
Veterinarians and insurers said rising treatment costs, along with the growing availability of advanced tests and treatments, are encouraging more owners to buy coverage. Karen Hauer, a veterinarian with more than two decades of practice, said supplies, shipping, employee healthcare and labor all cost more. "Are some owners delaying or declining treatment because of cost? Absolutely," she said.
American Veterinary Medical Association President Dr. Jen Quammen said the expanding range of care and specialists improves outcomes and helps pets live longer but also raises costs. Richard Goldstein, global chief medical officer at Zoetis, said pets are now living about 1.5 to 1.7 times longer than four decades ago, increasing demand for treatment of chronic and age-related diseases.