Why prices differ so much (and what you can control)
Age. Premiums climb as pets get older because expected claims rise. Enrolling when they’re young tends to lock in a lower starting point.
Breed & species. Larger dogs and certain brachycephalic or hereditary-prone breeds cost more to insure due to higher expected claim severity. Cats are generally cheaper than dogs because their big-ticket injuries and ortho claims are less frequent.
Location. Veterinary fees vary by city and region; plans reflect that. Urban coastal metros usually price higher than small-city or rural markets.
Coverage type.
- Accident & Illness (A&I): the mainstream choice; covers injuries and illnesses (e.g., cancer, chronic conditions).
- Accident-Only (AO): lower premium but excludes illnesses—best thought of as a narrow safety net. A&O is cheaper for a reason.
Your plan settings. Deductible, reimbursement % (often 70–90%), and annual limit ($5k–Unlimited) are the “knobs” that move price the most—see next section.
Discounts. Multi-pet, pay-in-full, and affinity/employee discounts are common. These won’t erase risk factors, but they help.
The coverage “knobs”: how settings move your premium
Think of price as a three-way balance between deductible, reimbursement percent, and annual limit:
- Deductible. The higher it is, the lower your monthly premium. If you can comfortably handle the first $500–$750 of a big claim, you can often trim the premium meaningfully.
- Reimbursement %. Moving from 70% to 80% to 90% increases how much the plan pays—and your premium. Many pet parents settle around 80% as a balance of price and protection.
- Annual limit. A $5,000 cap can work for many routine years, but it may feel tight for complex surgeries or cancer care. $10,000 is a popular middle ground; Unlimited is the richest (and priciest) option.
A simple way to compare: get quotes for the same pet with three presets—
- Budget: higher deductible / 70% / $5k limit
- Balanced: mid deductible / 80% / $10k limit
- Premium: lower deductible / 90% / Unlimited
Review not just the price, but how much you’d owe if a $4,000 or $8,000 claim hits. (Most plans use reimbursement after deductible; you pay the vet up front and are reimbursed after the claim is approved.)
Dogs vs. cats: why the gap exists
On average, dogs cost more to insure than cats. It’s partly size and lifestyle (more ortho injuries, foreign-body surgeries, TPLO/ACL repairs), and partly the higher cost of many canine procedures. Cats tend to have fewer catastrophic injuries but can develop chronic conditions—so limits and reimbursement still matter.
For many households, the “balanced” middle setting (moderate deductible, 80% reimbursement, $10k limit) delivers a comfortable mix of affordability and protection. Your comfort with out-of-pocket risk should drive the rest.
Real-world ranges: what typical shoppers see
While the national averages above are great as a compass, shoppers commonly see quotes cluster around these illustrative ranges for a healthy, 2-year-old, spayed/neutered pet in a mid-priced metro:
- Dog, Accident & Illness
- Budget settings: roughly $30–$50/mo
- Balanced settings: roughly $45–$75/mo
- Premium settings: roughly $70–$120+/mo
- Cat, Accident & Illness
- Budget settings: roughly $15–$28/mo
- Balanced settings: roughly $25–$40/mo
- Premium settings: roughly $38–$75+/mo
These bands line up with the industry averages and independent roundups cited earlier, with room for age, breed, and city to push numbers up or down. Use them to sanity-check quotes; the policy details ultimately determine value.
Note on Accident-Only: It’s cheaper (see the averages), but it doesn’t cover illnesses, which is the driver behind many large claims. If you’re choosing AO, do it with eyes open.
Why premiums keep changing: the inflation effect
Veterinary services have experienced steady price inflation, which flows into insurance pricing over time. As of spring 2025, the BLS “pet services including veterinary” category shows ~5–6% year-over-year inflation—one reason renewals can rise even if your settings don’t change. Insurers also re-rate as new claims data comes in for your area and breed profile.
Context helps: the market itself keeps growing—7.03 million pets were insured in North America at year-end 2024, and U.S. written premiums surpassed $4.7B. More pets insured and higher claim volumes give carriers better data, but they also surface the true cost of care that policies must cover.
Picking the right level of protection (without overbuying)
Start with your “sleep at night” number. If a $5,000 surprise vet bill would derail your budget, aim for coverage that meaningfully reduces that risk—usually A&I with 80% reimbursement and at least a $10k limit.
Dial the deductible to fit your cash flow. If you’d rather keep the monthly premium down, a higher deductible is the cleanest lever with the least impact on catastrophic protection.
Mind the fine print (without getting lost in it). Focus on:
- Waiting periods (accident vs. illness vs. orthopedic)
- Pre-existing conditions language
- Bilateral and genetic/hereditary clause details
- Whether exam fees, prescription meds, and dental illness are covered
Clear, plain policy pages and sample terms are a good sign. (For general background on coverage types and exclusions, see regulator primers.)
Wellness is optional. It’s a budgeting tool for routine care, not catastrophic risk. Some households prefer to pay for wellness out of pocket and keep the core policy focused on accidents and illnesses.
Review annually. As pets age—or as premiums shift with veterinary inflation—adjust your settings. You can often change deductible, reimbursement, or limits at renewal to stay aligned with your budget.
A simple framework to decide if the cost makes sense
You’re still not sure if you should buy pet insurance. This is normal. Here is a simple way to frame your decision-making process:
1) Catastrophe check. Could you cash-flow a $4,000–$8,000 event tomorrow without deferring care? If not, insurance delivers real value even if you “lose” small dollars in a quiet year.
2) Chronic-care lens. If your breed faces higher odds of chronic issues (allergies, skin, orthopedic), richer coverage can pay for itself over time.
3) Peace-of-mind premium. Some pet parents want guardrails more than perfect ROI. If a predictable monthly payment helps you say “yes” to treatment, that’s a legitimate return on value.
Putting it all together
- Use the averages as a compass, not a conclusion. Dogs around $62/mo and cats around $32/mo (A&I) are solid baselines; Accident-Only runs much lower but excludes illnesses. Your quote will move with age, breed, city, and plan settings.
- Shape the price with the three knobs. Deductible, reimbursement, and annual limit have the biggest impact.
- Match protection to risk. For most families, a balanced A&I plan hits the sweet spot between monthly cost and the ability to handle serious care.
If you’re building a coverage “shortlist,” save one version of each quote with identical settings (deductible/reimbursement/limit) so you’re comparing apples to apples. Then adjust one lever at a time to see how the Pet Insurance cost changes—and how much you’d actually owe in a real claim. When the numbers make sense both monthly and in a worst-case scenario, you’ve found the right fit.
