Is Pet Insurance Worth It? The Real Costs of Vet Bills and How to Protect Your Furry Friend

A pet dog or cat is more than just a companion—they’re family. The joy, love, and emotional support pets provide are unmatched. But when your furry friend falls ill or is injured, the emotional toll can be compounded by the financial burden—especially if you don’t have pet insurance.

Veterinary care can be expensive, with costs varying based on your pet’s age, breed, size, health, and the nature of the illness or injury. While pet insurance policies can help cover these expenses, it’s important to understand how pet insurance works, what it covers, and whether it’s worth the investment.

Pet Insurance Explained. How Does It Work?

Pet insurance helps cover the cost of medical care for household animals—primarily cats and dogs. To get coverage, you choose a policy and pay a monthly or annual premium. According to the 2024 State of the Industry Report by the North American Pet Health Insurance Association (NAPHIA), 5.7 million pets in the U.S. were insured as of the end of 2023—and that number continues to grow.

Traditionally, pet insurance works on a reimbursement model: you pay the vet bill upfront and then file a claim to get reimbursed. However, some insurers now offer direct-to-vet payment, meaning they pay the veterinary clinic directly—helping reduce your out-of-pocket expenses at the time of treatment.

Is Pet Insurance Worth It?

Medical treatments for pets can be surprisingly expensive. Whether it’s a broken bone, ingestion of a foreign object, or cancer treatment, vet bills can easily reach thousands of dollars. Pet insurance can ease this financial burden by covering most of the costs, depending on your policy.

Let’s look at an example:

• Annual premium: $700
• Total paid over 3 years: $2,100
• Vet emergency: Your dog swallows a toy. Total vet bill: $4,000
• Your policy: 90% reimbursement, $500 deductible

Your out-of-pocket cost = $500 (deductible) + 10% of remaining $3,500 ($350) = $850

Without insurance, you would pay the full $4,000. In this scenario, pet insurance saves you $3,150—making it well worth the investment.

According to veterinarians, 1 in 3 pets requires emergency treatment every year, and 4 out of 5 pets will face an emergency in their lifetime. These unexpected events are difficult to plan for, making pet insurance a valuable safety net.

What Is Covered In Pet Insurance

Most comprehensive pet insurance plans cover:

• Illnesses: Gastrointestinal problems, skin allergies, glaucoma, etc.
• Accidents: Broken bones, bite wounds, ingestion of foreign objects
• Chronic conditions: Arthritis, diabetes, heart disease
• Hereditary and congenital conditions: Hip dysplasia, hyperthyroidism
• Dental illness: Tooth resorption, gingivitis, periodontal disease
• Cancer treatment: Diagnosis, medications, and surgeries
• Surgeries: Cruciate ligament repair, cataracts, bloat
• Diagnostics: Blood tests, x-rays, MRIs, allergy testing
• Medications: Prescription drugs for treatment and recovery
• Emergency visits and exam fees

Some plans also offer optional add-ons for:

• Behavioral therapy
• Alternative treatments (e.g., acupuncture, chiropractic care)
• Lost pet advertising and reward costs
• Vacation cancellation due to pet emergencies
• Breeding and pregnancy-related expenses
• End-of-life care, euthanasia, cremation or burial

What Pet Insurance Doesn’t Cover

Most pet insurance policies do not cover:

• Pre-existing conditions
• Cosmetic procedures
• Routine wellness care or check-ups
• Preventive care (e.g., flea/tick treatment)
• Vaccinations
• Elective procedures (e.g., ear cropping, tail docking)
• Spay/neuter (unless covered under a wellness add-on)
• Daycare or boarding
• Pet food, toys, and treats
• Personal liability (e.g., damage caused by your pet)

Should You Get Pet Insurance?

You should consider pet insurance if:

• You have a young, healthy pet
• You want protection from unexpected large vet bills
• You don’t have enough savings to cover an emergency
• You value peace of mind

You might skip pet insurance if:

• Your pet is already senior or has pre-existing conditions
• You have significant savings and can self-insure
• You’re willing to take the financial risk of out-of-pocket costs

Final Thoughts

Pet insurance offers financial protection and peace of mind in the event of an emergency. While it may not cover everything, and you may never need to file a claim, the coverage can be invaluable when facing high-cost treatments. Like any insurance, it’s about preparing for the unexpected.

We love our pets and admire the beauty of animals in general—from our household companions to the creatures captured in stunning animals and wildlife photography. That love is one reason we go the extra mile to keep them safe and healthy.

If you decide to purchase pet insurance, be sure to:

• Compare policies across multiple providers
• Read the fine print for exclusions and reimbursement limits
• Choose coverage that fits your budget and your pet’s needs

In most cases, pet insurance is worth it—especially when you consider the rising cost of veterinary care and how much your pet means to you.