Is pet insurance worth it?

Pet insurance can be an appealing option for pet owners, offering peace of mind and financial protection against unexpected veterinary bills. However, it is essential to carefully consider whether pet insurance is truly worth the expense.

Financial educator Lacey Filipich notes that pet insurance can alleviate the stress of costly veterinary treatments and prevent pet owners from falling into debt during emergencies. Despite this, pet insurance is a complex financial product, and determining its value can be challenging. According to a 2025 survey by Animal Medicines Australia, 86% of cat owners and 76% of dog owners do not have pet insurance, with common reasons being it is too expensive, lacking perceived value, and lacking awareness.

The annual premium for pet insurance varies based on the type of coverage, pet age, and breed. On average, cat owners pay about $807 per year, while dog owners pay around $1,374. Additional routine care coverage typically increases the premium by a few hundred dollars. Insurance costs also depend on factors such as the pet's age, breed, and medical history.

Some pet owners choose to self-insure, setting aside funds in a dedicated savings account for potential veterinary expenses. Others opt to self-insure after paying significant vet bills, such as $14,000 for their cat, Cyclone. While self-insurance may be viable for some, pet insurance remains an attractive option for those lacking financial flexibility.

Insurance providers continually invest in advanced veterinary technology, leading to increased costs. Additionally, premiums for older pets tend to decrease as pets age and are more likely to require medical care. Some breeds, like brachycephalic dogs, face unique health risks, making premiums even higher. However, the ease of claiming and improved coverage options can mitigate some of these drawbacks.