Pet insurance costs rise 68% as only 6% of cats covered

Veterinary costs climbed 68 percent in a decade, yet only 6 percent of US cats and 25 percent of dogs carry pet insurance.

"Everybody should consider a policy," Karen Dock Halligan, a veterinarian and author, said. "Could you handle a $10,000 vet bill right now?"

Dock Halligan advises evaluating insurers on AM Best ratings, state licensing, company track record, pre-existing condition exclusions, lifetime payout limits, and whether any vet can be used. She recommends accident and catastrophic coverage over routine-visit plans, noting that younger, healthier pets are better candidates because pre-existing conditions are typically excluded.

The financial stakes are significant: a single treatment for meningeal granulomatous encephalomyelitis, a canine neurological disease, can reach $20,000. With only 6 percent of cats and about 25 percent of dogs insured, most pet owners remain exposed to unexpected veterinary bills that can strain household budgets.

Dock Halligan said pet owners should research policies before signing, comparing coverage details rather than just monthly premiums. She noted that some insurers specialize in older animals, and that policies vary on whether any veterinarian can be used. She also suggested asking other pet owners for recommendations and checking whether employers offer pet insurance as a workplace benefit.

The veterinarian said she has seen cases where pet insurance made the difference between treating a serious condition and financial euthanasia. "I've had to do financial euthanasia," she said. "And you don't want to be in that situation."

She also advised pet owners to consider their pet's age and health status. A 15-year-old cat with a heart murmur, arthritis, and kidney disease is unlikely to benefit from a new policy, while a young, healthy dog is a better candidate. "Think about it early before you need the insurance," she said.

For older pets, Dock Halligan noted that some companies specialize in covering senior animals, though premiums typically rise as pets age. She emphasized that the decision should not rest on monthly cost alone but on whether the policy provides adequate coverage for the pet's specific needs and breed.

Companies like Trupanion, which provides medical insurance for cats and dogs, operate in a market where penetration remains low. The decision to purchase pet insurance comes down to individual risk tolerance and pet health status. Pet owners considering coverage should evaluate policies early, before their pets develop conditions that would be excluded as pre-existing.

This article is for informational purposes only and does not constitute professional advice.