By Lewis Nibbelin, Research Writer, Triple-I
Pet ownership in the United States has steadily grown in recent decades, climbing to 95 million households with at least one pet in 2025, according to the American Pet Products Association (APPA). Alongside the rise in ownership, the APPA projects $165 billion being spent on pet care in 2026 alone, continuing a trend of rising pet industry expenditures since 2018.
But from unexpected veterinary costs to greater liability concerns, pet companionship introduces a range of new risks. Triple-I’s latest Issues Brief identifies steps pet owners can take to keep their pets safe and healthy, which a growing market of property/casualty and specialty insurers are helping facilitate through pet insurance.
Reported and tracked as its own business line as of 2024, the pet insurance market has expanded by more than 10 percent every year since 2018, based on Triple-I analysis of S&P Global Market Intelligence data. Direct premiums written last year also hit a record high at $5.47 billion, with most of the largest insurers experiencing double-digit premium growth in 2025.
Despite growth, however, the North American Pet Health Insurance Association reported that fewer than 4 percent of pets are insured, suggesting many pet owners remain unaware of available coverage options or of the long-term value these protections can ensure.
Meeting individual pet needs
While policies vary, pet insurance typically covers only accidents (encompassing injuries, such as broken bones) or both accidents and illnesses (such as infections and cancer). Many insurance plans include hereditary and congenital condition coverage for policies in force. Plans are priced based on risk factors like age, gender, and breed.
Though most pet insurers exclude pre-existing health conditions from coverage, some will no longer assess a condition as preexisting if the condition is curable and the pet is symptom-free for some period, typically ranging from 180 to 365 days. Separate pet wellness plans can also cover preventive health care, including vaccinations and annual exams.
Unlike property/casualty coverages, most pet insurance policies work on a reimbursement basis, meaning policyholders must pay up front for services and then submit a claim to their insurer. Only once claims are submitted can the insurer pay for some or all of the service by reimbursing the policyholder.
Beyond alleviating the immediate burden of veterinary prices – which can amount to tens of thousands of dollars over a pet’s lifetime, according to the American Veterinary Medical Association – insurance can help owners keep their pets healthy longer, mitigating greater costs as the pet ages.
As coverage options continue to expand, pet insurance has evolved into a more flexible and comprehensive product, making it important for pet owners to compare policies carefully and understand how coverage, reimbursement, and exclusions work. Reviewing these options with an insurance professional can help pet owners decide what works best for their unique pet.
Learn More:
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Dog-Related Injury Claims on the Rise in 2025
Spotlight on: Dog Bite Liability