Pet insurance ownership remains low in the United States
Roughly 2 to 3 percent of pet owners in the United States carry pet insurance. That means the vast majority of the estimated 67 million pet-owning households have no coverage at all. The percentage has grown over the past decade, but adoption remains far slower than it has in countries like Sweden and the United Kingdom, where penetration rates exceed 20 percent.
The low adoption rate reflects several real barriers: monthly premiums, waiting periods before coverage begins, and the fact that many pet owners do not know the product exists or assume it costs far more than it does. Some owners also prefer to set aside money themselves rather than pay a monthly bill, or they own older pets that most insurers will not cover.
The number of insured pets has grown steadily, but from a very small base. Industry reports suggest somewhere between 3 and 4 million pets in the United States currently have active policies, though exact figures vary depending on which companies report their numbers and which do not.
Key Takeaways
- Approximately 2 to 3 percent of American pet owners have insurance, meaning the vast majority of pets are uninsured.
- The number of insured pets has grown over the past decade but remains far lower than in Western Europe, where adoption rates exceed 20 percent.
- Cost, lack of awareness, and waiting periods are the main reasons pet owners do not purchase coverage.
- Older pets and those with pre-existing conditions face difficulty finding insurers willing to cover them at any price.
Why adoption rates differ by region and country
Pet insurance took root earlier and spread faster in the United Kingdom and Scandinavia than in North America. In Sweden, roughly 40 percent of dog owners carry insurance. In the UK, the figure hovers around 25 percent. The difference stems partly from how veterinary care is funded: in those countries, pet owners have long paid out of pocket for routine and emergency care, so insurance became a natural financial tool earlier.
In the United States, many pet owners have historically treated veterinary expenses as a cash cost they absorb as needed, rather than as a risk to insure against. That mindset is changing slowly, particularly among younger pet owners and those who have experienced a major veterinary emergency. But the shift has not yet reached the scale seen in Europe.
Which types of pets are most commonly insured
Dogs and cats account for the overwhelming majority of insured pets. Dogs are insured at slightly higher rates than cats, partly because dog owners tend to have higher average incomes and partly because dogs are more likely to suffer injuries that require emergency care.
Exotic pets — rabbits, birds, reptiles, and small rodents — are rarely insured. Most pet insurance companies do not offer coverage for them at all, and those that do charge premiums that make the product impractical for animals that cost less to replace than to insure.
How pet insurance penetration has grown over time
The pet insurance market in the United States was nearly nonexistent 20 years ago. The first policies appeared in the 1980s, but remained a niche product through the 2000s. Growth accelerated in the 2010s as more companies entered the market, premiums became more transparent, and awareness spread through online channels.
Even so, the growth has been gradual. The market roughly doubled between 2015 and 2023, but from such a low starting point that the overall penetration rate remains in the low single digits. Industry projections suggest continued growth, but most analysts do not expect U.S. adoption rates to approach European levels within the next decade.
Why most pet owners remain uninsured
Cost is the most commonly cited reason. Monthly premiums for a dog typically range from $30 to $60, depending on age, breed, and the deductible chosen. For a cat, premiums are usually lower. Many pet owners view that as an unnecessary monthly expense when they could instead set aside money themselves.
Lack of awareness is the second major barrier. Pet insurance is not advertised as heavily as human health insurance, and many people do not realize it exists or assume it is far more expensive than it actually is. Veterinarians mention it inconsistently, and pet stores do not stock it the way they do food and toys.
A third barrier is the structure of the product itself. Most policies include waiting periods — often 14 days for accidents and 30 days for illness — before coverage begins. Some owners find this frustrating or do not want to wait. Additionally, pre-existing conditions are never covered, which eliminates the product for any pet that has already been diagnosed with a health issue.
The gap between pet owners who want insurance and those who buy it
Surveys consistently show that a much larger percentage of pet owners — often 20 to 30 percent — say they would consider buying pet insurance if they knew more about it or if it cost less. That gap between interest and actual purchase suggests that awareness campaigns and lower premiums could shift adoption rates upward.
However, the gap also reflects the fact that many pet owners do not prioritize the purchase even when they are aware of it. They may intend to buy a policy but never follow through, or they may decide the monthly cost is not worth it once they see the actual premium. This is a common pattern with optional insurance products across all categories.
Frequently Asked Questions
Is pet insurance worth buying if so few people have it?
The number of people who own something does not determine whether it is worth owning. Pet insurance is worth considering if you cannot afford a $2,000 to $10,000 emergency veterinary bill out of pocket, or if you want to may support your pet receives the most expensive treatment options regardless of cost. The low adoption rate mainly reflects that many owners prefer to self-insure or have not thought about the product.
Why is pet insurance so much less common than human health insurance?
Human health insurance is often subsidized by employers and required by law in many situations. Pet insurance is purely optional and comes entirely out of pocket. Additionally, human health insurance has been marketed and normalized for decades, while pet insurance is still relatively new in the United States. The product itself is also more straightforward — pet owners can choose to skip it without legal consequence.
Are older pets less likely to be insured?
Yes. Most insurers do not cover pre-existing conditions, and many have age limits for new policies — some will not insure pets over 10 or 12 years old. This means older pets are effectively uninsurable, which contributes to the overall low penetration rate. Owners of older pets often decide to self-insure instead.
Do pet insurance rates vary by location?
Yes. Premiums depend partly on your zip code, because veterinary costs vary by region. Urban areas and coastal states typically have higher premiums than rural areas. Some companies also adjust rates based on local claims history.