U.S. Pet Insurance Market

U.S. Pet Insurance Market:

The U.S. pet insurance market size was valued at USD 2.0 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 5.1 Billion by 2033, exhibiting a CAGR of 10.8% from 2025-2033. The market is rapidly expanding due to increasing pet ownership, rising veterinary costs, and heightened awareness of pet health. Key players are increasing focused on expanding their coverage options and utilizing digital platforms, which is contributing to the market growth. Customized plans, wellness coverage, and telehealth integration, are driving sustained growth and broader market adoption further across the country.

The U.S. pet insurance market is expanding due to increasing pet ownership and heightened awareness of pet health. As more individuals consider pets family members the demand for financial security against unexpected veterinary expenses is growing. According to industry reports, pet ownership in the U.S. has increased significantly, with 66% of households (86.9 million) owning pets in 2024. Millennials lead pet ownership at 33%, followed by Gen X at 25%. The most popular pets include dogs (65.1 million) and cats (46.5 million). Advanced veterinary care including expensive surgeries and treatments is encouraging owners to invest in insurance plans. The rise in chronic conditions, such as diabetes and arthritis, among pets also fuels the need for comprehensive coverage.

The market benefits from growing digitalization and simplified insurance processes making policies more accessible and appealing to younger demographics. Innovative offerings including wellness coverage and customizable plans cater to diverse consumer needs. For instance, in October 2024, Synchrony launched a groundbreaking payment solution that connects CareCredit and Pets Best pet insurance, thereby simplifying the payment process for pet parents. This innovative reimbursement technology allows insurance claims to be reimbursed directly to the CareCredit card, eliminating manual claims. Partnerships between insurers and veterinary clinics further boost awareness and adoption. Rising pet adoption rates post-pandemic and an increasing focus on preventative care underscore the ongoing demand for pet insurance. These factors collectively support robust market growth.

U.S. Pet Insurance Market Trends:

Rising Pet Ownership and Expenditure

The United States is experiencing a significant rise in pet ownership with more households treating pets as integral family members. This increase drives the demand for a wide range of pet-related products and services including insurance. Concurrently, pet owners are dedicating larger portions of their budgets to healthcare, nutrition, and wellness products, reflecting a strong commitment to their pets' well-being. According to industry reports, in 2024, 86.8% of dog owners reported having a regular veterinarian visit. Average veterinary costs were $214 for dogs and $138 for cats. This heightened spending on comprehensive pet care creates a favorable environment for the growth of the pet insurance market. As pets become central to family life the willingness to invest in their health and security naturally boosts the adoption and expansion of pet insurance offerings.

Product Diversification and Customization

The U.S. pet insurance market is witnessing significant expansion through enhanced product diversification and customization. Insurers are now offering a broad spectrum of flexible plans tailored to diverse needs including accident-only coverage, illness protection, and comprehensive packages that incorporate wellness and preventive care. For instance, in May 2024, Unum Group launched Unum Pet Insurance provided by Nationwide to enhance its voluntary benefits portfolio. The plans cover various pet health needs including accidents, illnesses, and wellness care. This initiative aims to meet evolving employee expectations and strengthen employer-employee engagement by acknowledging pets as integral family members. In line with this, the introduction of add-ons and riders, such as dental care, alternative therapies and coverage for hereditary conditions allows pet owners to personalize their policies based on their pets’ specific requirements. This strategic diversification not only meets varying consumer demands but also strengthens market competitiveness fostering higher adoption rates and customer satisfaction in the pet insurance sector.

Integration with the Broader Pet Care Ecosystem

Collaborations with veterinary clinics and other service providers create a seamless and comprehensive pet care experience. By partnering with trusted entities insurers can offer tailored insurance solutions directly where pet owners’ shop and seek care enhancing convenience and trust. For instance, in January 2024, Petco and Nationwide launched a co-branded pet insurance product on petco.com enabling customizable coverage for dogs, cats and exotic animals. The plan includes essential and wellness coverage options and offers discounts on Petco veterinary services. In line with this, bundling services such as combining insurance with pet wellness plans, preventive care or pet-related products provides added value and encourages holistic pet health management. This integrated approach not only simplifies the process for pet owners but also fosters loyalty and ensures pets receive consistent and high-quality care across various services.

U.S. Pet Insurance Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the U.S. pet insurance market, along with forecasts at the regional and country levels from ​2025-2033​. The market has been categorized based on policy, animal, and provider.

Analysis by Policy:

• Illnesses and Accidents
• Chronic Conditions
• Others
   

In the U.S. pet insurance market illness coverage is a fundamental policy component that addresses a wide range of medical conditions affecting pets. This coverage typically includes diagnostics, treatments, surgeries, and medications for diseases, such as cancer, infections and hereditary disorders. As veterinary medicine advances the complexity and cost of treating illnesses have risen driving pet owners to seek insurance for financial protection. Insurers offering illness coverage often provide customizable plans, allowing owners to choose deductible levels, reimbursement rates and annual limits. The increasing prevalence of chronic and serious illnesses in pets has made illness coverage a critical factor in policy selection fostering market growth and customer trust.

Accident coverage is a key segment of the U.S. pet insurance market focusing on unexpected injuries resulting from incidents like car accidents, falls or ingestion of foreign objects. This type of coverage typically includes emergency treatments, surgeries, hospitalization, and medications required to address traumatic injuries. Accident-only policies are popular among pet owners seeking affordable insurance options as they generally have lower premiums compared to comprehensive plans. The rise in active pet lifestyles and increased outdoor activities have heightened awareness of potential accidents, boosting demand for accident coverage. Insurers emphasize quick claims processing and extensive veterinary networks to attract customers making accident coverage a vital component of the pet insurance landscape.

Chronic conditions coverage addresses long-term health issues that require ongoing management and treatment, such as diabetes, arthritis, and kidney disease. In the U.S. pet insurance market policies that include chronic condition coverage offer benefits like continuous medication, regular veterinary visits and specialized therapies. These policies often feature provisions for renewing coverage despite pre-existing conditions making them highly valuable for pet owners with pets diagnosed with chronic illnesses. The aging pet population and increased diagnosis rates of chronic diseases have driven demand for such coverage. Insurers are enhancing these policies with flexible payment options and comprehensive support services ensuring sustained health management and improving the quality of life for affected pets.

Analysis by Animal:

• Dog
• Cat
• Others

Dog insurance policies typically offer comprehensive coverage for a wide range of health issues including hereditary conditions, injuries and chronic illnesses common in various breeds. Due to the diverse nature of dog breeds insurers provide customizable plans that cater to specific needs such as coverage for hip dysplasia in larger breeds or respiratory issues in brachycephalic breeds. In line with this, active and working dogs often require specialized coverage for injuries related to their activities. The higher premiums for dog insurance are balanced by the extensive coverage options, preventive care benefits and the increasing willingness of dog owners to invest in their pets' long-term health and well-being.

Cat insurance is a growing segment within the U.S. pet insurance market driven by the rising number of cat owners seeking financial protection for their feline companions. Compared to dogs cat insurance often features lower premiums due to generally fewer emergency visits and lower treatment costs. Policies are tailored to address common feline health issues such as kidney disease, hyperthyroidism and urinary tract disorders. In line with this, cat insurance plans may include coverage for routine wellness care, vaccinations and preventive treatments to ensure overall feline health. As awareness of the benefits of pet insurance spreads among cat owners insurers are expanding their offerings with flexible plans and coverage options that cater specifically to the unique needs of cats enhancing their appeal and accessibility.

Analysis by Provider:

• Public
• Private
   

In the United States the pet insurance market is predominantly dominated by private providers with limited involvement from public entities. Unlike human healthcare there is no comprehensive government-funded pet insurance program available to pet owners. Public options are scarce and typically restricted to specific scenarios such as assistance provided by animal shelters or non-profit organizations for low-income pet owners. These public initiatives generally offer limited financial support rather than full-fledged insurance coverage. As a result, most pet owners rely on private insurance companies to secure comprehensive coverage for their pets' health needs. The absence of widespread public pet insurance underscores the market's reliance on private sector innovation and competition to meet consumer demands.

Private providers are the cornerstone of the U.S. pet insurance market offering a diverse array of policies tailored to meet various pet health needs. Insurers differentiate themselves through customizable policies, flexible deductibles and varying reimbursement rates to accommodate different budgets and preferences. In line with this, private providers leverage advanced technologies like mobile apps for easy policy management and streamlined claims processing and enhancing the customer experience. The competitive landscape among private insurers fosters continuous innovation, product diversification and superior customer service, driving the growth and evolution of the pet insurance market in the U.S.

Regional Analysis:

• Northeast 
• Midwest 
• South 
• West 
   

The Northeast region of the United States is a robust market for pet insurance mainly driven by high pet ownership rates and disposable incomes. Urban areas like New York City and Boston exhibit strong demand for comprehensive coverage including preventive care and chronic condition management. Major providers, such as Nationwide and Trupanion, have a significant presence leveraging partnerships with local veterinary clinics and pet retailers. In line with this, the region's emphasis on pet wellness and advanced veterinary services fuels the adoption of customized and premium insurance plans, catering to the sophisticated needs of pet owners.

In the Midwest pet insurance growth is supported by a balanced mix of urban and rural pet owners who prioritize their pets' health and well-being. States like Illinois, Ohio and Michigan show increasing adoption rates with insurers offering affordable and flexible plans tailored to diverse lifestyles. Providers, such as Petplan and ASPCA Pet Health Insurance, are widely known for emphasizing on coverage for accidents and illnesses common in active, working and family pets. Community-focused marketing and partnerships with local veterinarians enhance trust and accessibility driving market expansion across the region.

The Southern United States presents a dynamic pet insurance market characterized by a growing number of pet owners and rising disposable incomes. States like Texas, Florida and Georgia lead in adoption rates supported by a warm climate that encourages outdoor activities and consequently, higher accident coverage demand. In line with this, regional cultural values that treat pets as family members bolster the demand for comprehensive and personalized insurance solutions.

The West region encompassing states like California, Washington and Colorado is a leading market for pet insurance mainly driven by high pet ownership and progressive attitudes toward pet health. Tech-savvy consumers in cities like Los Angeles, San Francisco and Seattle favor insurers that offer digital integration such as mobile apps and telemedicine services. Providers thrive by offering innovative customizable plans that include preventive care and wellness programs. The region's emphasis on sustainability and ethical practices also influences insurers to adopt eco-friendly policies and support environmentally conscious pet products.

Competitive Landscape:

The U.S. pet insurance market is highly competitive characterized by numerous private providers striving to differentiate through comprehensive coverage options, flexible pricing and exceptional customer service. Companies compete by offering customizable plans that cater to various pet needs including preventive care and chronic condition management. Technological advancements such as user-friendly mobile apps and streamlined claims processes are pivotal in attracting and retaining customers. Innovation is driven by the need to provide personalized services and integrate seamlessly with the broader pet care ecosystem. In line with this, strategic partnerships and a focus on digital integration enhance market positioning. For instance, in April 2024, Chubb announced its acquisition of Healthy Paws, a leading pet insurance provider from Aon plc. The deal aims to strengthen Chubb’s presence in the growing pet insurance market. The intense competition fosters continuous improvement ensuring consumers have access to a wide range of high-quality insurance solutions.

The report provides a comprehensive analysis of the competitive landscape in the U.S. pet insurance market with detailed profiles of all major companies.

Latest News and Developments:

• In September 2024, Trupanion officially launched its pet insurance product in Germany and Switzerland enhancing coverage options for local pet owners. With lifetime coverage and no breed or age restrictions, the product simplifies claims by paying veterinarians directly.
• In May 2024, Mylo launched pet insurance in the USA through a partnership with Safeco a subsidiary of Liberty Mutual. This new offering targets pet owners by providing coverage for dogs and cats featuring customizable plans, no age-related termination, and discounts for multiple pets.
• In March 2024, Independence Pet Holdings, Inc. (IPH) acquired Pets Best Insurance Services from Synchrony enhancing its pet insurance offerings. The partnership aims to leverage Synchrony’s financial expertise to expand customer access and drive innovation in the pet care sector.

U.S. Pet Insurance Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the U.S. pet insurance market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the U.S. pet insurance market.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the U.S. pet insurance industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.