Pet Insurance Basics for Your Vet Clients

Pet insurance is on the rise in North America, but many pet owners still do not have coverage for their pets. According to the North American Pet Health Insurance Association’s 2025 State of the Industry Report, the number of insured pets in the U.S. rose 12.7% from 2023 to 2024.

Some 7.03 million pets are insured across North America,¹ but the total represents only a fraction of the estimated 180 million pets (163.6 million in the U.S.2; 17.2 million in Canada³).

This pet insurance coverage gap provides an opening for veterinarians and their practices to highlight the key role insurance can play to help improve not just health outcomes but the quality of life for pets.

Here are some facts and statistics about pet owners’ attitudes toward the cost and benefits of veterinary care, designed to help educate clients about pet insurance during National Pet Insurance Month in September and throughout the year.

Cost of Veterinary Care

According to a PetSmart Charities–Gallup State of Pet Care study, 52% of pet owners surveyed in the United States have either missed or turned down necessary veterinary care. For those who skipped care, 71% said they couldn’t afford it or that they didn’t consider it worth the expense.4

Here are some other key facts about the cost of vet care:

• According to Synchrony’s 2025 Pet Lifetime of Care Study, the cost of care can quickly add up over time. For dogs, the 15-year cost of pet care spans $22,125 to $60,602. For cats, it’s $20,073 to $47,106. However, pet owners greatly underestimate the lifetime cost, with dog owners estimating it to be $8,158 and cat owners $5,735.⁵
• Fewer than 1 in 4 pet owners have saved for or purchased insurance for pet emergencies.⁵
• Even among those pet owners earning $90,000 or more a year, about 1 in 3 (33%) said they decided against care because of the cost.⁴
• However, the research also showed that 14% of pet owners who missed out on care saw their animals get sicker or pass away, and almost 30% say they have a friend or relative whose pet succumbed to their injuries or illness because they were unable to provide care for them. ⁴

Takeaway: The cost of coverage can play a major role in pet care decisions, and some owners may skip care completely because of it, which may add more urgency for veterinary practices to educate clients about the range of care options for their pets.

Pet Owner Perceptions

The majority of pet owners have faith in their veterinary practices. Fewer than 1 in 10 (7%) of pet owners have turned down care because they don’t believe in the judgment or motives of their veterinarian.⁴

However, cost can be a potential barrier to care:

• The main obstacle to obtaining veterinary care is cost, with 26% of cat, dog and mixed pet owners and 51% of small companion animal owners surveyed saying that an unexpected expense of $250 or less would cause financial stress.⁵
• Nearly 2 in 3 pet owners (65%) surveyed would only be able to afford a bill of $1,000 or less to provide life-saving treatment to their pet.⁴
• Some 83% of pet owners who have ever gone to a veterinary practice say the cost of the care is justified.⁴
• Nearly 3 in 4 (73%) of those who turned down care due to cost report that their veterinarians did not counsel them about more affordable treatments, and just 23% remember being told about payment plans.⁴

Takeaway: Pet owners may want to get the best care for their animals, but the major barrier is cost, making it even more important for veterinary practices to provide a range of treatment and veterinary payment options.

Pet Insurance Statistics

• The annual cost of pet insurance can vary, depending on multiple factors, including the type of animal, age and breed.⁶
• In 2024, the average annual pet insurance premium in the U.S. for dogs costs $749.29 to cover accidents and illnesses and $193.29 for accidents only.¹
• For cats, a policy for accidents and illnesses in the U.S. costs on average $386.47 and one just for accidents costs $110.03.¹
• Policies that include wellness components typically cost more, with average annual premiums of $1,321.33 for dogs and $651.30 for cats.¹
• The most common claims for dogs in North America in 2024 included gastrointestinal issues (such as diarrhea and vomiting), ear infections and various skin conditions (including infections, allergies and dermatitis).¹
• For cats, the leading claims in North America in 2024 included gastrointestinal problems, urinary tract/kidney/bladder issues and ear infections.¹
• Wellness coverage can help pet owners manage regular preventive care expenses.⁷ They may also help reduce out-of-pocket costs and support overall pet health.

Takeaway: Encouraging clients to explore pet insurance options that range from accident-only to full-coverage policies, including wellness add-ons, can help pet owners manage both routine and unexpected veterinary expenses.

Combining Insurance and Financing

While pet insurance can provide valuable financial support for veterinary care, it may not cover 100% of the cost. Veterinary financing solutions can help pet owners handle remaining out-of-pocket expenses.⁸

Many pet insurance plans operate on a reimbursement model, which means pet parents typically pay for care at the time of service and then submit a claim for reimbursement. This can create an upfront payment burden, especially when unexpected expenses arise. Financing options like the CareCredit credit card can help bridge that gap by allowing clients to pay for eligible veterinary services and repay over time while waiting for insurance reimbursement.

To make this process even easier, CareCredit has developed an integrated reimbursement solution with participating pet insurance partners, including Pets Best, Figo Pet Insurance, Pumpkin Pet Insurance and Embrace Pet Insurance.

Here’s how the integrated reimbursement process can work:

1. The client pays the practice with their CareCredit credit card.
2. The client submits a claim to a participating insurer and elects CareCredit as the reimbursement destination for eligible expenses.**
3. Once the claim is processed, any approved reimbursement is credited directly to the client’s CareCredit account.
4. The client remains responsible for any balance not covered by insurance, which may be repaid over time through CareCredit financing for qualifying purchases.

By connecting insurance reimbursement with CareCredit, veterinary teams can help make the financial side of care easier for clients to navigate, reducing friction between paying for treatment today and receiving reimbursement later.

Noteworthy: Pumpkin pet insurance also provides a dedicated team to support veterinary professionals, along with resources designed to help simplify insurance conversations.

Technology is also streamlining payment and reimbursement workflows. By bringing insurance and financing information together, some solutions can help practices and clients manage the cost of care more easily. Clarus, for example, provides a single view of cost-of-care resources, including the CareCredit credit card and insurance details, along with actionable insights throughout the pet’s health journey.

Helping Clients Navigate Cost and Coverage

As pet owners explore ways to balance the cost of care with their desire to provide the best for their animals, tools like pet insurance and financing options may play an increasingly important role. By starting conversations with clients about the value of insurance and flexible payment solutions, veterinary teams have an opportunity to support pet owners in making care more accessible and sustainable, helping strengthen the bond between people and their pets.

A Veterinary Financing Solution for Your Clinic

Looking for a way to help your clients prepare for the cost of their pets’ care? Consider accepting the CareCredit health and pet care credit card. CareCredit is a financing solution that allows cardholders to pay for services over time, while you get paid within two business days.

When you accept CareCredit, you receive a custom link that allows clients to see if they prequalify with no impact to their credit score. Those who apply, if approved, can take advantage of financing on qualifying purchases.* The entire process is fast and friendly, leaving you free to focus on providing the care pets need.

Learn how the CareCredit credit card can help your clients finance veterinary care, or start the provider enrollment process by filling out this form.

Author Bio

Robert DiGiacomo is a Philadelphia-based writer and editor. He has written for publications and outlets including AAA World, The Washington Post, The Globe and Mail, USA TODAY, Forbes, The Philadelphia Inquirer, The Pennsylvania Gazette, Fodor’s, MSNBC, CNN and more.

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