Is pet insurance worth it? This is the honest math owners should know.

Pet insurance isn't required like human health insurance typically is, but it can still be worth it for many pet owners — especially as veterinary costs rise.

Data from the American Veterinary Medical Association (AVMA) shows that veterinary care costs rose faster than inflation last year (and in every year since 2019). If a big vet bill could threaten your household's financial stability, pet insurance may be a smart way to reduce that risk and cover unexpected costs if they arise.

Still, pet insurance isn't free. The average 2025 accident-only pet insurance premium was $112 for cats and $190 for dogs, according to the North American Pet Health Insurance Association (NAPHIA). Accident-plus-illness coverage was $435 and $836, respectively. Is that investment worth it for your pet? Below, we'll detail how to run the numbers and decide.

Find out more about your pet insurance coverage options here.

The math behind pet insurance

Pet insurance isn't always worth it, but looking at a few examples can help you gauge whether it's a smart move for your household and pet. 

To start, let's consider an accident and illness policy with a $100 deductible and an 80% reimbursement rate. The frequently used formula subtracts the deductible from the vet bill and then multiples it by the reimbursement rate. Here's how the costs would look with and without that insurance for various canine veterinary services, according to CareCredit data.

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What happens if your pet needs expensive care?

As you can see in the chart above, the value of pet insurance increases the more the veterinary service costs.

Let's say your dog had to undergo colon tumor surgery with chemotherapy, which averages a cost of $8,733. Without insurance, you'd pay this entire bill out of pocket. With the insurance noted in the example above, your costs would be just $1,826.60. If your pet insurance plan cost the average $836 per year, it would have saved you thousands of dollars in this scenario. 

When pet insurance can be worth the cost

There's no way to predict if your pet will need a major procedure or treatment in the coming year, but you can think about their age, overall health, breed, and tendency to get injured or fall ill. If the risks of injury or illness are high, insurance could be a wise investment.

Another smart way to gauge whether pet insurance makes sense is to look at your finances. If a sudden hundred- or thousand-dollar bill would cause problems, make it hard to pay your bills, or empty your bank accounts, you may want to consider purchasing insurance to protect your finances.

When paying out of pocket may make more sense

On the other hand, if you have a flush savings account or the cash flow to comfortably cover a sudden (and potentially costly) bill, you can likely skip purchasing insurance or opt for an accident-only policy at a lower cost. Just note that this won't cover routine care, pre-existing conditions, or every dollar of a covered veterinary bill.

If you're still unsure if buying pet insurance makes sense for your household, talk to your veterinarian. They can help guide you toward the right move for your family.