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Why more people are buying pet insurance

Veterinarian Petting Scruffy Dog
A pet insurance policy can help combat rising veterinary costs. Getty Images

With nagging inflation, higher costs for food and products and higher interest rates, many Americans are looking for additional ways to protect their wallet. This can take the form of refinancing existing debt, diversifying investments or even looking for additional work opportunities.

It can also include adding insurance protections where they otherwise may have not existed. For dog and cat owners, pet insurance is at the top of the list. In exchange for a monthly fee to a provider (often discounted if paid annually) owners can have their pet or pets covered for a wide array of ailments, visits and emergencies. 

Because of the unique benefits a pet insurance policy provides, the field has grown significantly in recent years. Between 2018 and 2021 the pet insurance industry more than doubled, according to the North American Pet Health Insurance Association (NAPHIA). Overall the sector exceeded $2.83 billion by the end of 2021.

If you're thinking about joining the millions of owners who currently insure their pets then start by getting a free price quote so you know exactly what to expect.

Why more people are buying pet insurance

Here are two major reasons why more owners are getting pet insurance.

Rising costs

Grocery shopping isn't the only thing that costs more than it did in recent years. Veterinary costs have also increased dramatically. "Prices for vet services have jumped 10% in the past year, government data shows — the biggest such spike on records dating back two decades," The Associated Press reported in October. 

Fortunately, pet insurance can alleviate much of this new financial burden by covering pets for a wide array of trips to the vet. And it doesn't need to be expensive either. Owners can typically expect to pay between $30 to $70 monthly for dogs and $15 to $40 for cats

Compared to the thousands of dollars it typically costs to raise and take care of a pet, pet insurance is a valuable alternative to having to pay cash for every visit. By choosing a pet insurance policy that works for you you can get reimbursed after your pet's been treated - putting some much-needed money back in your wallet.

You can get a free pet insurance quote from pet insurer Spot in 30 seconds.

More pets

There was a spike in pet ownership in recent years due to the pandemic and a dramatic increase in work-from-home arrangements. This led to a reevaluation of how pets are cared for - and how that care is paid for. 

Many have since turned to pet insurance to help out. 

"The societal and behavioral changes we are experiencing around our relationships with pets have contributed greatly to an unprecedented period of growth for our industry," said Kristen Lynch, Executive Director of NAPHIA. "A record number of household pet adoptions and purchases during the pandemic, combined with continued work-from-home arrangements, and pet owners' desire to mitigate unexpected veterinary costs have contributed to even higher growth rates in the past several years."

"In 2020, 45% of households owned dogs, up from 38% at year-end 2016," the American Veterinary Medical Association (AVMA) recently noted. "The population of pet dogs was estimated to be between 83.7 million and 88.9 million," in 2020, the association claimed. 

All of those animals will need care at a reasonable cost - both things a pet insurance policy can easily provide.

The bottom line

In recent years pet ownership has skyrocketed and the price tag for veterinary care and services has jumped. Fortunately, pet insurance has also grown, providing owners with a wide array of policies and services to choose from.

So, if you're the owner of a new dog or cat - or simply could use the support a pet insurance policy provides - it makes sense to get moving. You can get a customized price quote online now or you can explore some top pet insurance providers on the market by using the table below.

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