How pet insurance works
Pet insurance helps pay veterinary bills for dogs, cats and, with some insurers, other animals. Most policies work on a reimbursement basis: you pay the vet, submit a claim and the insurer reimburses a percentage of eligible costs after your deductible, up to the policy limit. Some insurers can pay participating veterinarians directly. Pet insurance is growing quickly: the North American Pet Health Insurance Association (NAPHIA) reported a record 7.03 million insured pets in North America at the end of 2024, about 91 percent of them in the US. Pet insurance does not cover your liability if your dog injures someone; that is usually handled by the liability part of a homeowners or renters policy.
Types of coverage
- Accident-only plans cover injuries such as fractures, bite wounds, swallowed objects and poisoning. They cost the least but do not cover illness.
- Accident and illness plans add conditions such as infections, cancer, diabetes, allergies and digestive problems, and usually diagnostics, surgery, hospitalization and prescriptions. Some also cover dental disease, behavioral therapy, alternative treatments or telehealth.
- Wellness or routine care add-ons, as described by the Insurance Information Institute (Triple-I), reimburse preventive care such as exams, vaccinations, flea and heartworm prevention. They are budgeting tools rather than insurance against large losses.
The three numbers that shape your policy
Most accident-and-illness plans let you choose a deductible (annual or per condition), a reimbursement percentage of eligible costs, and an annual limit, sometimes with unlimited options. A lower deductible, higher reimbursement and higher limit mean a higher premium. Per-condition or lifetime caps can leave you exposed for chronic illnesses, so compare them carefully.
What is excluded
Pre-existing conditions are generally excluded. Triple-I notes that some insurers stop treating a curable condition as pre-existing if the pet has been symptom-free for a period, typically 180 to 365 days. Policies usually also exclude cosmetic procedures, breeding and pregnancy costs, and illnesses that begin during the initial waiting period. Some exclude or limit hereditary and congenital conditions, specific orthopedic problems, or dental care beyond accidents.
Regulation and state rules
Pet insurance is regulated as property and casualty insurance by the states. In 2022 the National Association of Insurance Commissioners (NAIC) adopted a Pet Insurance Model Act that defines pre-existing conditions, requires clear disclosure of exclusions, waiting periods and limits, and puts the burden on the insurer to prove that a pre-existing condition exclusion applies. Each state decides whether and how to adopt it, so protections differ by state.
What drives the price
Premiums depend on species, breed, age, where you live (veterinary costs vary widely by area), the plan type and the deductible, reimbursement and limit you choose. Premiums typically rise as pets age, and some insurers set maximum enrollment ages. Multi-pet discounts are common.
How to choose and how claims work
Enroll while your pet is young and healthy, before conditions appear in its records. Compare how each plan handles exam fees, hereditary conditions and chronic illness renewals, and read the sample policy. Ask how the insurer treats bilateral conditions, such as a problem that affects both knees, and whether premiums rise automatically with age. Try our pet insurance calculator to compare deductible and reimbursement options. To file a claim, submit an itemized invoice and, when requested, medical records. The insurer may review the pet's history before paying the first claim, so keep records complete.
Polis Re helps you compare pet insurance plans for dogs and cats and request quotes in one place. Policies are issued by licensed insurers and placed through licensed producers in your state.
