Pet Insurance Adoption Is Growing. So Why Are Most U.S. Pets Still Uninsured?

Ask almost any pet parent how much they love their dog or cat, and you’ll probably get an answer involving the words “family,” “everything,” or “I’d do anything for them.” We buy them birthday presents, rearrange our vacations around them, and somehow end up sleeping on six inches of mattress while a 12-pound dog occupies the rest. Yet when it comes to protecting their health, there’s a surprising disconnect. Pet insurance adoption is growing across the country, but more than 95% of American dogs and cats still don’t have coverage.

So what’s holding pet parents back? The answer is more complicated than you might think, and understanding it could help families make better decisions about their pets’ healthcare in 2027.

We Love Our Pets. The Insurance Numbers Tell Another Story.

According to the North American Pet Health Insurance Association (NAPHIA), approximately 6.98 million pets were insured in the United States at the end of 2025, an increase of 9% over the previous year. Across North America, that number reached 7.6 million.

Those are encouraging figures, especially for an industry that’s still relatively young in the United States. But here’s the surprising part: Only about 6% of American dogs and 2.3% of cats have insurance.

That means millions of devoted pet parents are navigating veterinary expenses without the financial protection a policy might provide.

The reasons range from tight household budgets to confusion about how insurance works. And sometimes, the explanation is as simple as having a healthy pet and assuming things will stay that way.

The “My Pet Is Healthy” Trap

It’s easy to understand why insurance doesn’t feel urgent when your dog is happily chasing squirrels or your cat is sprawled across a sunny windowsill.

After all, why pay a monthly premium when nothing is wrong?

The trouble is that pets have a remarkable talent for developing expensive problems without consulting the family budget first. A torn knee ligament, swallowed toy, urinary blockage, or unexpected illness can turn an ordinary Tuesday into a veterinary emergency.

And while younger pets are generally less likely to develop certain age-related conditions, they’re hardly immune to accidents or illness.

Unfortunately, waiting until something happens can make insurance less useful. Most policies exclude pre-existing conditions, meaning an illness or injury that develops before coverage begins may never qualify for reimbursement under that policy.

For pet parents considering coverage, the healthiest years may actually be the most important time to explore their options.

The Monthly Premium Problem

Of course, there’s another reason pet insurance adoption hasn’t reached more households: Money.

According to NAPHIA’s 2026 industry report, the average accident-and-illness policy in the United States cost approximately $70 per month for dogs and $36 for cats in 2025.

For a family juggling groceries, housing, utilities, and other expenses, another monthly bill can feel difficult to justify.

And that’s a perfectly reasonable concern. Insurance needs to fit the household budget, and paying premiums doesn’t guarantee that a pet will ever need expensive treatment.

But there’s another way to think about the expense.

Imagine receiving a $5,000 veterinary estimate tomorrow. Would paying that bill require dipping into emergency savings, using a credit card, or postponing other important expenses?

For some families, setting aside money every month may be the better solution. For others, an insurance policy could make a major veterinary expense more manageable. Many pet parents may benefit from combining both approaches.

The important thing is to have a plan before the veterinarian hands you an estimate.

Pet Insurance Can Be Confusing

If you’ve ever tried comparing insurance policies, you know how quickly the details can become overwhelming.

Deductibles. Reimbursement percentages. Annual limits. Waiting periods. Exclusions. Wellness benefits.

Suddenly, something that sounded straightforward requires a little homework.

Two policies with similar monthly premiums may offer very different coverage. One might reimburse eligible examination fees while another excludes them. Some plans cover certain hereditary conditions, rehabilitation, or prescription medications, while others impose restrictions.

Then there’s the reimbursement process itself. With many policies, pet parents pay the veterinary bill first and submit a claim afterward.

It’s understandable that some people simply give up before making a decision.

Fortunately, comparing plans becomes easier when you focus on a few essentials: What does the policy cover? What does it exclude? How much would you pay out of pocket? And what happens if your pet develops an expensive condition?

A little research now can prevent some unpleasant surprises later.

Cats Are Getting Left Behind

Perhaps the most interesting part of the pet insurance story involves cats.

While approximately 6% of American dogs are insured, coverage among cats remains much lower.

One possible explanation is the belief that indoor cats don’t face the same risks as dogs. They aren’t running through dog parks, chasing cars, or eating mysterious objects discovered during neighborhood walks.

But indoor living doesn’t protect cats from kidney disease, diabetes, dental problems, urinary conditions, or cancer.

Cats can also be remarkably good at hiding discomfort. By the time a pet parent notices something is wrong, the condition may already require significant veterinary attention.

As more families recognize the healthcare needs of indoor cats, feline coverage could become an important driver of pet insurance adoption in 2027.

When Veterinary Care Becomes a Financial Decision

Behind all these statistics is something far more personal.

Imagine sitting in a veterinary exam room, listening as the veterinarian explains that your beloved pet needs treatment. You want to say yes immediately. But first, you need to know the price.

For many pet parents, that conversation is painfully familiar.

A 2025 PetSmart Charities-Gallup study found that 52% of surveyed U.S. pet parents had skipped or declined needed veterinary care. Among those who had forgone care, 71% cited financial considerations.

Those findings reveal just how often veterinary decisions become financial decisions.

Pet insurance won’t eliminate every difficult choice. Policies have limits, exclusions, deductibles, and costs of their own. But appropriate coverage may give families more flexibility when an eligible medical expense arrives unexpectedly.

And that flexibility can matter enormously when the patient happens to be your best friend.

Could 2027 Bring More Insured Pets?

There are reasons to believe pet insurance adoption could continue growing.

More employers are offering pet insurance as a voluntary benefit. Veterinary medicine continues to provide sophisticated treatments that can carry substantial costs. And pet parents have more opportunities to research and compare policies before enrolling.

Still, greater awareness won’t automatically translate into higher enrollment. Affordability, clear policy language, and consumer confidence will remain important.

For pet parents who haven’t explored insurance recently, 2027 could be a good time to revisit the question.

A Little Planning Can Make a Big Difference

Nobody brings home a puppy or kitten imagining future veterinary bills. We’re too busy choosing names, buying toys, and wondering how something so small can create so much chaos.

But caring for a pet means preparing for the unexpected, too.

Whether that preparation involves insurance, dedicated savings, or a combination of both, the goal is the same: Giving your pet the best possible chance at getting the care they need.

If you’re curious about your options, compare free quotes from leading pet insurance providers and see what coverage might fit your pet’s needs and your family’s budget.

Resources

• North American Pet Health Insurance Association: 2026 State of the Industry Data

• NAPHIA: 2026 State of the Industry Report Highlights

• American Veterinary Medical Association: U.S. Pet Ownership Statistics

• PetSmart Charities and Gallup: 52% of U.S. Pet Parents Have Skipped or Declined Recommended Veterinary Care

• National Association of Insurance Commissioners: Understanding Pet Insurance