U.S. Pet Insurance Market Size, Share & Industry Analysis, By Pet Type (Dogs and Cats), By Coverage (Accident & Illness and Accident Only), By Provider (Dedicated and Non-dedicated) and Regional Forecast, 2025-2032

The U.S. pet insurance market size was valued at USD 5.34 billion in 2024. The market is projected to grow from USD 6.48 billion in 2025 to USD 20.05 billion by 2032, exhibiting a CAGR of 17.5% during the forecast period. South America Region dominated the U.S. pet insurance market with a market share of 41.39% in 2024.

The U.S. has seen a considerable growth in pet ownership and with a large proportion of pet owners considering their pets as a part of their family, there has been a rise in the penetration of pet insurance as well. In 2025, around 94 million households in the U.S. owned a pet with 68 million households owning a dog and 49 million households owning a cat.

A few of the key players in the market include Trupanion, Nationwide Mutual Insurance Company, and Embrace Pet Insurance Agency, LLC (U.S.). Such players are focusing on technological development, significant investments, and strategic agreements in order to hold a significant share of the market.

Download Free sample to learn more about this report.

The total pet population (dogs and cats) in the U.S. was around 164 million with dogs accounting for 55% of the population in 2024.

U.S. Pet Insurance Market Trends

Humanization Trend is Leading to Huge Growth in Spending on Pet Care

Owners are increasingly treating their pets as family members, which is reflected in their spending on pet food, pet care and other veterinary services. The total spending on pets in the U.S. exceeded USD 150 billion in 2024. Such spending is expected to play a prominent role in adoption of pet insurance platforms.

• Around 97% of pet owners mentioned that they consider their pets as part of the family based on survey conducted by Pew Research Center in 2023.
• In the same survey, around 51% of the pet owners stated that they not only consider their pets to be a part of their family but are as much a part of their family as a human member. 

Download Free sample to learn more about this report.

U.S. households spend a considerable amount on pet food and other services. The average annual spending per household is around USD 1,740 on dogs and USD 1,311 on cats.

Download Free sample to learn more about this report.

MARKET DYNAMICS

Market Drivers

Growth in Cost of Veterinary Care to Boost Market Growth

There has been a gradual increase in the cost of visits to veterinarians and veterinary care in general. The cost of emergency care, accident and illness, surgeries and specialized treatments of pets can be substantial and having pet insurance helps owners to manage the financial burden without stress. These factors are projected to have a positive impact on the pet insurance industry in the U.S. Moreover, technological developments have helped the veterinary field offer high-cost procedures and treatments driving the cost of care even higher, resulting in U.S. pet insurance market growth.

• In 2024, the average annual spending on veterinary care was USD 580 for dog owners and USD 433 for cat owners.

Market Restraints

High Premium Costs Limit Market Growth

Various factors such as increase in veterinary costs, inflation, age of pets, etc. has led to a growth in the cost of pet insurance premiums, thereby impacting the pet insurance sector in the U.S. In addition, the more affordable policies, which provide limited coverage often come with exclusions and restrictions that can lead to significant out-of-pocket expenses for owners.

• The average monthly premium for pet insurance was $62.44 for dogs and $32.21 for cats in 2024 according to NAPHIA.

Market Opportunities

Integration of Advanced Technologies for Pet Wellness to Offer Substantial Opportunity for Market Growth

Adoption of digital health platforms, wearables, and telemedicine is opening up new possibilities before pet insurance players in the U.S. Health-tracking apps and smart collars generate real-time information of pet activity, nutrition, and vital signs that can be utilized to design customized insurance coverages and dynamic pricing strategies. Moreover, insurers can utilize AI-based analytics tools to predict risks, spot fraud, and streamline claim handling, and therefore work more productively and offer better customer care.

• In July 2025, Odie Pet Insurance announced a strategic collaboration with Nestlé Purina PetCare in order to develop and introduce pet wellness reimbursement and incentives.

Segmentation Analysis

By Pet Type

Based on pet type, the market is divided into dogs and cats.

With a larger pet population and a higher penetration of pet insurance, dogs account for a larger proportion of the U.S. market. The forecast period will see the cats segment growing at a higher growth rate with the rise in pet insurance penetration.

• In 2024, the pet insurance penetration was 7.1% for dogs as compared to only 3.1% for cats.

To know how our report can help streamline your business, Speak to Analyst

By Coverage

Based on coverage, the market is bifurcated into accident & illness and accident only.

There is a higher preference for policies that cover both accidental injuries and illnesses among pet owners due to the growing cost of veterinary care. The accident & illness segment accounts for a considerably large proportion of the U.S. pet insurance market and is projected to grow at a higher rate during the forecast period.

• In 2024, the premium amount for accident & illness policies was around 3-4 times higher than accident only policies for dogs & cats

The average monthly premium for accident & illness policies for dogs is USD 62.4, which it twice the amount for cats, which is USD 32.2.

By Provider

Based on provider, the market is segmented into dedicated and non-dedicated insurance providers.

There is a strong presence of dedicated pet insurance companies such as Trupanion, Figo, Healthy Paws and Embrace in the U.S. market. Although comprehensive coverage, customization options, and user-friendly features are offered by both dedicated and non-dedicated insurance providers, there seems to be a higher preference for dedicated companies. The dedicated providers segment accounts for a larger proportion of the U.S. pet insurance market and is projected to grow at a higher rate during the forecast period.

U.S. PET INSURANCE MARKET REGIONAL OUTLOOK

Based on region, the market is segmented into Northeast, Midwest, South and West.

South region account for roughly 39% of the 131 million households in the U.S. and the proportion of households with pets is high in some of the Southern states such as Arkansas, Mississippi, South Carolina, etc. Hence, the region accounts for the largest proportion of the pet population. The southern region accounts for a larger proportion of the U.S. pet insurance market and is projected to grow at a higher rate among all regions during the forecast period.

On the other hand, the West region is also estimated to register considerable growth during the forecast period. Extensively increasing pet ownership coupled with strategic investments by market players to have a positive impact on the market.

Similarly, in the case of the Northeast and Midwest regions, the growing prevalence of accidents and diseases amongst pets is expected to boost market growth.  

COMPETITIVE LANDSCAPE

KEY INDUSTRY PLAYERS

Trupanion, Nationwide Mutual Insurance and Embrace are the prominent players in the U.S. pet insurance market. Trupanion is a dedicated pet insurance player with policies that offer comprehensive coverage and features such as the VetDirect Pay option.

The other companies with a considerable presence in the market include Embrace Pet Insurance Agency, Health Paws Pet Insurance, and, Fetch Pet Insurance and other small & medium-sized market players. These companies are making strategic moves, such as offering of competitive pricing, focus on pet insurance promotions, and collaborations with pet clinics to expand their customer reach and the U.S. pet insurance market share.

LIST OF KEY U.S. PET INSURANCE COMPANIES PROFILED

• Trupanion (U.S.)
• Nationwide Mutual Insurance Company (U.S.)
• Embrace Pet Insurance Agency, LLC (U.S.)
• Fetch Pet Insurance (U.S.)
• Pets Best Insurance Services (U.S.)
• Healthy Paws (U.S.)
• ASPCA Pet Insurance (U.S.)

KEY INDUSTRY DEVELOPMENTS

• January 2025: Lemonade Insurance filed a request to the State of Nevada, proposing an increase in the insurance rate for a few segments and overall insurance rate increase of around 14.7% for pet insurance.
• November 2024: ManyPets, Inc., a pet insurance start-up announced its exit from the U.S. pet insurance market. The company has partnered with Odie Pet Insurance to carry-forward and renew insurance policies of the existing customers of ManyPets, Inc., from 2025.
• June 2024: Nationwide P&C Group announced the cancellation of coverage for about 100,000 animals across the country, with the nation's biggest provider of pet insurance citing the escalating cost of veterinary care in axing the product in some states.
• March 2024: Independence Pet Holdings, Inc., among the leading mutli-channel pet insurance providers, announced the acquisition of Pets Best Insurance Services, LLC from Synchrony – a leading financial service provider in the U.S.
• February 2024: Of the two-thirds (67%) of Americans who are pet owners (defined as those who currently own a cat and/or dog), 24% have pet insurance, according to a new NerdWallet survey conducted online by The Harris Poll among 1,366 pet owners.

REPORT COVERAGE

The market report provides a detailed analysis of the market. It focuses on market dynamics and key industry developments, such as mergers and acquisitions. Additionally, it includes information about the growth in pet population, increase in pet insurance penetration, and growth in pet insurance premium. Besides this, the report also offers insights into the latest industry trends and the impact of various factors on the demand for pet insurance.

To gain extensive insights into the market, Download for Customization

Report Scope & Segmentation