Pet insurance kept growing in 2025, but the mix of that growth changed. The North American Pet Health Insurance Association (NAPHIA) counted 7.6 million insured pets across the U.S. and Canada at the end of 2025, up 8.5%, after a 20.9% jump in 2024. Gross written premium grew 19.4% to $6.2 billion. When premium grows more than twice as fast as the number of pets covered, the gap is more premium per pet.
Owners see it as renewal notices that climb every year. The cause sits upstream in veterinary prices, which have outrun overall inflation since 2020. Here is what the industry data and a publicly traded insurer show, how plans are priced, and who should buy now.
Trend Signal
58/100 Steady momentum
- Emerging
- Rising
- Mainstream
- Peaking
- Cooling
Premiums up 19.4% while insured pets grew 8.5%
NAPHIA’s 2026 report counted 7.6 million insured pets in North America at the end of 2025, up 8.5%, while gross written premium rose 19.4% to $6.2 billion.
Our editorial reading of the cited data, not a forecast. How it is scored
By the numbers
- $6.2BNorth American pet insurance gross written premium in 2025, up 19.4%NAPHIA
- 7.6MPets insured in the U.S. and Canada at the end of 2025, up 8.5%NAPHIA
- +5.7%BLS veterinarian services prices, August 2026 vs August 2025BLS
- $87.44Trupanion monthly revenue per subscription pet, Q2 2026 (Q2 2025: $79.93)Trupanion
Enrollment slowed, premiums did not
NAPHIA’s 2025 report, covering 2024, described an industry in a growth spurt: premium up 20.8% to $5.2 billion and insured pets up 20.9% to 7.03 million. In the U.S. alone, 6,405,541 pets were insured, generating $4.74 billion in premium. Growth in pets and growth in dollars moved almost in lockstep.
The 2026 report, released in June 2026, broke that link. Insured pets rose 8.5% to 7.6 million, but premium rose 19.4% to $6.2 billion. Dividing premium by pets, a rough measure we calculated from NAPHIA’s totals, average premium per insured pet went from about $740 in 2024 to about $816 in 2025, roughly 10% more.
Trupanion, a publicly traded pet insurer that reports per-pet revenue, shows the same pattern. Its subscription business averaged $87.44 per pet per month in the second quarter of 2026, up from $79.93 a year earlier, while subscription pets grew 5% to 1,124,548. Total enrolled pets, including its other business segment, fell 2%. Average monthly retention held at 98.37%.
The industry’s 2025 dollar growth came mostly from more premium per pet, not from signing up many more pets.
Vet prices are the engine
Insurers price policies on expected claims, and claims follow vet bills. The BLS veterinarian services index rose from 279.335 in August 2020 to 416.184 in August 2026, a 49% increase by our calculation, against 28.9% for all items. The pace is easing, from an 8.4% annual rise in August 2023 to 5.7% in August 2026, but it has stayed well above overall inflation in each of those years.
Vet care is also the biggest single item in dog owners’ budgets. APPA’s 2026 dog report put veterinary care at 29% of dog-owner spending, ahead of food at 27%. That is the same pressure that makes insurance appealing and pushes premiums up.
| 12 months to August | Veterinarian services | All items |
|---|---|---|
| 2023 | +8.4% | +3.7% |
| 2024 | +7.6% | +2.5% |
| 2025 | +6.4% | +2.9% |
| 2026 | +5.7% | +3.4% |
What a policy covers and what moves the price
NAPHIA’s buying guide sorts plans into three types: accident-only, accident-and-illness, and wellness coverage for routine care such as vaccinations, tests and dental work, sometimes called routine or preventive cover. Anything related to a pet’s medical history before the policy started is excluded, and every policy begins with a waiting period that NAPHIA says ranges from about 10 to 30 days.
Three levers set your premium: the reimbursement level (NAPHIA says 80% is the most common, with 90% and 100% sometimes available), the deductible and any annual limit. Age matters too. NAPHIA warns that insurance will likely become more expensive as a pet ages, and some companies will not offer new insurance to pets above a certain age.
For scale, NAPHIA’s 2025 report put the average U.S. accident-and-illness premium for 2024 at $749.29 a year for dogs ($62.44 a month) and $386.47 a year for cats ($32.21 a month). Given the jump in premium per pet in 2025, treat those as a floor rather than a current quote.
- Accident-only: covers accident-related care
- Accident-and-illness: the mainstream plan; 2024 U.S. average $749.29 a year for dogs, $386.47 for cats
- Wellness: routine care such as vaccinations, tests and dental work, excluded from most plans unless wellness benefits are included
Who should buy now, and who should wait
Coverage remains unusual. NAPHIA estimated 2024 U.S. penetration at 5.46% of dogs and 2.04% of cats, so most owners still pay vet bills from savings. The choice turns on whether you could absorb a large, unplanned bill; insurance spreads that risk at a price that is rising faster than inflation.
Buying while a pet is young and healthy avoids the pre-existing exclusion NAPHIA describes and starts coverage before age-based increases. Owners of older pets should compare accident-only plans and check age limits before assuming a policy is available.
Whatever you buy, budget for renewal increases. By our calculation, Trupanion’s revenue per subscription pet rose 10.7% year over year in the first quarter of 2026 and 9.4% in the second, and NAPHIA’s totals imply about 10% more premium per insured pet in 2025. Routine care sits outside most plans unless wellness benefits are included, and much of it happens at home; APPA found 46% of dog owners own dental care products.
What to watch next
- NAPHIA’s next State of the Industry report, for whether insured-pet growth stays near 8.5% or picks up again.
- The monthly BLS veterinarian services index: a 12-month rate closer to overall inflation would ease the pressure on renewals.
- Trupanion’s quarterly revenue per subscription pet, a public proxy for how fast renewal prices are rising.
Where to start
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Pet health gear that sits outside most insurance plans
| Product type | Good fit for | Where to look |
|---|---|---|
| Pet first aid kit | Fits accident preparedness | See listings on AmazonOpens Amazon search results, not one listing: check the model on the product page. |
| Dog toothbrush and toothpaste kit | Fits routine at-home care | See listings on AmazonOpens Amazon search results, not one listing: check the model on the product page. |
| Hard-sided pet carrier | Fits trips to the vet | See listings on AmazonOpens Amazon search results, not one listing: check the model on the product page. |
Product types that fit the trend described above, not tested models. Check the exact listing before you buy. How we pick them.
Pet first aid kit
Where to look: Amazon
A kit covers the minutes between an injury and a vet visit. Check what is inside, since kits range from a few bandages to full sets with a guide.
- Supplies in one place
- Useful at home and on trips
- Not a substitute for a vet
- Contents vary widely
Dog toothbrush and toothpaste kit
Where to look: Amazon
NAPHIA says most routine care is not covered unless a plan includes wellness benefits. A brush and pet toothpaste are the at-home part of that routine.
- Low cost per use
- Routine care most plans exclude
- Needs daily or regular habit
- Some dogs need time to accept it
Hard-sided pet carrier
Where to look: Amazon
Vet visits are where the rising bills start. A sturdy carrier sized to your pet makes the trip itself easier and safer in the car.
- Rigid shell for car trips
- Easy to clean
- Bulky to store
- Sized for cats and small dogs
More: Pets trends and how the Trend Signal is scored.
Sources
- State of the Industry Report 2026 — North American Pet Health Insurance Association
- North American Pet Health Insurance Industry Market Reaches $5.2B in Written Premium — NAPHIA
- NAPHIA’s Pet Insurance Buying Guide — NAPHIA
- Veterinarian services in U.S. city average, CPI-U — Bureau of Labor Statistics
- All items in U.S. city average, CPI-U — Bureau of Labor Statistics
- Trupanion second quarter 2026 results, Exhibit 99.1 — Trupanion via SEC
- America’s Dog Owners Are Becoming Smarter Spenders — American Pet Products Association
Questions readers ask
Why is my pet insurance going up in 2026?
Vet prices keep rising faster than overall inflation: the BLS veterinarian services index rose 5.7% in the year to August 2026. Across the industry, NAPHIA data show 2025 premium growing 19.4% while insured pets grew 8.5%, which means more premium per pet.
How much does pet insurance cost on average?
NAPHIA’s most recent published averages, for 2024, put U.S. accident-and-illness premiums at $749.29 a year for dogs and $386.47 a year for cats. Premium per insured pet rose about 10% in 2025 by our calculation from NAPHIA’s totals.
How many pets have insurance?
NAPHIA counted 7.6 million insured pets in the U.S. and Canada at the end of 2025. For 2024 it estimated U.S. penetration at 5.46% of dogs and 2.04% of cats.
Does pet insurance cover pre-existing conditions or routine care?
NAPHIA’s buying guide says conditions related to a pet’s medical history before the policy started are excluded, and most routine or preventive care is not covered unless the plan includes wellness benefits.
