Vet Costs Drive U.S. Pet Insurance Growth

Rising veterinary costs and the availability of advanced treatments are driving more Americans to buy pet insurance. About 7 million pets were insured in 2025, up 9% from the year before and 76% over five years, though more than 95% of U.S. pets remain uninsured. Veterinary prices rose 4.6% year over year in September 2026, and specialized care can cost thousands of dollars. One owner’s dog cancer treatments cost about $20,500, with insurance reimbursing more than $14,300. Pet insurance premiums are projected to grow 17% to $6.4 billion in 2026, making it the fastest-growing property and casualty insurance line.