Should I get pet insurance?
Calculate whether pet insurance is worth the cost based on your pet's breed, age, and the probability of expensive vet bills.
By ShouldICalc Team
Updated January 2025 · See our methodology
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Trade-offs to Consider
Every decision has pros and cons. Here's what to weigh:
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Money
Pet insurance costs $300-1,500/year. Average dog vet cost is $400-700/year. Insurance mainly protects against major emergencies ($3,000-15,000+). Most people pay more in premiums than they receive in claims.
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Time
Insurance claims require paperwork. But peace of mind means less stress during pet emergencies.
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Quality
Insurance enables expensive treatments you might otherwise skip. Some pets get better care because owners can afford it with insurance.
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Convenience
You still pay upfront, then get reimbursed. This isn't like human insurance where the provider bills directly.
Related Products
Products that can help you save money. (Affiliate links)
Pet First Aid Kit
Handle minor issues without vet visit
Pet Health Records Organizer
Track vet visits and expenses
As an Amazon Associate, we earn from qualifying purchases at no extra cost to you.
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Frequently Asked Questions
Do most pet owners come out ahead with pet insurance?
What does pet insurance NOT cover?
When is pet insurance most valuable?
Should I just save the premium money instead?
Is Pet Insurance Worth the Money?
Pet insurance is a gamble—like all insurance. Here’s how to calculate whether it makes sense for your pet and financial situation.
The Average Pet Owner’s Math
Typical costs:
| Pet | Annual Insurance | Avg Annual Vet Cost | Lifetime Insurance | Lifetime Vet (no major issues) |
|---|---|---|---|---|
| Dog | $500-700 | $400-700 | $6,000-10,000 | $5,000-10,000 |
| Cat | $300-500 | $200-400 | $4,000-7,000 | $3,000-6,000 |
For the average pet without major health issues: You’ll likely pay more in insurance than you’d spend at the vet.
But that’s not the whole story.
The Catastrophic Protection Value
Where insurance pays off:
| Emergency | Cost | With Insurance (80% reimburse, $250 deductible) | Your Cost |
|---|---|---|---|
| ACL surgery | $4,000 | $3,000 reimbursed | $1,000 |
| Cancer treatment | $8,000 | $6,200 reimbursed | $1,800 |
| Foreign body surgery | $3,500 | $2,600 reimbursed | $900 |
| Poison treatment | $2,500 | $1,800 reimbursed | $700 |
| Hit by car | $6,000 | $4,600 reimbursed | $1,400 |
Without insurance, these costs are fully out-of-pocket.
The Probability Question
How likely is a major vet expense?
| Issue | Probability Over Pet’s Life | Average Cost |
|---|---|---|
| ACL tear (dogs) | 15-20% | $3,000-5,000 |
| Cancer | 25% (dogs), 30% (cats) | $5,000-15,000 |
| Foreign body surgery | 10-15% | $2,000-5,000 |
| Chronic condition | 20-30% | $500-2,000/year |
| Emergency (any) | 50-70% | $500-5,000+ |
Expected value calculation:
If there’s a 20% chance of a $5,000 bill: Expected cost = 0.20 × $5,000 = $1,000
If you’re paying $600/year for insurance: Insurance covers this scenario better IF you’d face it.
Break-Even Analysis
How much would you need to claim to break even?
$50/month premium × 12 = $600/year $250 deductible 80% reimbursement
Break-even claims = (Premium + Deductible) ÷ Reimbursement Rate
Break-even claims = ($600 + $250) ÷ 0.80 = $1,063You need $1,063 in covered vet bills annually to break even.
Over a dog’s 12-year life: Total premiums: $7,200 Total deductibles (if claiming each year): $3,000 Need $12,750 in claims to break even.
Breed-Specific Considerations
High-risk breeds (consider insurance strongly):
| Breed | Common Issues | Avg Lifetime Extra Costs |
|---|---|---|
| French Bulldog | BOAS, spine, allergies | $3,000-8,000 |
| German Shepherd | Hip dysplasia, GI issues | $2,000-6,000 |
| Labrador | ACL, cancer, obesity | $2,000-5,000 |
| Golden Retriever | Cancer, hip, heart | $3,000-8,000 |
| Cavalier King Charles | Heart disease | $3,000-10,000 |
| Pug | BOAS, eye issues, spine | $2,000-6,000 |
Lower-risk (insurance less critical):
- Mixed breeds (hybrid vigor)
- Healthy purebred lines
- Cats (generally lower costs than dogs)
Age Considerations
Best time to get pet insurance:
| Age | Premium Level | Pre-existing Exclusions | Recommendation |
|---|---|---|---|
| Puppy/kitten | Lowest | None yet | Best time to buy |
| 1-4 years | Low | Anything diagnosed | Good value |
| 5-8 years | Medium | More likely | Depends on health |
| 8+ years | High | Many conditions | Often not worth starting |
Key insight: Once your pet has a condition, it becomes a “pre-existing condition” and is never covered. Buying insurance young locks in coverage before issues arise.
The Self-Insurance Alternative
Instead of insurance, save the premium:
$50/month saved at 5% interest:
| Years | Saved | With Interest |
|---|---|---|
| 1 | $600 | $615 |
| 3 | $1,800 | $1,940 |
| 5 | $3,000 | $3,400 |
| 10 | $6,000 | $7,760 |
Self-insurance works IF:
- You actually save the money (not spend it)
- Your pet stays healthy while the fund builds
- You can emotionally handle big bills
- You could pay $10k+ from savings if needed
Self-insurance fails IF:
- Major issue happens early (fund hasn’t built)
- You’re not disciplined about saving
- You’d decline treatment due to cost
What Pet Insurance Doesn’t Cover
Common exclusions to understand:
- Pre-existing conditions - Anything diagnosed before coverage starts (biggest exclusion)
- Routine/wellness care - Vaccines, checkups, dental cleaning (unless wellness add-on)
- Dental disease - Many policies exclude
- Bilateral conditions - If one knee had ACL issue, other knee may be excluded
- Hereditary/congenital - Some policies limit or exclude
- Breeding-related - Pregnancy, birth complications
- Behavior issues - Training, anxiety treatment often excluded
Read the policy. Exclusions vary significantly between insurers.
Making the Decision
Get pet insurance if:
- ☑️ You have a puppy/kitten (no pre-existing yet)
- ☑️ Your breed has known health issues
- ☑️ You couldn’t handle a $5,000-10,000 emergency bill
- ☑️ You want to say “yes” to any treatment option
- ☑️ Peace of mind matters to you
Skip pet insurance if:
- ☑️ Your pet is older with existing conditions (won’t be covered anyway)
- ☑️ You have substantial emergency savings ($10,000+)
- ☑️ You’d be disciplined about saving the premium
- ☑️ You have a low-risk mixed breed
- ☑️ You’re comfortable with “nature takes its course” approach to major issues
If You Decide to Get Insurance
Tips for maximizing value:
- Buy young - Before any conditions develop
- Higher deductible, lower premium - If you have emergency fund
- Read exclusions carefully - Know what’s not covered
- Consider accident-only - Cheaper, covers emergencies only
- Check reimbursement basis - “Actual cost” vs “benefit schedule”
Good insurers to compare:
- Embrace
- Healthy Paws
- Trupanion
- Nationwide
- ASPCA
Get quotes from 3-4 before deciding.
The Bottom Line
Pet insurance is not about “coming out ahead.”
It’s about:
- Protection against catastrophic costs
- Peace of mind in emergencies
- Ability to choose best treatment regardless of cost
- Not having to euthanize for financial reasons
For most pet owners: Insurance makes sense for young, breed-prone pets or anyone who couldn’t absorb a $5,000+ unexpected bill.
For some pet owners: Self-insurance (dedicated savings) works if you’re disciplined and financially stable.
The “right” answer depends on your pet, your finances, and your emotional relationship with risk.
About This Calculator
Premium estimates based on pet insurance industry averages. Vet cost data from AVMA and pet expense surveys. Claim probabilities vary by breed, location, and individual pet. Insurance policies vary significantly—always read your specific policy terms. Last updated January 2025.