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27 Pet Insurance Statistics You Need to Know for 2020

More than half of all households in the United States now own at least one pet. The high cost of veterinary services can put financial strain on families and, even worse, in some cases cause the abandonment of pets. This all leads to the demand for pet insurance growing rapidly this last decade 

Pet insurance can be purchased by individuals or provided as a perk by companies. Below are statistics around pet insurance and pet ownership in the U.S.

Pet Insurance Statistics  

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Pet Ownership Statistics

  • 67% of U.S. households own a pet, or an estimated about 84.9 million homes (APPA, 2020) 
  • 95% of Americans consider their pet to be part of the family (Pet Life Today, 2020) 
  • Americans own the most freshwater fish (139.3 million), then cats (94.2 million) and dogs (89.7 million) (Insurance Information Institute, 2018) 
  • The 63.4 million U.S. households own a dog, 42.7 million households have a cat, and 11.5 million have freshwater fish (APPA, 2020)

 

Pet Expenditure Statistics

  • In 2019, $95.7 billion was spent on pet expenditures in the U.S., with pet food and treats being the top expenditure (APPA, 2020) 
  • It is estimated that the total U.S. pet industry expenditures will reach $99 billion in 2020 (APPA, 2020) 
  • Unexpected surgeries, such as cancer cruciate ligament tears, may cost $10,000 to $20,000; with an insurance policy 80% of that cost would be covered (Global Market Insights, 2018) 
  • Owners of a new pet on average spend between $3,000 and $6,000 in the first year (ABC, 2019) 
  • 85% of vets and their team members reported feeling threatened by pet owners because of the cost of the treatment (Telegraph, 2017) 

 

Pet Insurance Adoption Statistics

  • 2.82 million pets had insurance at the end of 2019 (NAPHIA, 2020) 
  • The five states with the biggest proportion of insured pets are California (19.4%), New York (9.1%), Florida (6.2%), New Jersey (5.4%), and Texas (5.1%) (NAPHIA, 2020) 
  • Dogs make up the majority of insured pets with 83%, versus cats who make up only 17% (NAPHIA, 2020)

 

Pet Insurance Industry Statistics

  • There are 20 major pet insurance companies in North America (NAPHIA, 2020) 
  • The global pet insurance market is expected to surpass $10.2 billion by 2025 (Globe Newswire, 2019) 
  • Pet health insurance has been increasing at an average growth rate of 22.1% over the past five years (NAPHIA, 2020) 
  • The total premium volume in the U.S. amounted to $1.56 billion in 2019 (NAPHIA, 2020) 
  • The in-force gross written premium for North America was $1.78 billion in 2019 (NAPHIA, 2020) 
  • 80% of pet owners reported taking their pet to the vet during the past year (Statista, 2011)

 

Pet Insurance Policy Details

  • Accident and illness insurance cover dominated the overall industry and accounted for revenue of $5.4 billion in 2018 (Global Market Insights, 2018) 
  • The accident and illness insurance premiums for dogs cost around $566.34 (Statista, 2018) 
  • The first pet insurance policy was issued in Sweden in 1890 and focused on horses and livestock (NAIC, 2019) 
  • The first vet policy in the U.S. was issued in 1982 by Veterinary Pet Insurance (VPI) to cover the dog playing Lassie on television (NAIC, 2019) 

 

Dog Ownership Costs 

  • The annual cost of owning dog is estimated to be around $1,843 (ASPCA, 2016) 
  • Cocker Spaniel, German Shepherd, and Bulldog are the breeds of dogs that have been identified to have the most health issues (Pet Life Today, 2020) 
  • Surgical vet visits for dogs cost around $621 and routine vet visits cost around $231 (Global Market Insights, 2018) 
  • Despite the growth of the pet industry, it is estimated that only 1% of all cats and dogs that are kept as pets are insured (NAIC, 2019) 
  • The most common health issue for dogs is skin allergies which can cost up to $1,100 to be treated (Pet Life Today, 2020)

 

Pets are often treated as another member of the family, and their health care is of vital importance to them and their owners. See all the pet insurance providers for more information.