PET INSURANCE BLOG

The Real Cost of Pet Insurance: What It Costs and What Drives It

Jeffrey Hanschmann

Licensed Insurance Producer, PIPA Broker

At PIPA Broker, we believe in transparency and data driven decision making. Let's explore the average costs of pet insurance for dogs and cats in 2025, what influences those premiums, and how you can make cost-effective, tailored choices for your furry family members.

• Average Pet Insurance Costs (2025)

  • The North American Pet Health Insurance Association (NAPHIA) reports a similar ballpark: dogs average $62.44/month ($749/year); cats average $32.21/month ($386/year).¹
  • MetLife data aligns closely: $60/month for dogs and $32/month for cats, noting extremes by breed, such as French Bulldogs at $92/month and Labradors at $62/month.²
  • Bankrate, drawing from 2024 NAPHIA figures, puts average A&I premiums at $56.30/month for dogs and $31.94/month for cats.³
  • NerdWallet confirms: dogs average $62/month, cats $32/month. Accident-only policies run lower at about $16/month for dogs, $9/month for cats.⁴

• What Drives Pet Insurance Premiums?

  Multiple factors shape those numbers. Here's how each one plays into your monthly cost:

  Species, Size & Breed

  • Dogs cost more to insure than cats: higher activity and injury risk.⁵
  • Breed matters: Health predispositions and physical size affect vet expenses. Larger breeds or those prone to genetic conditions, like hip dysplasia, carry higher premiums.

  Age

  Younger pets cost less to insure. As pets age, claims likelihood rises—pushing premiums upward.

  Location

  Higher regional veterinary costs = higher premiums. Urban areas or regions with cutting-edge care tend to be pricier.⁵

  Coverage Choice

  • Accident-only plans are significantly cheaper (e.g., $16/month for dogs vs. $62/month for full A&I).
  • Accident & Illness (A&I) coverage is more robust and therefore more expensive.

  Deductible, Reimbursement & Limits

  Higher deductibles = lower premiums; higher reimbursement rates and limits = higher premiums. Customizing these can shift the cost significantly.

  Health History & Pre-existing Conditions

  Pre-existing or chronic conditions lead to exclusions or higher rates, even if they aren't covered, as the presence of these are highly correlated with required vet visits in the future.

  Insurer & Discounts

  Each company underwrites differently. Bundles, multi-pet discounts, employer programs can lower rates.

• Summary Table

  Factor	Effect on Premium
  Species & Size	Dogs cost more; larger breeds higher due to health risks
  Breed	Predispositions increase cost (e.g., hip dysplasia)
  Age	Older pets cost more; younger pets are cheaper
  Location	Urban/high-cost areas = higher premiums
  Policy Type	A&I > Accident-only
  Deductible & Limits	Lower deductible/high limit = higher premium
  Pre-existing Conditions	Drives exclusions/higher cost
  Insurer & Discounts	Varied underwriting; discounts can reduce cost

• PIPA Broker's Smart Budgeting Tips

  • Start young: Insuring puppies/kittens locks in lower premium rates.
  • Compare apples to apples: Use tools like PIPA Broker to compare real-time quotes tailored by breed, age, and location.
  • Trim by choice: Accident-only saves money, but consider A&I for long-term health protection.
  • Adjust thoughtfully: Tweak deductible, reimbursement, and annual limits to balance monthly outlay and risk.
  • Bundling benefits: Check for employer or existing-insurance discounts.
  • Review annually: As your pet and their health evolve, reassess to keep coverage fair and affordable.