Rescues and Pet Insurance: A Winning Combination

Jeffrey Hanschmann

Licensed Insurance Producer, PIPA Broker

The Growing Trend of Shelter and Rescue Adoption

In 2024, there were roughly 4.19 million cat and dog adoptions from U.S. shelters throughout the United States.¹ That's a lot of happy pets! In general, about 94 million households, or 71% of U.S. households, own some sort of pet (bird, cat, dog, horse, fish, reptile, or other small animal) as of 2025.² The U.S. as a nation has had a remarkable history of pet ownership throughout the years, shifting from breeder preferences to more recently shelter/rescue adoptions, varying by type of pet, and fluctuating during pre- and post-pandemic times.

The numbers paint an interesting picture regarding how Americans have acquired their pets historically. For dogs, 34% are purchased from breeders, while 23% come from shelters. The situation is flipped for cats, as 31% are adopted from shelters while just 3% are purchased from breeders.

There are some serious concerns with pet ownership through unethical breeders and/or puppy mills, such as:

Puppy mills have cruel and unsanitary living conditions.
Chronic health issues from poor breeding operations are linked to mill-bred puppies which can mean higher vet bills, lifelong medical care or shortened life expectancy.
When buyers purchase puppies from mills or pet stores that source from mills it creates a cycle of economic demand keeping the industry alive.
The above may contribute to overpopulation and shelter strain where millions of cats and dogs enter shelters while too few homes are available.

A Generational Shift Toward Responsible Adoption

But the tides are shifting. According to some studies, age has played a crucial role in adoption behavior and younger generations seem to be choosing a safer, more ethical alternative. According to Petscare,³ 75% of Gen Z and Millennial Americans show a strong preference for shelter adoption, compared to 55% of Gen X and Boomers do. This shift from generation to generation may suggest a promising and sustainable future for shelter adoptions. A few of the advantages of adopting from a rescue or shelter are:

You save a life by providing a home to a pet that otherwise might be euthanized or remain in overcrowded conditions.
You reduce the demand for puppy mills.
Supporting animal welfare organizations via their adoption fees help cover vaccinations and spaying/neutering.

The Challenge: Financial Planning After Adoption

However, shelters don't provide much or any options in the form of pet insurance and financial education, and the obstacles of adopting via shelters/rescue remain to be:

Financial considerations related to ongoing pet care costs
Housing restrictions that may limit pet ownership
Breed preferences and availability
Post-pandemic return to work affecting time and attention
Risk of unexpected vet and pet care costs that can strain budgets

Pet Relinquishment: A Financial Story

Although most (60%) of dogs and cats enter a shelter as strays, roughly 30% are surrendered pets, those whose owners can no longer care for them due to unforeseen barriers.⁴ Of that 30% surrendered, 75% of them are due to human circumstances, not because of anything the pet did wrong.

And while not all surrendered pets are given up due to financial reasons, multiple surveys and analyses show that financial constraints are consistently among the top reasons. A recent analysis reported that between 7-10% of dogs and cats were relinquished due specifically to the owner's financial situation.^5,6 And while the rising cost of owning pets is common and a real reason for considering surrendering a pet, folks should know their options and understand that this is an addressable issue through the benefits of pet insurance.

The Pet Insurance Gap

Roughly 4% of dogs and 1% of cats in North America are insured, basically indicating that a very small minority of pets actually have any type of insurance coverage whatsoever.⁷ What this means is that over 90% of pet owners do not have pet insurance, even though veterinary costs continue to rise and are a significant part of overall pet costs.

Many pet owners can expect to spend roughly $300 to $1,500 per year (depending on whether you own a dog or a cat) just on routine veterinary care such as exams, vaccines, and preventative treatments. Include the facts that the median emergency savings for Americans is $600, nearly 2 in 5 (37%) Americans say that couldn't afford an emergency expense over $400, and 21% of people have no emergency savings at all, you've got a financial storm brewing for the average pet owner.

To alleviate this, pet insurance helps smooth out the financial risk of such unexpected vet bills (especially emergencies and serious illnesses), with the knock-on effect that this specialty financial tool gives pet owners more confidence to take their pets to the vet more regularly, potentially catching issues before they worsen. So, while pet insurance doesn't completely eliminate your pet costs, it will reduce financial risk, encourage proactive care, and can make expensive vet treatment more accessible.

The Shelter Insurance Dilemma

Unfortunately, many shelters, especially small, local rescues, lack the resources that can help new pet parents navigate the financial landscape of pet ownership. And if they do, many have an exclusive partnership with only one (1) pet insurance carrier. There exist instances where the process of adopting a pet will feel rote or automatic, something along the lines of…

"Thanks for adopting, now please go to this pet insurance representative on-site and get insurance through them (and only them). Do not ask for other options that may fit your pet and/or your budget better. Do not pass go. Do not collect $200 dollars."

If this is how your rescue or shelter works, you should be skeptical. Responsible rescues and shelters know the real costs of pet ownership and should help you understand your insurance options, what it does and does not cover, and recognize that one pet insurance plan doesn't fit all. They may not be experts, but they should provide you with more than just one option.

Know Your Options

Therefore, you should know your pet insurance options and what fits you and your newly adopted pet the best. PIPA Broker's free quote aggregator and resources help you understand common pet ailments by breed, preferred health practices to avoid vet visits, and in the event of an unexpected animal hospital bill, what the expected costs may be and how pet insurance can help you avoid financial stress.

As millennials and Gen Z'ers age and continue to responsibly adopt pets from rescues and shelters, one of the facets of sound personal financial behavior that gets overlooked in the modern age is the financial responsibility to your dog or cat – and for that, there's PIPA Broker.