Pet Insurance Worth It 2026: Premiums Up 30%, Here's the Breakeven Math

# Pet Insurance Worth It 2026: Premiums Up 30%, Here's the Breakeven Math

> **Quick answer:** Pet insurance premiums have climbed roughly 30% since 2023, reaching an average of $62/month for dogs and $32/month for cats. For most pet owners, the decision comes down to one number: can you cover a $5,000–$10,000 emergency bill today without going into debt? If not, insurance is likely worth it. If yes, a dedicated savings account is mathematically competitive — but only if your pet is young, healthy, and low-risk. The math we lay out below will tell you which side you're on.

*This article is for informational purposes only and does not constitute financial advice. Consult a qualified financial advisor for personal financial decisions.*

Pet insurance used to be the quirky coverage option most people skipped. In 2026, skipping it is a much riskier bet. Veterinary costs have surged 43% since January 2021, according to Bureau of Labor Statistics CPI data for veterinary services, and premium costs have tracked right alongside them. The question is no longer whether pet insurance has gotten expensive — it has — but whether the math still works in your favor.

## Why Pet Insurance Premiums Are Up 30% in 2026

The North American Pet Health Insurance Association (NAPHIA) released its 2025 State of the Industry Report covering full-year 2024 data, and the numbers explain exactly why your renewal notice stung this year.