A broken leg, an emergency surgery, a surprise cancer diagnosis — vet bills like these can run $3,000, $5,000, or more, and most pet parents aren’t ready. A 2025 PetSmart Charities-Gallup study found that over half of U.S. pet owners (52%) have skipped or declined needed veterinary care, usually because they couldn’t afford it.

That’s the gap pet insurance tries to fill: It helps you say yes to life-saving care without panicking about the cost. But it’s not always straightforward. Policies can be full of fine print, and the value you get depends heavily on your pet and your finances.

Here’s how to figure out when pet insurance is worth it — and when it might not be.

Learn more: How does pet insurance work? A complete guide.

“Pet insurance is ideal for pet owners who can afford a monthly premium but would find it a hardship to pay a large emergency bill all at once,” said Dr. Robyn Jaynes, director of veterinary affairs at PetSmart Charities.

If an unexpected vet bill would break your budget or force you to dip into savings meant for other goals, a pet insurance policy could allow you to make medical decisions based on what’s best for your pet, rather than what you can afford.

“Most pet parents don't anticipate having to spend thousands of dollars up front on their pet's health,” said Dr. Amy Fox, doctor of veterinary medicine and author at Kinship, a pet parenting website. “But when accidents happen like pets getting hit by cars, eating something they shouldn't, or breaking a bone, the medical bills can easily be thousands of dollars. Insurance can be a literal lifesaver when emergencies arise.”

Still, pet insurance may not be right for everyone. If your pet is older and has preexisting conditions or if you have the savings to cover big expenses out of pocket, paying for pet insurance may not make financial sense.

Learn more: The best pet insurance companies of 2025

Here are some of the biggest pros and cons to consider as you weigh whether pet insurance is worth it.

Pros

• Can reduce the financial blow of unexpected emergencies

• Can make difficult treatment decisions easier

• Offers peace of mind against unexpected costs

• Many coverage levels and policies to choose from

Cons

• Monthly premiums can add up, especially if you don’t use the insurance

• Preexisting conditions typically aren’t covered

• You generally have to pay the vet bill up front and wait for reimbursement (unless your vet accepts direct payment)

• Most policies have waiting periods, exclusions, and payout limits

Learn more: Pet insurance that pays the vet directly: How does it work?

Pet insurance isn’t a guaranteed win, especially if your pet is older or already has health issues that will be excluded as preexisting conditions. Use these steps to think through whether it makes sense.

Could you afford an emergency pet surgery tomorrow? If not, pet insurance might be worth considering. A 2025 report from the North American Pet Health Insurance Association found that the average annual premium for accident and illness coverage is $749.29 for dogs and $386.47 for cats, potentially far less than a single major vet bill.

Expert tip: If you already have a healthy emergency savings account, you might prefer to self-insure. But remember: Tapping into savings could mean less money available for other emergencies or goals.

Some pets are more likely to rack up expensive vet bills than others, and insurance can be a better bet in those cases.

Start by talking to your vet because they can flag common conditions you might expect in the future based on your pet’s age, breed, and health history.

“Generally, pet insurance is most helpful when you start it early, ideally when your pet is young and healthy,” said Fox. “At this age, you’ll get the most comprehensive coverage and avoid exclusions for preexisting conditions.”

Health history. If a condition develops or is diagnosed before you buy a pet insurance policy or during the policy's waiting period, it will generally be excluded from coverage as a preexisting condition. This can include arthritis, allergies, and chronic GI issues. That’s why your pet’s health history matters. If they already have ongoing issues when you buy pet insurance, coverage will likely be limited to only new problems.

Breed. Some breeds are prone to specific (and costly) health problems, like hip dysplasia in large dogs or respiratory issues in brachycephalic breeds such as pugs and bulldogs.

Lifestyle. Outdoor cats and active dogs are at higher risk for accidents and injuries, while indoor pets tend to face fewer emergencies, but can still develop chronic conditions over time.

Expert tip: “For pets that are not insured, expenses in their golden years can add up,” Fox said. “This can strain finances or force pet parents to pick and choose between treatments.” But when pet insurance is already in place, she notes, it can help cover frequent visits, medications, and monitoring.

Learn more: Pets Best pet insurance review 2025

Veterinary care costs can vary widely depending on where you live. Understanding local costs can help you weigh whether paying a monthly pet insurance premium is worth it and less stressful than paying for an emergency out of pocket.

According to the Animal Urgent Care clinic in Dallas, here are some examples of their common vet costs:

• Comprehensive lab work: $225

• Laceration repair: $500-$1,500 and up

• Toxicities: $500-$1,000

• Heat stroke: $1,200-$2,000

• Gastroenteritis: $500-$850

• Feline urethral obstruction: $1800-$2,100

Step 4: Understand what pet insurance covers and what it doesn’t

Before you buy, it’s important to understand what pet insurance covers. While coverage will vary by policy, here’s what you can typically expect.

Commonly covered:

• Accidents (like broken bones, poisoning, or swallowing objects)

• Illnesses (such as infections, cancer, arthritis)

• Chronic conditions diagnosed after your coverage starts

• Hereditary and congenital conditions

• Emergency surgeries and hospitalization

• Prescription medications

• Diagnostic tests like X-rays

Often not covered:

• Preexisting conditions (anything diagnosed before coverage begins)

• Preventive care (unless you add a wellness plan)

• Cosmetic or elective procedures (like ear cropping)

• Breeding-related expenses

• Behavioral therapy (sometimes available as an add-on)

Policies also have:

• Annual coverage limits: This is the maximum the insurer will pay in a year. Some policies provide unlimited annual coverage.

• Deductibles: This refers to the amount you must pay out of pocket toward vet bills before coverage kicks in.

• Coinsurance: After the deductible is met, you’re responsible for a certain percentage. For example, you might pay 20% of the bill, and insurance covers 80%.

• Waiting periods: Many pet insurers require 14 days after enrollment before illness coverage begins, and longer for certain conditions like cruciate ligament injuries.

Expert tip: “Don’t choose a policy with a particularly low ceiling of coverage,” advised Dr. Rebecca Greenstein, veterinary medical advisor for Rover. “A broken leg can cost $4,000 to $6,000 to repair these days.” Having a maximum of around $2,000 in coverage can leave you with significant out-of-pocket costs.

Once you have a sense of your pet’s potential needs and the typical vet costs in your area, it’s time to shop around. Pet insurance prices will vary, even for the same type of coverage.

When gathering quotes, make sure you’re comparing similar coverage options, such as:

• Annual limit: $5,000, for example, or unlimited

• Reimbursement rate: Usually 70%, 80%, or 90%

• Deductible: Can be $250, $500, or $1,000

Expert tip: Greenstein recommends looking for policies with at least $5,000 to $10,000 in coverage per year and evaluating how deductibles and claim frequency may affect what you’ll actually get back.

Here’s a snapshot of how much a $5,000 annual coverage policy costs for a 1-year-old, mixed-breed dog:

• Pets Best — Essential plan: $23.79

• Lemonade: $24.32

• Pets Best — Plus plan: $26.77

• Pets Best — Elite plan: $27.50

• Embrace: $35.24

• Spot: $41.03

• MetLife: $41.34

• Figo: $41.84

• Fetch: $43.11

• AKC: $43.41

• ASPCA: $43.42

• Liberty Mutual: $45.03

Step 6: Calculate your potential costs with and without insurance

Before you buy pet insurance, it’s smart to do a little math.

Expert tip: “Be honest about your finances,” recommended Jaynes. “It’s worth talking to your vet openly. They can often suggest options, from payment plans to community clinics, if insurance isn’t the right fit.”

Here’s how to make an estimate:

• Tally your expected premium costs. For example, if you pay $70 a month for a $5,000 annual coverage policy, that’s $840 a year, or $4,200 over five years, assuming rates stay steady (but they often increase as pets age).

• Factor in your deductible and reimbursement rate. Most plans reimburse 70%, 80%, or 90% of covered expenses after you meet your deductible (often $250 to $500), up to your policy’s annual limit.

Now, compare that to potential vet bills. Here’s what common emergencies could cost, according to ManyPets:

• Broken bone: $3,000-$6,000

• Cancer treatment: $5,100-$16,200+

• Emergency hospitalization (per day): $800-$1,500

If you think you could comfortably cover one or more of these emergencies out of pocket, you might be fine self-insuring. But if a surprise bill would be financially devastating, pet insurance could be well worth the cost for the financial safety net.

Pet insurance isn’t the only way to prepare for big vet bills. If you decide it’s not the right fit, here are alternatives that could work:

• Build a dedicated pet emergency fund. Instead of paying monthly premiums, you could set aside money in a high-yield savings account to cover unexpected vet bills.

• Ask your vet about payment plans. Many veterinary offices offer payment plans directly through the practice or by partnering with financing companies to help spread out the cost of major procedures.

• Use financing options like CareCredit. CareCredit is a healthcare credit card that many vets accept. It sometimes offers 0% interest for a promotional period, but if you don’t pay it off in time, deferred interest can kick in at a higher rate. There are some 0% APR credit cards too. Just aim to pay it off before the interest-free window closes.

• Research charitable funds and assistance programs. Nonprofits like RedRover Relief and resources listed by the American Veterinary Medical Association offer financial assistance for emergency vet care if you qualify.

There is no universally right answer to whether pet insurance is worth it. The key is to run the numbers, weigh your risk, and make a plan before you're in crisis mode.

Amy Danise and Tim Manni edited this article.