The Raising Pet Insurance Trends For 2022

Pet insurance is one of the fastest-growing industries in America, and it’s pretty easy to see why. Animals are unique, and while many of us may feel that our pets are family members, the reality is that most owners are beloved children, and just like children, they need to be taken care of. Pet insurance makes it possible for owners to do just that. Unfortunately, pet insurance also has its own set of challenges, and at Animalia, we know those challenges too well.

If you own a dog or cat, you probably already know about their many expenses (food, toys, vet visits, medications, etc.). But have you considered how much it will cost to put your pet through an emergency vet visit? The average veterinary bill in the United States is $300, but depending on your pet’s breed and condition, it can add up to thousands of dollars. Pet insurance can be a smart alternative to paying out of pocket for expensive veterinary costs.

According to the American Pet Products Association, American households spent about $73.5 billion on their pets in 2020. With such a high dollar amount at stake, pet owners spend big bucks on food, supplies, grooming, and veterinarian visits. However, not all pet owners have pet health insurance, and those that do aren’t necessarily aware of the types of coverage that can help them pay the costs of essential veterinary services.

Pet Insurance Is Becoming Increasingly Popular

Pet insurance is becoming increasingly popular. According to a recent survey, roughly 68 percent of dog owners have pet insurance, and 36 percent of those pet owners rely on their pet insurance to cover vet costs. Pet insurance is a type of health insurance that covers medical, surgical, and dental care for pets. Different policies cover different services, and premiums and deductibles vary as well.

How Veterinary Expenditure Influenced Pet Insurance

As the cost of veterinary care rises, pet insurance is becoming increasingly popular. This increasing veterinary expenditure has been directly attributed to the growing number of pet owners treating their pets like family members. According to Statista, the number of pets per household in the United States has increased from 2.5 in 1975 to 4.3 in 2014. The increasing cost of veterinary care likely influences this trend.

How Pet Insurance Works

Although pet insurance is becoming increasingly popular, many owners remain unaware of its benefits. A 2013 study from Pet plan estimated that 36% of pet owners in the U.S. had insurance for their cats and dogs. The popularity of pet insurance is growing rapidly, and pet owners are taking advantage of the opportunity to protect their furry family members. Here’s how pet insurance works.

Pet insurance works much like regular health insurance, but your pet is the main attraction. Just like humans, animals can experience illness or accidents. And just like humans, these things happen at the worst possible moments. Most pet owners could go without health insurance for years, but pets can’t. So, pet health insurance must help save your pet’s life.

Pet insurance is insurance for your pet, typically covering the costs of any health-related expenses. Pet insurance is usually underwritten by an insurer who the American Pet Products Association approves.


Deductibles and copays are essential to understand. The deductible is the amount you pay before the insurance begins paying for services. A nominal deductible often results in a lower premium but a higher out-of-pocket expense. Copayments are a fixed amount that you pay for each service.

Reimbursement Rate

The reimbursement rates are highly variable since each pet insurance policy is designed to allow that policy to match well with the needs of its insured. The factors affecting reimbursement rates are: 

  • The type of coverage—Some policies cover more than routine care, and some only cover routine care. 
  • The pet’s age, breed, and health status since those factors increase the chances of injury or illness. 
  • The geographical area of the pet owner. 
  • The grooming experience of the pet. 
  • The availability of veterinary care within a 20-mile radius of where the pet lives. 
  • The pet’s history of owning pets, such as whether it has allergies. 
  • The amount of time the pet has been insured. 

Insurance coverage ranges from routine care only to regular care with primary medical coverage.

Pet owners need to know that pet insurance reimbursement rates vary by pet insurance plan. Generally, reimbursement rates have both an annual wellness & sickness rate and a lifetime reimbursement rate. Most policies also have a limit on the lifetime reimbursement rate.


There are two types of limits: per-incident limits and annual limits. This is something you should consider on a pet insurance plan. This will significantly benefit you if you anticipate what type of healthcare your pet needs.

  1. Per-incident limit is a cap on how much you can be reimbursed for each accident or illness for your pet.
  2. The annual limit is a cap on how much reimbursement you can get over a calendar year.

Most pet owners, at some point, consider pet insurance. It’s usually a matter of when not if. The reasons vary, but these are some of the most common:

  • Pet on family policy
  • New pet
  • Lost income
  • Pet has an injury
  • Pet has an illness
  • Pet has an accident
  • Unexpected trip
  • Pet needs dental work
  • Pet gets very old
  • Pet has diabetes
  • Pet has cancer
  • Pet needs to be put down
  • Pet needs to be neutered
  • Pet has expensive routine care
  • Pet’s breed is at risk for expensive illness


In conclusion, pet insurance is growing rapidly, and pet owners embrace the option to protect their furry friends. The Pet insurance market is expected to grow to $11.5 billion by 2022 from $6.5 billion in 2022.

The industry is expected to experience rapid adoption in 2022 and benefits from growing pet ownership, increasing pet-related expenses, and increasing pet wellness trends.

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