Market Overview

According to Fortune Business Insights, the U.S. pet insurance market size was valued at USD 5.34 billion in 2024. The market is projected to grow from USD 6.48 billion in 2025 to USD 20.05 billion by 2032, exhibiting a CAGR of 17.5% during the forecast period. The South region dominated the U.S. pet insurance market with a market value of USD 2.21 billion in 2024.

Fortune Business Insights™ has deep-dived into these insights in its latest research report, titled “U.S. Pet Insurance Market, 2025-2032.”

The analysis shows that the U.S. has seen considerable growth in pet ownership, and with a large proportion of owners considering their pets as part of the family, there has been a significant rise in pet insurance penetration. For example, in 2025, around 94 million households in the U.S. owned a pet (with 68 million owning a dog and 49 million owning a cat), and total spending on pets exceeded USD 150 billion in 2024. Additionally, a Pew Research Center survey revealed that 97% of pet owners consider their pets as family, with 51% viewing them as much a part of the family as a human member. This trend indicates a strong, growing demand for pet insurance platforms across the country.

Major Players Profiled in the Market Report:

• Trupanion (U.S.)
• Nationwide Mutual Insurance Company (U.S.)
• Embrace Pet Insurance Agency, LLC (U.S.)
• Fetch Pet Insurance (U.S.)
• Pets Best Insurance Services (U.S.)
• Healthy Paws (U.S.)
• ASPCA Pet Insurance (U.S.)

Segments

Larger Pet Population and Higher Insurance Penetration to Propel Dog Segment Growth

Based on pet type, the market is divided into dogs and cats. The dog segment holds the largest market share—accounting for around 86% of the market and 55% of the total 164 million pet population in 2024—and dominates the market owing to a larger population and a higher insurance penetration rate of 7.1% (compared to 3.1% for cats). However, the cats segment is projected to grow at a higher rate during the forecast period due to rising insurance penetration.

Rising Veterinary Care Costs to Drive Accident & Illness Segment Expansion

By coverage, the market is bifurcated into accident & illness and accident only. The accident & illness segment is leading the market and is projected to grow at a higher CAGR of 19.0% during the forecast period. There is a high preference for these policies due to the growing cost of veterinary care, despite premium amounts being 3 to 4 times higher than accident-only policies (averaging USD 62.4 monthly for dogs and USD 32.2 for cats in 2024).

Dedicated Providers to Dominate the Market Due to their High Preference among Consumers

Based on provider, the market is segmented into dedicated and non-dedicated insurance providers. The dedicated providers segment holds the largest market share—accounting for around 58% of the market in 2024—and is projected to grow at a higher rate owing to strong consumer preference for specialized companies like Trupanion, Figo, Healthy Paws, and Embrace, which offer comprehensive coverage, customization options, and user-friendly features.

Geographically, the market is studied across the Northeast, Midwest, South, and West regions of the U.S.