Key takeaways
- NAPHIA's 2026 report shows US pet insurance premium growth of 20.8% against policy growth of 9%, so premiums per policy are rising faster than enrollment.
- Veterinary care prices rose 7.5% from 2024 to 2025 and 60% over the past decade, per Consumer Price Index data reported on August 28, 2026.
- At a $836 average dog premium, five years of premiums total $4,180 if rates stay flat and $5,104 if they rise 10% a year, so the renewal decision needs a break-even check.
Why did my pet insurance go up? The short answer is that premiums are rising faster than the number of insured pets. The North American Pet Health Insurance Association (NAPHIA) reported US premium growth of 20.8% against policy growth of 9%, per Insurance Business's June 25, 2026 report on NAPHIA data. This guide covers what is driving the pet insurance rate increase in 2026, and gives a renewal playbook with break-even math for your own policy.
What the 2026 industry data shows
US pet insurance premium growth outpaced policy growth by more than 11 percentage points in NAPHIA's latest report. Four figures frame the market:
- 7.6 million covered animals across North America in 2025.
- 9% US policy growth year over year.
- 20.8% US premium growth year over year.
- 4.27% of the US pet population insured, made up of 5.99% of dogs and 2.29% of cats.
All four come from NAPHIA's release, as covered by Insurance Business. Species-level growth rates were not broken out in the sources reviewed.
Premium growth above policy growth does not prove that a single policy rose 20.8%. New policies, plan mix, and species mix all move the total. It does show that the average dollar spent per policy is climbing. A rough estimate divides 1.208 by 1.09, which gives about 11% more premium per policy. That figure is this site's arithmetic, not a NAPHIA statistic.
Why vet prices are pushing premiums up
Premiums track the cost of the claims insurers pay, and vet prices are the largest input to those claims. Veterinary care costs rose 7.5% from 2024 to 2025 and jumped 60% over the past decade, according to Consumer Price Index data cited in KFVS12's August 28, 2026 investigation.
Our own vet cost squeeze report covers the shortage and clinic-consolidation explanations in detail. For renewal purposes, the takeaway is simpler. When the average claim costs more, an insurer raises rates to cover it, and it does so at the next renewal.
Where the average premium sits today
Average premiums vary by source and year, so compare like with like. CNBC Select's pet insurance cost analysis, updated April 9, 2026, reports 2024 averages for accident-and-illness coverage. That is a different data set from the NAPHIA averages of $836 a year for dogs and $435 a year for cats used elsewhere on this site.
| Coverage type | Dog, monthly | Dog, yearly | Cat, monthly | Cat, yearly |
|---|---|---|---|---|
| Accident and illness (CNBC Select, 2024) | $62.44 | $749.29 | $32.21 | $386.47 |
| Accident only (CNBC Select, 2024) | $16.10 | $193.29 | $9.17 | $110.03 |
CNBC Select notes that dog accident-and-illness premiums rose from about $56 a month in 2023 to $62.44 in 2024, roughly 11%. Accident-only dog premiums fell slightly over the same period. That split matters at renewal. The comprehensive plans are the ones getting more expensive.
7.5%
Rise in veterinary care prices from 2024 to 2025, per Consumer Price Index data reported by KFVS12 on August 28, 2026. Premiums follow claim costs, so the pet cost calculator models vet spending growth into your pet's lifetime cost.
Why your renewal quote differs from the industry average
Your own renewal reflects your pet, not just the market. Three inputs move an individual quote each year. The insurer pricing breakdown covers them in detail:
- Age. CNBC Select reports that a 9-year-old dog can cost two to three times more to insure than a 1-year-old. Every birthday nudges the quote up.
- Breed. CNBC Select names French Bulldogs and Golden Retrievers as purebreds with hereditary conditions that command higher premiums.
- Location. Local vet prices feed straight into the quote.
Insurify's renewal report adds that some insurers price low in the first year to win business. It also warns that switching to a cheaper insurer is risky, because most insurers do not cover conditions that already exist.
What renewal protections exist
State law limits what an insurer can do at renewal, but only in states that adopted the model. The NAIC Pet Insurance Model Act sets three renewal rules:
- No waiting periods at renewal. The act says waiting periods "may not be applied to renewals of existing coverage."
- No exam to renew. An insurer "must not require a veterinary examination of the covered pet for the insured to have their policy renewed."
- Covered stays covered. A condition "for which coverage is afforded on a policy cannot be considered a preexisting condition on any renewal."
The model does not cap how much a premium can rise. Our guide to waiting periods and pre-existing conditions lists the states that adopted the model and explains why switching insurers restarts those protections.
The break-even math on a rising premium
A premium that rises every year should be tested against the bill it covers. For dogs, a torn cranial cruciate ligament is a useful benchmark. The national average for that surgery is $3,525, per CareCredit's April 2026 cost guide.
This table uses the $836 average dog premium as a starting point. The increase rates are hypothetical scenarios, not forecasts:
| Yearly premium increase | Premiums paid after 3 years | Premiums paid after 5 years |
|---|---|---|
| 0% (flat) | $2,508 | $4,180 |
| 10% a year | $2,767 | $5,104 |
| 20% a year | $3,043 | $6,221 |
At a flat $836, five years of premiums total $4,180, which is more than one average cruciate surgery. At 10% yearly increases, premiums pass $3,525 during year four. That does not make insurance a bad deal. Insurance also pays the rare outlier claims that reach tens of thousands of dollars, and every covered claim in between. The cost math guide walks through that trade. The point here is narrower. A premium that compounds deserves a fresh look each year.
A renewal playbook
Treat every renewal notice as a decision, not a bill. Follow these steps:
- Get the new premium in writing. Find the increase in dollars and percent, and compare it to last year's figure.
- Raise the deductible. CNBC Select reports that deductibles of $750-$1,000 lower monthly premiums. Reimbursement rates run 50-90%, and higher rates raise the price proportionally.
- Lower the reimbursement rate only if your fund can absorb it. A 70% plan pays less on every claim, so the cash you keep on hand has to cover the 30% gap.
- Price a switch before you cancel. A new insurer restarts waiting periods and can exclude anything already diagnosed. Compare the full exclusions, not just the quote.
- Keep the old policy until the new one is active. A gap in coverage leaves you exposed to an uncovered claim.
- Build the bridge fund. Set aside cash equal to the expensive event you most fear. Use the average cruciate surgery of $3,525 as a starting target for a dog.
Photo: Karola G / Pexels
When self-funding beats a rising premium
Self-funding works best when the pet is young, healthy, and low-risk, and when you can fund the reserve. Insurance works best for high-risk breeds, older pets, and owners who cannot absorb a $3,500 or larger bill. Only 5.99% of US dogs and 2.29% of US cats carry coverage, per the NAPHIA figures above. Most owners already cover claims from savings.
Cat owners face smaller dollar amounts. CNBC Select's 2024 average is $386.47 a year for a cat accident-and-illness plan, roughly half the dog figure. The same test applies: compare five years of renewal quotes with the reserve you would need for a serious illness.
Work out your own number
Your renewal quote only makes sense next to your pet's real cost profile. The pet cost calculator estimates first-year, annual, and lifetime costs for 20 breeds, plus an emergency-fund target. Enter your pet, then compare that target with five years of renewal quotes at the increase rate you were just given. If the premium total climbs past the fund target, consider a higher deductible or a bigger reserve.
Frequently asked questions
Why did my pet insurance go up?
Premiums rise at renewal for three main reasons: veterinary prices are climbing, your pet is a year older, and insurers reprice whole groups of animals based on their claims. Veterinary care prices rose 7.5% from 2024 to 2025 per Consumer Price Index data. Age and claims experience then move your individual quote further.
Can I switch insurers to avoid a rate increase?
You can, but a new policy restarts the waiting periods and treats anything already diagnosed as pre-existing. A condition your current insurer covers can be excluded by the new one. Compare the new insurer's exclusions and waiting periods before you cancel.
Can an insurer make me take a vet exam to renew?
Under the NAIC Pet Insurance Model Act, no. The model says an insurer must not require a veterinary exam to renew a policy. It also says waiting periods cannot apply to renewals and that a covered condition cannot become pre-existing at renewal. Those protections apply in states that adopted the model.
See your own pet's real numbers.
Run the calculator with your breed, metro area, and care choices for a first-year, annual, and lifetime cost estimate — not a national average.