$1 Billion in Pet Insurance Claims – Can You Afford Not to Be Insured?

On December 15, 2025, Embrace Pet Insurance, one of the leaders in the pet insurance industry, announced that Juju, a 9-year-old mixed-breed dog with a torn cruciate ligament, officially pushed Embrace past the billion-dollar threshold. Although justifiably proud of the achievement, the company’s president, Scott Stice, wanted to use the moment to highlight the vital role played by pet insurance. 

“It represents thousands of moments when pet families were able to say yes to care and avoid the unthinkable,” said Scott. “We’re proud to play a role in helping pets get the care they need and in shaping what support should look like for today’s pet families.“

But it also seems that Scott might need to check his figures, as we’re not just talking about thousands of pet families, but a staggering 6.6 million claims since the company launched in 2003. The largest claim they ever covered? A toy-sized mixed breed treated for aspiration pneumonia and heart disease in 2023, with a whopping total bill of over $48,000! 

With the cost of living crisis being felt around the world, the price of looking after a pet has risen along with everything else (apart from our salaries!), and now, more than ever, it is essential to have a plan in place in case the worst happens. Unfortunately, pet insurance is often seen as a “luxury” expense, and less than 6% of dogs in the US are covered. However, the number of both dogs and cats insured has been steadily rising over the past five years.

The trap that many pet owners fall into is the romanticised notion that, instead of forking out for pet insurance premiums each month, they will put that money into a savings account to be used if and when needed. The trouble is that while most pet insurance companies will pay out for a $10,000 vet bill after just a few weeks or months of starting a policy, most people’s pet accounts won’t have that sort of balance for years, if ever. 

There are very few of us who could afford to cover the costs of an intensive medical condition or complex surgery, something that often leads to anger and frustration, which invariably gets directed towards veterinary staff. $1 billion in claims does not mean that 94% of uninsured dogs cost their owners $16 billion in vet fees, but it does imply that there is likely to have been a substantial number that missed out on receiving the best possible care because of financial constraints.

The veterinary industry is indeed worth billions of dollars, but it is an industry that none of us would care to be without. The reality is that good training, equipment, staff, and medication all cost money, and as the cost of living goes up for us, it does for veterinary hospitals too. Pet insurance shouldn’t be seen as a luxury item, but one that is an essential accompaniment to pet ownership. But, like with most things, you do get what you pay for, and not all pet insurance companies were created equal, so it really does pay to do your homework.

Here are our top tips for choosing pet insurance:

Don’t buy the first policy you see. Take time to sit and read the fine print, paying close attention to:

Price

Many companies will offer invitingly low premiums for the first year, but these will often increase significantly in subsequent years or once you have made a claim.

Length of Cover

Most companies cover a condition or illness for a period of 12 months, but not all provide cover for the life of your pet. Lifetime policies are more expensive, but if your pet develops a long-term condition or a problem that comes back later in life, it will be worth it!

Amount of Coverage Provided

Check how much the company pays out per condition, or per year. Some will set a maximum amount per condition total, while others will restart the amount each year.

Pre-existing Conditions

When you get your pet insured or change to a different insurer, ANY condition which has been noted in your pet’s history will usually be excluded, even if it didn’t require treatment at the time, so it’s best to take out a policy as soon as possible, and check with your vet if you’re thinking about changing companies.

Waiting Period

Most insurance companies have a waiting period for coverage, around 7-21 days after the policy is taken out. Don’t wait until you notice a problem with your pet to take out a policy, and please do not ask your vet to keep anything out of your pet’s records! The best time to insure your pet is the day you take them home, if not before.

Talk to friends, family, and your veterinary team to find out who they would recommend (or NOT recommend!), and remember that if your four-legged friend finds themselves needing emergency care, it’s a huge relief to know that at least the fees are taken care of.

Feature Image Credit: Yta23, Shutterstock

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