The data: The winter holidays drive a sharp uptick in claims for pet health emergencies, according to an analysis of Nationwide’s pet insurance data. Treatment averages $814 per incident, with surgery for internal blockages from ingesting foreign objects reaching up to $3,584. The rise in chocolate-related claims is most pronounced: There has historically been a 182% increase in claims in the final two weeks of December.

Zoom out: US gross written premiums for pet insurance climbed to $4.74 billion in 2024 from $1.99 billion in 2020, per the North American Pet Health Insurance Association. That growth reflects a significant additional expense for pet owners: For dogs, premiums cost an average of $516 per year and $276 per year for cats, according to Insurify's analysis of Fletch data.

Yet regulation hasn't kept pace with the industry’s growth. California passed the first pet insurance laws in 2014, but most states didn't follow until 2022. Today, only 14 states have specific consumer protections. New Jersey could be next: In December 2025, the state Senate passed a bill aimed at ensuring "clear, fair, and affordable coverage" for pet owners.

Our take: Pet insurance has gone from novelty to a $4.7 billion industry, but the regulatory patchwork may be holding back further growth.

While 94 million US households owned at least one pet in 2024, per the American Pet Products Association, only 6.4 million pets were insured that year. That represents just 5.5% of dogs and 2.0% of cats nationwide. Clearer regulation could help close that gap—inconsistent definitions, opaque exclusions, and convoluted terms have made pet insurance hard for consumers to trust. Standardized disclosures and consumer protections could make buyers more confident about what they're getting.