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analysis

Pet Insurance by State: California Leads with 18% Market Share

NAPHIA data reveals California, New York, Texas, and Florida dominate US pet insurance. State-by-state adoption rates and premium costs.

Michael Torres

Michael Torres

Insurance Analyst

4 min read
US map showing pet insurance adoption by state

Pet insurance adoption varies dramatically across the United States. Here’s the state-by-state breakdown.

Top States by Market Share

RankState% of Insured PetsEst. Policies
1California18.3%1.17 million
2New York7.5%480,000
3Florida6.2%397,000
4Texas6.0%384,000
5New Jersey4.5%288,000
6Washington3.8%243,000
7Massachusetts3.5%224,000
8Illinois3.2%205,000
9Pennsylvania3.0%192,000
10Colorado2.8%179,000

Source: NAPHIA 2023-2024 Data, based on 6.4 million insured US pets

Top 5 states = 45% of all US pet insurance policies

Premium Costs by State

StateDog (Monthly)Cat (Monthly)vs National Avg
California$28$18+27%
New York$26$17+18%
Massachusetts$25$16+14%
Washington$24$15+9%
Florida$23$14+5%
National Avg$22$14-
Texas$21$13-5%
Ohio$19$12-14%
Indiana$18$11-18%
Iowa$17$10-23%

Based on $5,000 coverage, $250 deductible, 80% reimbursement

Average Claim Costs by Region

Q3 2024 data from Embrace Pet Insurance:

RegionAvg Claim Costvs National
Washington D.C.$520+18%
California$513+16%
Washington$503+14%
Massachusetts$498+13%
New York$485+10%
National Avg$442-
Texas$410-7%
Florida$405-8%
Ohio$398-10%
Midwest (avg)$385-13%

Why California Dominates

1. Largest Pet Population

  • 9.3 million dogs (11% of US total)
  • 8.1 million cats
  • High pet ownership rate

2. High Income / High Awareness

  • Disposable income supports premiums
  • Tech-savvy population (online purchase ease)
  • Strong pet culture

3. High Vet Costs

  • LA/SF vet costs 30-50% above national average
  • Emergency care extremely expensive
  • Greater incentive to insure

Fast-Growing Markets

State2023-2024 GrowthMarket Driver
Texas+28%Rising pet ownership
Florida+26%Retirees with pets
Arizona+24%Population influx
Colorado+23%Young, pet-friendly demos
North Carolina+22%Growing metro areas

Penetration Rate Comparison

Country/RegionPenetration Rate
UK25%+
Sweden40%+
US National3.9%
US Dogs5.5%
US Cats2.0%

Opportunity: If US matches UK rates, market could grow 6x.

City-Level Insights

CityRelative PremiumClaim Volume
San FranciscoVery HighVery High
New York CityVery HighVery High
Los AngelesHighVery High
SeattleHighHigh
DenverModerateHigh
AustinModerateModerate
PhoenixModerateGrowing
DallasModerateGrowing
MiamiModerateHigh
ChicagoModerateHigh

Implications for Pet Owners

In High-Cost States (CA, NY, MA)

  • Insurance pays for itself faster
  • Higher vet bills = higher reimbursements
  • Prioritize unlimited or high-limit plans

In Low-Cost States (TX, OH, Midwest)

  • Premiums more affordable
  • May choose higher deductible
  • Standard coverage often sufficient

Data sources: NAPHIA State of the Industry Report, Embrace Pet Insurance Q3 2024, Forbes Advisor

Frequently Asked Questions

Which state has the most pet insurance policies?

California leads with 18.3% of all US insured pets, followed by New York (7.5%), Florida (6.2%), and Texas (6.0%).

Is pet insurance more expensive in California?

Yes, California premiums average 20-35% higher than national average. Dog insurance averages $28/month vs $21/month in Texas.

What is the pet insurance penetration rate in the US?

US pet insurance penetration is 3.9% overall—5.5% for dogs and 2.0% for cats. California and coastal states have higher rates.

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