Pet Insurance Regulations by State: Only 14 States Offer Additional Protection for Pet Parents | Insurify

Pets are family to many Americans. Yet few states have specific regulations for pet insurance. Instead, most regulate pet health insurance like property insurance, not health coverage — if they regulate it at all.

Pet insurance, which covers pets' physical well-being, including injuries, illnesses, and accidents, has become a multibillion-dollar industry. But it's grown with few specific regulations in place.

In 2022, the National Association of Insurance Commissioners (NAIC) created a set of guidelines that states can adopt to create transparency and structure for the pet insurance industry. Fourteen states have taken steps to regulate pet insurance as a unique product, defining terms and adding protections so pet parents know exactly what coverage they can count on.

Key Insights

Pet insurance costs an average of $516 per year for dogs and $276 per year for cats, according to Insurify's analysis of Fletch data.California, Maine, and Mississippi are among the states that have specific regulations for pet insurance, but 36 states don't.Regulations haven't had much of an effect on pet insurance costs. The 14 states' combined average cost of pet insurance for cats and dogs ($395 annually) shows no significant cost savings compared to the national average ($396 annually).Pets are legally considered property: industry-recommended pet insurance regulations define pet insurance as a form of property insurance.Six states are currently considering pet insurance legislation, including New Jersey and New York.

Only 14 states offer additional consumer protections for pet insurance

In 2014, California became the first state to pass laws regulating pet insurance. Other states didn't follow suit until the NAIC published model legislation in 2022.1

The Pet Insurance Model Act is a regulatory model that states can reference, modify, or adopt to create state-specific standards for pet insurance. The NAIC developed the model to establish "clear rules for the sale of pet insurance" and provide "important disclosures to pet owners."

The model act addresses four key elements:

Consumer protections: Insurers must include a "free look" period and disclose policy exclusions and limits, as well as whether claim history, pet age, or geographic location could affect coverage or premiums.Pre-existing conditions: Insurers can exclude pre-existing conditions but must prove that the exclusion applies to the condition.Wellness programs: Insurers must clearly differentiate pet wellness programs from pet insurance.Training requirements: The model requires insurance producers to receive training in pre-existing conditions, waiting periods, the difference between pet insurance and wellness programs, and more.

Yet, despite the freely available NAIC pet insurance model regulations, only 14 states have adopted similar legislation.

Here are the 14 states that currently regulate pet insurance as a distinct insurance product:

California

Average annual cost of dog insurance: $564Average annual cost of cat insurance: $276

California passed legislation in 2014 standardizing definitions, requiring pet insurers to disclose important policy information, and providing consumers a 30-day "free look" period. In 2024, the Golden State amended its pet insurance regulations to add language from the NAIC model act, expanding on definitions and adding more consumer protections.

Dog insurance rates are higher than the national average in California, while cat insurance rates are right around average. California has an exceptionally high cost of living and costly vet care, which both affect pet insurance rates. Pet owners in neighboring Oregon and Arizona pay higher rates, despite having a more moderate cost of living and lower vet care costs. The availability of care can also influence rates. Nevada residents enjoy lower rates and a lower cost of living.

Delaware

Average annual cost of dog insurance: $576Average annual cost of cat insurance: $276

The Delaware General Assembly adopted legislation, based on the NAIC model, into its insurance code with bipartisan support in August 2023. A Delaware Department of Insurance bulletin emphasized that the legislation aimed to "promote the public welfare."2

Delaware is among the 10 most expensive states for dog insurance, though its rates are lower for cat insurance. Cost of living and vet care are around average in Delaware, but a lower vet-to-pet ratio may drive up costs. Delaware's rates are similar to those of nearby Maryland, Washington D.C., and New Jersey, but Pennsylvania has below-average rates.

Florida

Average annual cost of dog insurance: $516Average annual cost of cat insurance: $252

Florida approved its version of the NAIC model legislation in April 2025. The bill adds pet insurance to the state laws' definition of property insurance. The regulations will take effect Jan. 1, 2026.

"As companion animals live longer, veterinary care costs are rising, prompting more pet owners to consider insurance for managing expenses related to preventive care, illnesses, and emergencies," legislative staff wrote in a bill analysis.

Florida's pet insurance rates fall right around the national average. Neighboring states Georgia and Alabama have much lower rates, and both rank among the 10 least expensive states for pet insurance.

Louisiana

Average annual cost of dog insurance: $432Average annual cost of cat insurance: $204

Louisiana legislators amended the state's crop and livestock insurance statute to adopt the NAIC model in 2023. The law had bipartisan support and took effect on Jan. 1, 2024.

Louisiana is one of the least expensive states for dog and cat insurance. A low cost of living and of veterinary care means less expensive bills, and competition hasn't driven up rates thanks to a low demand for vets. Nearby Arkansas, Texas, and Mississippi have similar rates.

Maine

Average annual cost of dog insurance: $624Average annual cost of cat insurance: $312

Maine was the second state to adopt pet insurance regulations. Bill sponsor and former State Senator Heather Sanborn told the Veterinary Information Network News Service that consumer confusion about how pet insurance differs from human health insurance sparked her interest in pet insurance regulation. Maine passed legislation based on the draft version of the NAIC model in 2022. It took effect in January 2023.

Maine is the third most expensive state for dog insurance and among the most costly states for cat insurance. Nearby states New Hampshire and Massachusetts also rank in the top 10 most expensive states for dog and cat insurance, while Vermont's rates are just above average.

Maryland

Average annual cost of dog insurance: $564Average annual cost of cat insurance: $324

Maryland adopted legislation based on the NAIC model in late 2024.3 The state House and Senate passed the law unanimously, adopting it into the property and casualty section of the state's insurance articles.

Maryland is among the most expensive states for pet insurance, with above-average dog and cat insurance rates. Nearby Delaware has high dog insurance rates and slightly below-average cat insurance rates, while Pennsylvania, Virginia, and West Virginia have below-average rates.

Mississippi

Average annual cost of dog insurance: $408Average annual cost of cat insurance: $216

Mississippi was the third state to adopt pet insurance regulations, passing legislation based on the NAIC model in April 2023. The state added the law to the "non-auto property and casualty" section of the Mississippi code. In a press release, Insurance Commissioner Mike Chaney said the state adopted the legislation because "[p]et insurance may seem like a joke to some, but it is big business … and that big business is coming to Mississippi."4

Mississippi is among the 10 least expensive states for pet insurance, along with neighbors Louisiana, Alabama, and Arkansas. Nearby Tennessee also has below-average rates.

Montana

Average annual cost of dog insurance: $528Average annual cost of cat insurance: $216

Montana Gov. Greg Gianforte signed the Montana Pet Insurance Act on April 3, 2025.

"Veterinary bills can become quite high, and this is a way to obtain coverage for something," bill sponsor State Rep. Greg Overstreet (R-District 88) said at a January hearing. "A lot of families probably don't have $3,000 to rehabilitate a dog that barks after deer and continually re-tears her ACL."

Montana pet insurance rates are around the national average, with slightly lower dog insurance rates and marginally higher cat insurance rates. Neighboring states have similar rates, though several have higher cat insurance costs. More moderate costs of living and vet care have meant rates haven't spiked.

Nebraska

Average annual cost of dog insurance: $492Average annual cost of cat insurance: $336

Nebraska quickly passed legislation based on the NAIC model. The governor signed the bill in April 2023, and the regulations took effect in January 2024.

Nebraska is one of the most expensive states for cat insurance but has below-average dog insurance rates. Nearby Colorado is among the top 10 most expensive states for pet insurance.

Neighboring states like Iowa, Missouri, Kansas, Wyoming, and South Dakota all have below-average cat insurance rates, while Wyoming, South Dakota, and Kansas have above-average dog insurance rates.

New Hampshire

Average annual cost of dog insurance: $612Average annual cost of cat insurance: $384

New Hampshire adopted the NAIC regulatory framework in July 2023, effective January 2024. Noting that "[p]ets become family" in a press release, former Gov. Chris Sununu said the law provides pet owners peace of mind and the opportunity to ensure their pets receive the best care possible.

The Granite State is the most expensive state for cat insurance and one of the 10 most expensive states for dog insurance. New England neighbors Maine and Massachusetts have above-average pet insurance rates, while rates in Vermont are closer to average.

Ohio

Average annual cost of dog insurance: $456Average annual cost of cat insurance: $252

Ohio adopted pet insurance laws based on the NAIC model in the summer of 2024, which took effect in late January. At a hearing, a spokesperson from the North American Pet Health Insurance Association (NAPHIA) supported the legislation, saying "the industry wants consumers to be happy with their purchase."

Ohio ranks among the least expensive states for pet insurance, along with neighbors West Virginia and Kentucky. Indiana and Pennsylvania also have below-average pet insurance rates, while Michigan's rates sit around the national average.

Pennsylvania

Average annual cost of dog insurance: $468Average annual cost of cat insurance: $276

Pennsylvania passed a bill based on the NAIC model in June 2024, and it took effect in December.5 Primary bill sponsor Rep. Michael Schlossberg (D-District 132) identified Pennsylvania's lack of laws addressing pet insurance contracts as a key motivation for this legislation.

"Pet insurance provides valuable coverage, but consumers deserve to know what is in their pet insurance policy, and pets deserve the care they need, no matter the cost," he wrote in a sponsorship memo.

Pet insurance rates in Pennsylvania are lower than average and more moderate than those in some of its neighbors. Delaware, New Jersey, and New York rank among the most expensive states for pet insurance. Maryland also has above-average rates, but nearby Ohio and West Virginia each have below-average pet insurance rates.

Vermont

Average annual cost of dog insurance: $528Average annual cost of cat insurance: $288

Without fanfare, Vermont adopted pet insurance legislation based on the NAIC model in 2024, which will take effect July 1, 2025.

Pet insurance rates in Vermont are right around the national average, but that's not the case in neighboring states. New York, New Hampshire, and Massachusetts are all among the 10 most expensive states for pet insurance.

Washington

Average annual cost of dog insurance: $526Average annual cost of cat insurance: $276

Washington passed its version of the NAIC model pet legislation in April 2023, which took effect in January 2024. A press release from Washington's Office of the Insurance Commissioner noted that the law means "[m]ore protection and less confusion" for pet owners.

Washington's pet insurance rates are right around the national average. Neighboring Idaho has above-average dog insurance rates but slightly below-average cat insurance rates. However, Oregon ranks in the 10 most expensive states for dog insurance and has above-average cat insurance rates.

New Jersey, New York, and others are considering pet insurance regulations

While 14 states have officially passed legislation regulating pet insurance, another six, including New Jersey, are well underway. The New Jersey Senate reported its Pet Insurance Act from committee on March 24 after its second reading.

The New York Assembly passed pet insurance legislation in 2024, but Gov. Kathy Hochul vetoed the bill. In her veto memo, she wrote that "animal insurance … is already authorized in the state" and that the bill was "duplicative and would cause confusion."

"It appears that the governor thought that the pet insurance law was duplicative of a statute in New York that designates 'animal insurance' as 'insurance against loss of or damage to any domesticated or wild animal for any cause,'" Rick Faucher, president of NAPHIA, told Insurify. "This is not pet insurance … We're hopeful the legislation will pass this year once this confusion is cleared up."

Bill sponsor Assemblymember Pamela Hunter (D-Syracuse) has already reintroduced the bill in the 2025–2026 legislative session. When the bill passed both houses last June, she said it aims to provide consumer protections for pet insurance like there are for car and home insurance.

Similar legislation based on or incorporating language from the NAIC model act is in committee in Hawaii, Illinois, Massachusetts, and Rhode Island for consideration in the current session.

Despite currently low adoption, regulations are still effecting change on pet insurance products

The NAIC created the model act to "establish appropriate regulatory standards for the pet insurance industry" because, except for California, no states had dedicated pet insurance regulations before 2022. Still, most states don't have additional consumer protections for pet insurance: 36 states are currently without legislation, and 27 states have yet to consider it formally.

Faucher said the adoption process is moving faster than most model laws, adding that it can take three to five years to go "coast to coast."

"When pet insurers see the larger states adopting a model pretty much as-is, they can see where the trend is going," he said. "Carriers look for consistency. It creates a better consumer experience and improves customer service. … As insurers modify their product and update filings in all states, they tend to do it with the model law underpinnings in mind."

However, what's fast for the industry may feel slow to consumers. The Pet Insurance Model Act creates rules for selling pet insurance and providing policy disclosures, and pet parents in states without specific pet insurance regulations may lack the same protections.

To Dr. Frances Wilkerson, a veterinarian of 30-plus years, transparency is essential. Wilkerson told Insurify she's looking for a win-win solution across the board for how insurers handle all policy exclusions, including pre-existing conditions and bilateral conditions (medical issues affecting both sides of the body). The model act creates a consistent set of guidelines that doesn't force insurers to offer any specific coverages but aims to ensure consumers know exactly what policies cover.

"All I want is for pet insurers to disclose everything clearly. I want people to be well-informed," she said. "When a contract is open-ended, a company has more leeway to apply exclusions in ways that may not be immediately clear to the customer. How pet insurers structure their exclusions is their business. I just want them to make sure people are well-informed on what those exclusions are."

The factors affecting pet insurance costs

Adopting regulations hasn't seemed to affect pet insurance rates from state to state. Sri Oddiraju, CEO of embedded insurance partnerships firm Fletch, told Insurify that insurers' efforts to comply with state laws could affect rates. Still, it's not the most influential factor.

Faucher said that where a pet lives, its age, and its breed are typically the top three factors influencing pet insurance rates.

"As you can imagine, the cost of veterinary care in suburban Madison, Wisconsin, versus Beverly Hills is going to be very different," he said. Faucher said many insurers report seeing costs trending up by about 6% to 8% year over year. Certain local factors, like the increasing costs of real estate and labor, in addition to advancements in veterinary technologies, indicate that rates could increase.

The ratio of veterinarians to pets can also drive up rates. Too few vets in densely populated areas like Manhattan or more rural, spread-out areas like Alaska can lead to higher care costs. Competition among insurers can also affect rates, Oddiraju said. More established insurers may feel confident raising rates to match losses, while newer companies might lower rates to attract customers.

Premiums for combined accident and illness policies increased by 11% for dogs and 0.9% for cats from 2023 to 2024, according to the NAPHIA 2025 State of the Industry Report.

Accident-only pet insurance premiums actually decreased by about 5% from 2023 to 2024, NAPHIA reported. Insurify's analysis of Fletch data shows a similar trend, which Oddiraju explained.

"Pet insurance policies that offer limited coverage haven't increased in cost as much as higher-limit, more comprehensive policies," he said. "This makes sense since the more coverage insurers offer, the more risk they incur."

Even with regulation, pet insurance is still property insurance, not health coverage

Despite its model legislation, the NAIC doesn't have a dedicated pet insurance business category. It currently includes pet insurance in the inland marine line of business.

"When Veterinary Pet Insurance came on board [in 1982], the NAIC had to put pet insurance somewhere, so they may have used inland marine because it was the easiest legal and regulatory route, " Wilkerson said. "But I do know inland marine probably isn't the best category for pet insurance. On the flip side, if you made it more like health insurance, many state and federal laws would have to change."

A few states categorize pet insurance differently; for example, Florida categorizes it under livestock. But even in the model act, the NAIC defines pet insurance as "a property insurance policy that provides coverage for accidents and illnesses of pets." It's not a health insurance line of business.

"None of us would think of our pets that way, so we have to divorce insurance code from emotion," Faucher said. "I don't see any change in the codification of this being property insurance. That said, it covers health-related risks and perils that pets encounter."

NAPHIA was involved in the NAIC model law's working group sessions, and Faucher said that the question of whether to regulate pet insurance like human health insurance did come up. He said this is health insurance for pets, but regulators consider pets property for insurance purposes.

Dr. Liza Cahn, a veterinarian at Embrace Pet Insurance, told Insurify that, regardless of how states regulate pet insurance, the most important thing is that it's a product that works.

"The bottom line is that vets want to help animals, and pet owners want the best for their furry family members," she said. "Enhancing the affordability, accessibility, and transparency of pet insurance could provide even greater peace of mind."