Is Pet Insurance Mandatory?

Answering the question directly, no, pet insurance had not been made mandatory by the government of the US or Canada. However, the government does intervene and regulate the insurers to protect the consumers for their best.

According to a 2023-2024 survey conducted by the American Pet Products Association (APPA), approximately 66% of U.S. households, or 86.9 million families, owned at least one pet (dog, cat, or other).¹ 65.1 million of these households owned at least one dog, and 46.5 million owned at least one cat. But among them, the insured pets are only about 8%.²

Although it’s not a mandatory requirement for pet ownership, pet insurance can play a huge role in helping you cover the eligible expenses of your pet’s unexpected medical conditions and accidents.

How Does the Government Regulate Pet Insurance?

According to NAPHIA, there are currently 25 pet insurance companies in the US.² While the Federal government or state governments have not mandated pet insurance, there are laws in place that require pet insurance providers to disclose baseline information. This includes reimbursement benefits, pre-existing condition limitations, and a clear explanation of limitations of coverage including coinsurance, waiting periods, deductibles, and annual or lifetime policy limits. Some policies and requirements may vary from state to state.

There are 3 major types of insurance plans –

Is Pet Insurance Required?

The government does not mandate pet insurance for pet owners. It is treated as an optional choice left to the owners to help protect themselves financially against unexpected vet bills. However, there may be some situations where you may be required to have pet travel insurance or liability coverage for your pet. Examples include-

Breed-specific – Some housing communities or areas do have a policy to have liability insurance coverage for some specific breeds that are known to be comparatively high risk or more dangerous than others and can cause damage to public property or strangers.³

Travel laws – If you are traveling along with your pet to another country or place, there may be some airlines that require you to carry pet travel insurance in order to help ensure that the pet is covered in case of an injury or illness during transit or after reaching the destination.⁴

You would have to do some research on your own while shifting to a new apartment or traveling with your pet/pets.

How Can Having Pet Insurance Help?

People may not want to make price-based decisions when it comes to the health of their pets. Pet insurance can help here. Coverage provided by pet insurance plans can help ease the economic burden on the pet owners from covered veterinary bills so they can focus on getting the best care for their pets.

How Can Spot Pet Insurance Help?

At Spot Pet Insurance, we offer plans that help cover unexpected accidents and illnesses, including alternate therapies, prescription diets (prescribed to treat covered conditions, not for general weight maintenance), chronic conditions, microchip implantations, hereditary & congenital conditions, behavioral issues, exam fees, specialist visits, and optional preventive care coverage. Additionally, pet parents can get a 10% multi-pet discount on each pet enrolled after the first.

Conclusion

Pet insurance has not been made mandatory by the government, however, there are bodies looking at the industry practices to establish frameworks and standards in the name of consumer protection.

While the government has not mandated it, pet insurance can offer multiple benefits and financial support so that you can get the best care for your pet with less worry of unexpected vet bills.