Demand for Pet Insurance Rises as Majority Owners Underestimate Cost of Care

Costs associated with pet care continue to rise, according to consumer financing company Synchrony’s 2025 Pet Lifetime of Care Study, which found an increase of 10% for dogs and close to 20% for cats since 2022.

Expanding on original research conducted in 2022, the recent study surveyed nearly 5,000 pet owners and found that nearly 8 out of 10 pet owners underestimate the cost to care for their pet over a lifetime.

Data from this study shows a clear upward trend in lifetime pet care costs compared to the study in 2022, noting that caring for a dog over 15 years now costs $22,125 to $60,602, an average increase of 11.65%.

For cats, the rise is even sharper – $20,073 to $47,106, an average increase of 19.4%. The small companion animal expense range, based on a 6-year lifespan, is $7,600 to $14,938 (first-year results).

The research, conducted on behalf of Synchrony’s pet and vet financial solution, CareCredit, highlights the gap between perceived and actual costs.

Almost three out of four (74%) pet owners say they have faced unexpected pet care costs exceeding $250, while only 31% of pet owners admit they can comfortably manage a major pet expense.

“Pets enrich our lives in countless ways, and it’s natural for pet owners to want to provide them with the best possible care,” said Jonathan Wainberg, senior vice president and general manager, Pet, Synchrony. “Our research shows that while 60% of dog owners, 61% of cat owners and 59% of ‘pocket-pet’ owners see them as family, many are unaware of the true financial commitment.”

Financial worry related to these expenses is growing, rising from one in three pet owners in 2022 to nearly one in two in 2025, highlighting the increasing economic impact of pet care.

This has led to a demand for pet insurance and credit cards.

Of those surveyed, 58% of pet owners have used a credit card for pet care, while only 20% of dog, cat and mixed pet owners have dedicated savings or insurance for pet emergencies (24% for small companion pet owners).

Committed to supporting access to pet care for all animals in the family, the latest study includes an analysis of the costs associated with small companion animals. Owners of these “pocket pets” significantly underestimate the cost, the survey showed. While the study estimates $7,600-$14,938 over a 6-year lifespan, owners expect to spend less than $3,000 – less than half the minimum reported by the survey.

Dog owners estimate the lifetime care of their pet to be about $8,000, significantly lower than the average 15-year total lifetime cost of dog ownership estimated in the study, a range of $22K-$60K. This is up from 2022, when the cost was $20K-$55K, a rise driven by increased technology adoption (GPS collars, smart feeders, tele-vet platforms) and wellness plans.

Dog owners are investing more in health insurance ($198 to $313 per year) and wellness plans ($422 to $701 per year), reflecting a growing emphasis on preventive and routine care.

Cat ownership is on the rise in the U.S., along with estimated costs.

The American Pet Products Association’s (APPA) 2025 State of the Industry Report revealed that 49 million U.S. households (37% of all homes) now include a cat, up from 30% of households in 2024.

Cat owners predict less than $6,000 in expenses, while the actual minimum is closer to $20,000 for an average lifespan of 15 years.

The new research found tech investment nearly doubled, with annual costs increasing from $185–$385 to $350–$480, as cat owners embrace smart products and services such as automated litter boxes, feeders, and telehealth tools.

Topics Trends