Is Pet Insurance the New Health Plan? Why Gen Z Is All In

It used to be that insurance was something you didn’t think about until you had a kid, a house, or a health scare. But Gen Z? They’re flipping the script — and prioritizing pet insurance over many traditional coverage plans. With pet ownership soaring among millennials and Gen Z, especially post-pandemic, a new trend is emerging: insuring furry family members before even considering life insurance or long-term disability coverage.

But why is this happening? And is pet insurance really worth it? Let’s dig into the trend.

The Pet-First Mindset

For Gen Z, pets aren’t just pets — they’re companions, emotional support animals, and even surrogate children. Many young adults are delaying parenthood, marriage, and home buying, but they’re fully committed to their pets. So when their dog swallows a sock or their cat suddenly needs dental surgery, they’re not willing to gamble with their savings.

Enter pet insurance — a safety net that’s becoming as essential as Spotify Premium or a gym membership.

In fact, according to a 2024 study by the North American Pet Health Insurance Association, over 5 million pets in the U.S. are currently insured — and the biggest increase in policyholders is among people under 35. Gen Z is driving that growth.

It’s All About Predictability

One of the key reasons younger consumers are drawn to pet insurance is financial predictability. With student loans, rent spikes, and job instability already on their plates, Gen Zers are looking for ways to avoid financial surprises — especially when it comes to vet bills that can easily reach $2,000–$10,000 for emergencies.

Monthly pet insurance premiums typically range from $20 to $60 depending on coverage, pet type, and breed. For many, that’s a reasonable trade-off for peace of mind, especially when compared to maxing out a credit card during a crisis.

Digital-First Providers Are Winning

Another reason pet insurance is having a moment? The user experience is getting an upgrade.

Companies like Lemonade, Fetch, and Pawlicy Advisor have designed sleek, app-based platforms that allow users to compare plans, submit claims instantly, and manage their policies with a few taps — all things that appeal to a generation that grew up with smartphones in hand.

Some even integrate with tele-vet services, which makes remote consults and reimbursements easier and faster than ever before.

Critics Say “Think Bigger” — But Gen Z Isn’t Budging

Of course, financial advisors might argue that Gen Z should be focusing on building emergency funds, contributing to retirement accounts, or securing more critical forms of insurance (like renter’s or health insurance with broader implications).

But Gen Z sees it differently: they’re insuring what matters to them now — and what fits their lifestyle. Pet insurance offers an immediate, tangible benefit. It’s not just about protection — it’s about values. And right now, the bond with their pets ranks high.

Should You Get Pet Insurance?

If you’re considering pet insurance, ask yourself:

• Can you afford a surprise $3,000 vet bill tomorrow?
• Does your pet have a breed-specific condition that might require care?
• Do you want the freedom to say “yes” to treatment without thinking twice about the cost?

If those questions hit home, it might be time to check out some plans.

Pet insurance isn’t just a trend — it’s a reflection of a generational shift in priorities. For Gen Z, it’s not about doing things the traditional way. It’s about creating a life that feels safe, values-aligned, and supported. And for millions of them, that means making sure their pets are covered, just like any other family member.

So is pet insurance the new health plan? For Gen Z, the answer is a loud, proud “Yes.”