Pet Insurance Rate Changes: What's Moving in March 2026

The Big Picture

Pet insurance premiums across the industry increased an average of 8–12% in Q1 2026, continuing a trend driven by rising veterinary costs and increased utilization rates. This is not unique to pet insurance — the broader P&C market is experiencing similar pressure from medical inflation and catastrophe losses.

Carrier-by-Carrier Breakdown

Healthy Paws

Healthy Paws implemented a 6–9% rate increase effective February 2026 for renewals. New business rates remain competitive, particularly for younger pets. The Chubb backing continues to provide stability, and the unlimited coverage structure means the rate increase is partially offset by the absence of coverage caps that other carriers impose.

Lemonade

Lemonade held rates relatively flat in most states, with increases of only 2–4%. Their AI-driven claims model and younger book of business gives them a temporary actuarial advantage. However, as their book ages, expect this to normalize.

Trupanion

Trupanion’s territory-based pricing model saw increases of 5–15% depending on geographic region. Coastal urban areas (NYC, LA, SF) saw the highest increases due to elevated veterinary costs in those markets. Their direct vet pay feature remains a significant differentiator.

Embrace

Embrace increased rates 7–10% but simultaneously expanded their Wellness Rewards program benefits, effectively softening the impact for policyholders who use preventive care.

Spot and ASPCA

Both carriers saw moderate increases of 5–8%. Spot’s customizable coverage options mean the impact varies significantly based on your specific plan configuration.

What This Means for You

If your renewal is coming up: Don’t panic-switch carriers. Switching means restarting waiting periods and potentially losing coverage for conditions that would now be classified as pre-existing. Instead, consider adjusting your deductible up by one tier.

If you’re shopping for the first time: Rate increases actually make it more important to lock in coverage now rather than waiting. Premiums are based on enrollment age, so every year you delay means a permanently higher base rate.

If you’re considering dropping coverage: Run the math first. A single ACL surgery ($3,000–$6,000), cancer treatment ($5,000–$15,000), or emergency foreign body removal ($2,000–$5,000) can exceed years of premium payments.