Not much changed in the cat insurance product itself this September — what changed is the price and, in a handful of states, the rulebook. Premiums for cat accident-and-illness policies rose roughly 12.6% into 2026, Florida's new pet insurance statute took effect January 1, and New Jersey's takes effect January 1, 2027, while most cat owners live in states with no pet-specific rules at all. Pet insurance here means an accident-and-illness policy: you pay the vet, submit a claim, and the insurer reimburses a percentage after a deductible. Below is what moved, what it costs, and the two or three things worth checking on your own policy before renewal.
Table of Contents
- The headline number: cat premiums are up about 12.6%
- Why the price went up
- What actually changed in the law, and where
- Cats are still the under-insured half of the market
- What to check before your next renewal
- Frequently Asked Questions
The headline number: cat premiums are up about 12.6%
The North American Pet Health Insurance Association (NAPHIA), the industry's trade group, puts the average US accident-and-illness premium for a cat at roughly $36 a month, or about $435 a year. That figure sits in NAPHIA's average premiums data and represents an increase of about 12.6% from 2024. Averages hide a lot.
Your own renewal depends on your cat's age, your ZIP code, your reimbursement percentage and your annual limit — an eleven-year-old cat in a high-cost metro will not renew at $36. Treat $435 a year as a floor for budgeting a mid-tier policy, not as a quote. The increase is not unique to cats, and it is not arbitrary. Carriers price against what veterinary care actually costs, and that cost is climbing faster than everything else you buy.
Why the price went up
US Bureau of Labor Statistics figures show veterinary service prices rose 5.1% year over year in June 2026, against roughly 2.7% general consumer inflation. When the thing being reimbursed inflates at nearly twice the general rate, premiums follow with a lag — and they tend to follow in steps, at renewal, rather than smoothly. Carrier financials show the same repricing from the inside. Trupanion's Q2 2026 results put revenue at $392.9 million, up 11% year over year, with monthly revenue per subscription pet at $87.44 — up from $79.93.
That is the same book of business costing more per animal, not just more animals enrolled. This matters for how you read a renewal notice. A double-digit increase in 2026 is not necessarily a sign your insurer singled out your cat or penalized you for claiming; it is close to the market-wide move. Shopping around may still help, but expect competitors' quotes to have moved too.
What actually changed in the law, and where
Three state-level developments define the regulatory picture as of september 2026: The NAIC model act these laws borrow from is a template state legislatures adopt voluntarily. Its core ideas are plain-language disclosure of what is excluded, clear definitions of preexisting conditions and waiting periods, and a requirement that sellers actually understand the product.
The honest limitation: this is a minority of the country. Only about 14 states layer pet-specific rules on top of general insurance law, and roughly 27 have never formally considered the NAIC model act. Most cat owners got no new statutory protection this year and should not assume a regulator is policing their policy's fine print.
- **Florida — in force now.** HB 655, signed in April 2025, took effect January 1, 2026. It imposes disclosure requirements modeled on the National Association of Insurance Commissioners (NAIC) model act, plus rules on preexisting-condition handling and training for the agents who sell the policies.
- **New Jersey — passed, not yet effective.** The Pet Insurance Act was enacted January 12, 2026 as P.L. 2025 c.224 and takes effect January 1, 2027, covering disclosures, waiting periods and producer training.
- **New York — proposals only.** Bills A.11164 and S.10225 would establish a comparable framework, but as of September 2026 they are introduced, not enacted. A New York cat owner gains nothing from them today.
Cats are still the under-insured half of the market
NAPHIA reports 7.6 million pets insured across North America, with US enrollment up 9% year over year. But the split by species is lopsided: 2.29% of US cats carry coverage versus 5.99% of dogs, and cats make up just 25.1% of US insured pets — up from 23.5% a year earlier. Overall US penetration is 4.27%, which trade coverage frames as a "protection gap" rather than a saturated market.
In plain terms: more than 95 of every 100 US pets are uninsured, and the industry reads that as room to grow rather than a verdict that the product isn't worth buying. For a cat owner, the practical read is twofold. Cat policies are typically cheaper than dog policies, so insurers have room to compete for you — but the thin cat book also means fewer cat-specific plan designs and less price history to compare against.
What to check before your next renewal
A renewal notice is the one moment each year when the terms are in front of you. Work through these: One thing not to do: cancel coverage on an older cat to save the increase, then try to re-enroll later. Conditions diagnosed in the gap become preexisting, and premiums for senior cats are higher than for the same cat a year earlier.
- **Compare the new premium to the old one as a percentage.** If it is near 12–13%, you are roughly at market. Far above that, ask the insurer what drove it — age band, regional vet costs, or claims.
- **Confirm your annual limit still matches current vet prices.** A limit set three years ago has quietly lost purchasing power at 5%-a-year vet inflation.
- **Re-read the preexisting-condition language.** Anything your cat has been treated for — or even noted for — before enrollment is normally excluded permanently, and switching carriers restarts that clock.
- **Check waiting periods before switching.** A cheaper competitor that imposes a fresh waiting period leaves a gap where neither policy pays.
- **If you live in Florida, expect fuller disclosures now.** If you live in New Jersey, expect them at renewals from January 2027.
Frequently Asked Questions
Does Florida's new law apply to a policy I bought before 2026?
HB 655 governs pet policies sold to Florida residents and took effect January 1, 2026. How it reaches an in-force policy depends on your renewal terms, so ask your insurer directly which disclosures now apply to your contract.
Is a 12% increase a reason to switch carriers?
Not on its own — the increase is close to market-wide. Switching only pays if a competitor's quote beats yours after accounting for a new waiting period and the loss of coverage for anything diagnosed under the old policy.
Why is cat coverage cheaper than dog coverage but still rising fast?
Cats generally cost less to treat, so the base premium is lower. The increase tracks veterinary service inflation of 5.1% year over year, which hits both species' pricing regardless of the starting point.