- Progressive Insurance Enters Pet Insurance Market: Starting in January, Progressive began offering pet insurance directly underwritten by its own companies, covering accidents, illnesses, and routine care with policies in 43 states and D.C.
- Market Growth and Industry Impact: With over 6.4 million pets insured and the industry projected to reach $46.8 billion by 2035, Progressive’s move signals that pet insurance is growing beyond a niche, increasing competition and options for pet owners.
- Florida’s New Pet Insurance Regulations: Florida’s new law classifies pet insurance as property insurance, requiring clearer claim evaluations, transparent coverage details, and separating wellness plans from insurance to protect consumers.
- Pet Insurance Costs and Value for Owners: Average premiums are around $43 for dogs and $23 for cats, but considering the high costs of emergencies like surgery or cancer treatment, insurance can be a financial lifesaver.
- Future Trends and Industry Developments: Progressive’s direct underwriting may encourage other insurers to follow, while state regulations like Florida’s could serve as models as the pet insurance market expands and evolves.
Progressive Insurance began selling pet insurance policies on January 20, making it one of the largest personal auto insurers to enter the pet health market with its own underwritten product. The move comes as U.S. pet insurance premiums topped $4.7 billion in 2024 (a 21.4% year-over-year jump) and Florida rolled out new consumer protection rules for the fast-growing sector.
What Progressive Is Offering
Unlike most big insurers, which simply slap their name on someone else’s policy, Progressive underwrites these plans directly through its own affiliated companies. Companion Protect administers the program. Policies average $47 per month and cover accidents, illnesses, emergency care, surgical procedures, and medications. Policyholders can also add a wellness endorsement for routine care, such as vaccinations, dental cleanings, and annual exams.
Coverage is live in 43 states plus D.C., with a nationwide rollout expected later this year. For context, the average monthly premium across the industry sits at about $43 for dogs and $23 for cats, according to Insurify data from January 2026. Progressive’s $47 average puts it slightly above the industry midpoint, though exact pricing depends on breed, age, and selected coverage options.
Why a Major Insurer Entering the Market Matters
Specialty startups and mid-size carriers have dominated pet insurance for years. Names like Trupanion, ASPCA, Embrace, and Lemonade have carved out the space, while legacy insurers mostly stayed on the sidelines or partnered with third parties. Progressive stepping in with its own underwriting signals that the big players now see pet insurance as more than a niche product.
The numbers back that up. More than 6.4 million pets were insured in the U.S. by the end of 2024, and the North American Pet Health Insurance Association reports that coverage (primarily for dogs) has grown about 20% annually over the past five years. Global market analysts project the worldwide pet insurance industry will increase from $15.9 billion in 2026 to $46.8 billion by 2035. Among large employers with 500 or more workers, 36% now offer pet insurance as an employee benefit, up 22% in five years.
For pet owners comparing options, the increasing competition is a good thing. More carriers means more pricing pressure and more variety in plan design. If you’re shopping for coverage, comparing the best pet insurance companies side by side is a smart starting point, especially as new entrants like Progressive shake up the competitive picture.
Florida Tightens the Rules on Pet Insurance
On January 1, Florida became the 14th state to regulate pet insurance when HB 655 officially took effect. The law, signed by Governor DeSantis in April 2025, amends the state’s insurance code to classify pet insurance as property insurance and establishes a consumer protection framework that previously didn’t exist.
The practical changes matter for anyone buying a policy in Florida. Insurers must now clearly explain how they evaluate and pay claims. They have to disclose how pre-existing conditions are defined and handled. Waiting periods are permitted for illnesses and specific situations, but not for accidents. Policyholders get a free-look cancellation window to review and return a policy if it doesn’t meet their expectations. And insurers cannot require a vet exam as a condition of renewal, nor can they tie eligibility to participation in wellness programs.
The law also targets a common source of confusion: wellness programs marketed as insurance. Under HB 655, wellness plans sold alongside pet insurance must be clearly separated, independently priced, and optional. They cannot be misrepresented as insurance coverage.
Florida isn’t done. A new bill in the 2026 legislative session would require pet insurance agents to complete two hours of continuing education every two years and mandate that insurers submit annual reports to the state’s Office of Insurance Regulation.
What This Means for Your Wallet
Pet insurance premiums have held relatively steady heading into 2026. Insurify’s January data shows dog insurance averaging $43 per month and cat insurance at $23, with only a $1 increase for dogs and no change for cats compared to the previous month. Rates vary sharply by location: Alaska is the most expensive state, the Northeast remains the priciest region overall, and the cheapest premiums are clustered in the Midwest and South.
That said, the average monthly premium figures from the North American Pet Health Insurance Association tell a slightly different story: $62 for dogs and $32 for cats. The gap reflects differences in methodology and the types of plans included, but premiums remain a fraction of what a single emergency vet visit can cost. A torn ACL in a dog can run $3,000 to $6,000. Cancer treatment easily exceeds $10,000. Those are the scenarios where insurance pays for itself many times over.
If you’re trying to figure out what a policy would actually cost for your pet, checking current pet insurance rates based on your pet’s breed, age, and location will give you a more accurate picture than national averages alone.
What to Watch
Progressive’s entry could prompt more legacy insurers to follow suit. State Farm Pet Insurance, Liberty Mutual Pet Insurance, and Nationwide Pet Insurance are already options, primarily through third-party partnerships. If Progressive’s direct underwriting model gains traction, expect others to reconsider their approach.
On the regulatory side, Florida’s framework could become a blueprint for other states. Only 14 states have formal pet insurance regulations on the books, which means the majority of the market operates without standardized disclosure or consumer protection rules. As the industry grows, that gap is likely to narrow.
The bigger trend is simply the math. Veterinary costs keep climbing, pet ownership keeps rising, and only a small fraction of American pets are insured. That combination means more carriers, more regulation, and more options for pet owners in the months ahead.
