Lemonade, Inc. is expanding its pet insurance services to Kentucky, despite only a small percentage of pets in the U.S. being insured. As of September 22, the New York-based company has launched its pet policies in a total of 44 states and Washington, D.C. Yael Cohen, senior vice president of Pet and Life at Lemonade, stated that pet owners in Kentucky should have better access to care without dealing with outdated claims processes.
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Kentucky residents can purchase accident and illness coverage, allowing them to customize their deductible, reimbursement rate, and annual limit. Additionally, Lemonade offers add-ons that cover veterinary visit fees, dental issues, physical therapy, behavioral conditions, end-of-life expenses, and preventive care like wellness exams and vaccinations.
Despite a 9% increase in U.S. pet insurance enrollment in 2025, reaching approximately 6.98 million pets, fewer than 5% of dogs and cats are covered. According to the North American Pet Health Insurance Association (NAPHIA), about 6% of dogs and 2% of cats have insurance, mainly due to escalating veterinary costs. Premiums in this sector also rose by 19.7%, totaling around $5.68 billion.
Common claims include routine health issues, particularly gastrointestinal problems. Meanwhile, costs for emergency procedures can reach between $1,500 to $5,000. A 2025 estimate from Rover suggested the lifetime care cost for a dog is around $34,000 and for a cat, approximately $32,000.
Veterinary professionals are grappling with the impacts of affordability on treatment options. An American Animal Hospital Association survey found that 86.1% of veterinary teams modify treatment plans due to client budget constraints. Moreover, 85% of respondents noted that clients often decline care when costs exceed $1,000, and 13% of euthanasias were attributed to owners' inability to pay.
Interestingly, insured pets are more likely to receive recommended treatments, yet only 48.2% of veterinary practices advocate for insurance without prompting from clients, with insured patient rates reported at 7.5% in proactive practices, compared to 3.5% in those that discuss insurance only when clients inquire.