As you read this, there's a good chance a furry friend is nearby. Maybe there's a cat on your lap or a dog waiting patiently—or not—for its next walk. If so, you're in good company. About 70% of U.S. households, or more than 90 million families, currently have a dog or cat, according to the American Pet Products Association.

However, only about 6% of these pets are currently covered by insurance. That's a lot of unprotected paws. It's also a big opportunity for you, especially when compared with more saturated markets.

Policies Worthy of a Pet Project

Despite the low number of existing pet policies, we know many people consider their pet to be part of the family and are willing to do what's necessary to care for them. In fact, 76% of pet owners said they would take on debt to pay for medical care for a dog or cat, according to a 2023 ValuePenguin survey.

And since the cost of veterinary services haven't been immune to recent inflation, according to AP News, pet insurance lets people focus on getting the best care rather than on the cost alone. When compared with paying out of pocket, pet coverage is a bargain. Your customers just may not know it yet.

Selling pet coverage also: 

• Adds value to your book.
• Allows you to share your expertise and strengthen customer relationships.
• Offers customers a chance to bundle policies, a proven way to boost retention.
• Supplies you with a steady source of new leads and cross-selling opportunities.
  

Now that we know why pet insurance makes sense for many people living with a dog or cat, here are some ways to broach the subject with your policyholder.

How to Effectively Sell Pet Insurance

Pet insurance can be easier to bring up in conversation than other topics because people generally love talking about their pets. When discussing other policies with customers, simply asking whether they have a dog or cat is a great way to get the furball rolling.

Also, if pet ownership needs to be disclosed when applying for a homeowners policy, that's a natural opportunity to raise the subject. Or if you hear a dog barking during your call, you can ask if they've ever considered pet insurance. If they answer yes, you can provide a quote. If they say no, move on to other probing questions such as:

• “Are you a first-time pet owner?" If they are, you can help educate them on what to expect. If they have experience with pets, you can ask about their average annual veterinary costs.
• “What are your expectations about vet costs?" Let customers know that, on average, one in three pets needs unexpected vet care each year and that a pet owner is handed a bill for more than $3,000 every six seconds. That's a ton of chew toys! It also makes the average pet insurance premium look miniscule in comparison.
• “How much are you willing to spend if your pet needs serious care?" This question can help you set expectations regarding annual premiums. You can also share a story or anecdote about a vet experience that illustrates how expensive it can be.

How your customers answer these questions can help guide you to offer a quote for the right product for their needs. It's also your chance to educate them and get them thinking about the true costs of pet ownership if they haven't already. Finally, study the coverage details of your carriers so you're ready to answer in-depth questions as they come up in conversation.

However, you broach the subject, letting customers know about pet insurance can help them avoid unexpected vet bills while also building your business.