Lemonade expands pet insurance to Kentucky as care affordability challenges persist

Lemonade, Inc. is extending its pet insurance business into Kentucky as pet insurance coverage remains limited despite recent enrollment gains.

On September 22, the New York-based insurer said that its pet policies are now sold in 44 states and Washington, DC. The company described the launch in Kentucky as a step toward offering its full product line, which also includes renters, homeowners, car, and life insurance, nationwide.

"Kentuckians love their pets, and they shouldn't have to navigate an outdated claims process to take care of them," said Yael Cohen, senior vice president of Pet and Life at Lemonade, said in a company announcement.¹

Kentucky policyholders can buy accident and illness coverage for diagnostics, procedures, and medications, setting their own deductible, reimbursement rate, and annual limit. Lemonade also sells add-ons for veterinary visit fees, dental illness, physical therapy, behavioral conditions, and end-of-life expenses, as well as preventive care packages for wellness examinations, vaccines, and bloodwork.¹

Pet insurance remains limited as veterinary costs rise

Lemonade, which reports more than 3 million customers in the US, the UK, and Europe, is expanding in a sector that has yet to reach most pet owners.

US pet insurance enrollment rose 9% in 2025 to 6.98 million animals, according to the North American Pet Health Insurance Association (NAPHIA), while premiums rose 19.7% to approximately $5.68 billion.² Despite that growth, fewer than 5% of US dogs and cats are insured, according to NAPHIA. Dogs comprise the majority of insured pets, with about 6% of dogs being insured, compared with about 2% of cats. Many claims stem from routine problems rather than emergencies. Gastrointestinal issues were the most common claim category for both species, a NAPHIA report said.²

The shortfall comes as the cost of pet care is climbing. A 2025 estimate from Rover, a pet care marketplace, put lifetime costs at about $34,000 for a dog that lives to 10 years and $32,000 for a cat that lives to 16.² Emergency surgery for conditions such as bloat or foreign-body ingestion can run $1500 to $5000, according to Emergency Vets USA, a veterinary information site.²

Affordability affects treatment decisions

As veterinary care becomes increasingly difficult for clients to afford, veterinary professionals are also facing challenges in providing the care their patients need. In a survey of 451 veterinary professionals released this year by the American Animal Hospital Association and Pawlicy Advisor, a licensed pet insurance marketplace and brokerage, 86.1% said their teams alter recommended treatment plans every week because clients cannot afford them.³

Eighty-five percent said clients begin declining care at estimates of $1000 or less. Respondents also estimated that 13% of euthanasias at their practices were driven by an owner's inability to pay, unchanged from 2025.³

Most respondents said insured patients were more likely to receive recommended treatment, and about a third said insurance reduced cost-driven euthanasia. Yet only 48.2% said their practices recommend insurance without being asked. Those practices reported a median of 7.5% of patients insured, compared with 3.5% at practices that discuss insurance only when clients raise it.³

References

1. Lemonade continues U.S. expansion with launch of pet insurance in Kentucky. News release. Lemonade Inc. September 22, 2026. Accessed September 24, 2026. https://prnmedia.prnewswire.com/news-releases/lemonade-continues-us-expansion-with-launch-of-pet-insurance-in-kentucky-302886406.html
2. Bautista-Alejandre A. US pet insurance enrollment increased 9% in 2025, but more than 95% of cats and dogs remain uninsured. dvm360. July 28, 2026. Accessed September 24, 2026. https://www.dvm360.com/view/us-pet-insurance-enrollment-increased-9-in-2025-but-more-than-95-of-cats-and-dogs-remain-uninsured
3. McCafferty C. New report examines pet insurance's impact on US veterinary practices. dvm360. September 10, 2026. Accessed September 24, 2026. https://www.dvm360.com/view/new-report-examines-pet-insurance-s-impact-on-us-veterinary-practices