Over the past fifteen years, the pet insurance industry has gone from virtually nonexistent to an estimated $880 million in premium revenues by 2014.  As costs for veterinary services (and, more importantly, demand for veterinary services) has skyrocketed in recent years, so has the demand of insureds attempting to reduce their own costs for such procedures.  Some companies offer monthly premiums for pet medical insurance, with a variable per-incident cap, depending on the amount of the premium.  Such insurance makes pet owners more comfortable, rather than face the potential of an exorbitant bill for pet surgery.  For example, the attached article references a cat undergoing kidney replacement surgery at a cost of $18,000.  A pet insurance endorsement may not cover the entire cost of such a procedure, but it could certainly reduce the final bill. 

http://www.insurancejournal.com/news/east/2012/01/20/231917.htm

Thanks to Brian Gibbons for his contribution to this post.