There are over 150 million pets in the U.S., and Americans spend over $40 billion on their pets annually, according to a recent Insurance Information Institute study.

The Progressive benefit has been in place since Sept. 6, and it’s still too soon to determine if the company’s undetermined cost of offering it will be offset by better sales.

Auto insurance generally provides property, liability and medical coverage.

Typically, an insured person’s collision coverage pays for the damage to the insured’s vehicle in a collision or other kind of accident, such as when a driver loses control and a car overturns. But usually there’s no payment for pets who may be in the car.

Liability coverage would kick in for any pets hurt in a car other than the insured’s.

The new Progressive benefit is not pet insurance, which some people obtain to help them pay veterinarian costs.

A Progressive strategist said the company saw a pets benefit as an auto insurance market opportunity.
Progressive is the third-biggest auto insurer, ranking behind State Farm and Allstate and slightly ahead of National Indemnity (Berkshire Hathaway), which includes GEICO.

State Farm and Allstate confirmed a pets benefit is not in the collision part of their policies. A message was left with a GEICO spokeswoman.

Progressive’s pet benefit is available in 46 states and the District of Columbia; it’s not yet available in North Carolina, New Hampshire, New York and Virginia, but the company hopes to offer it in those states soon.