Why Does Pet Insurance Keep Going Up?

Responsible pet parents know that pet insurance can help them take the very best care of their fur baby should an unexpected accident or illness arise. But many pet parents have been wondering, “Why does pet insurance keep going up?” 

There’s no denying that pet insurance can save you a ton of money toward costly vet bills. But watching your monthly premium increase, even by just a few dollars, can be cause for concern, if not utterly frustrating. According to recent data from the North American Pet Health Insurance Association (NAPHIA), pet insurance premiums rose an average of 24.2% year-over-year from 2016 to 2020.

What Causes Pet Insurance to Go Up?

The following are some of the most common reasons your pet insurance monthly premiums may have gone up:

Pet Insurance Companies are For-Profit Businesses

Let’s talk about the elephant in the room: pet insurance companies are in business to make a profit. Yes, they genuinely care about pets and pet parents. But at the end of the day the only way they can stay in business is if they make more in profits than they spend in operating costs. 

Whenever a pet insurance company feels any kind of “threat” that they may be at a loss, they take steps to increase premiums to offset their costs. What kinds of events or situations make an insurance company feel financially threatened?

• General Inflation

We’re all feeling it, including pet insurance companies. As inflation rises, so do companies’ operating costs and they’ve got to make up that loss somehow.

• You Filed one or More Claims in a 12-Month Period

If your fur baby got sick or had an accident and you subsequently had to file one or more expensive claims, you may find your premium goes up as a result. This is because the provider believes further expensive treatments may be necessary in the near term. Raising your premium creates a safety net for any extra expenses the company may incur. 

• Your Pet is Getting Older

Speaking of safety nets, most pet insurance providers will increase monthly premiums as your fur baby ages. As pets get older, they experience more and more health issues, which become costly to you and subsequently the insurance company. To offset costs, insurance providers will increase your premium as your pet ages. 

We did a bit of research to see if there were any pet insurance providers that did NOT raise premiums as pets age and we did actually find one: Trupanion. Trupanion is also known for being one of only a handful of providers that pay the vet directly, so you aren’t responsible for paying that huge bill upfront yourself. They also offer reimbursement rates of 90% and there are no annual limits on how much you can be reimbursed. 

Learn more about Trupanion pet insurance.

Advancements in Veterinary Treatments

The good news for you and your pet is that veterinary care has truly advanced in the last 20 years. We have seen great improvements in diagnostic tools, cancer treatments such as immunotherapy, and preventive programs like genetic testing. This is helping pet parents keep their fur babies healthy and around for much longer. 

The bad news for insurance providers is that all of these advancements come with a hefty price tag. Insurance companies need to be able to raise their prices in order to keep pace with these new medical trends. 

Loss of Existing Discounts

Often when signing up for a new policy, you may be offered some enticing discounts that lower your monthly premium for a time. When you renew at a certain point, these original discounts may drop off and you’ll notice a price increase.

Some pet parents may start out with a bundle discount or one for multiple pet policies. Should pets or other policies be removed, the premium will then go up.

Pet Insurance Policies May Be Canceled at Any Time

Why does pet insurance keep going up? As you can see there are a variety of reasons. 

If you are not happy with your current monthly premium, it pays (literally) to do some comparison shopping to see if you can get a better rate. The beauty of pet insurance is that you can cancel your policy at any time and switch to a more affordable one.

Pet Insurance Review makes it easy-peasy to compare top insurance providers.

Before changing providers, you may want to call your current one to ask if there are any discounts you aren’t currently taking advantage of. In addition to bundle policies and multi-pet discounts, some providers offer senior discounts and discounts for military personnel and vets. 

References:

https://naphia.org/industry-data/section-3-average-premiums/

Disclaimer

The information contained on this blog is intended for informational and educational purposes only and should not be construed as medical advice. It is not a substitute for professional veterinary care. Always consult with your veterinarian before making any changes to your pet's health care or treatment plan.

The authors of this blog are not veterinarians and do not claim to be experts in pet health. The information provided here is based on our own experiences and research, as well as information from reputable sources. However, we cannot guarantee the accuracy or completeness of this information.

We encourage you to do your own research and consult with your veterinarian before making any decisions about your pet's health.