Are all pet insurance companies really the same, or do they offer different benefits?
I’ve been working in the insurance industry for nearly 20 years, so I get how premiums and rate increases work. My dog has been covered by TruPanion since we adopted him at 5 months, and now he’s 2.5 years old. We haven’t filed any claims, and he’s up-to-date on all his vaccines and check-ups.
However, in just two years, our premium has jumped from $85 a month to $111, and now, with the policy renewal coming up, they want $143 a month. I’m hesitant to switch providers, but this increase feels extreme. Does anyone know if there are better options out there? Is it worth switching?
Not all pet insurance companies are the same, but many have raised premiums significantly due to inflation and increasing vet costs, or they’ve dropped policies altogether. The industry is undergoing a major price correction, and you can see evidence of this in recent posts here.
For example, Nationwide dropped 100,000 policies, while Trupanion has been increasing rates year over year, sometimes by 100% or more. PetsBest has slowed down claims processing and made it difficult for people to get paid. Some users have reported that Embrace quadrupled their rates, Fetch downgraded coverage without notice, and HealthyPaws is also raising rates and adding more requirements. Even Lemonade, which had not increased rates for a while, has raised theirs recently.
Pet insurance is definitely facing some tough times right now, and since there are fewer consumer protections for pet insurance compared to other types, we’re feeling the impact more directly.
One important reason to consider staying with your current insurer is if your pet has pre-existing conditions that other companies might not cover. Pre-existing can refer to any sign or symptom of a condition, not just a formal diagnosis. So, it’s a good idea to review your vet records to ensure nothing has been noted if you’re thinking about switching.
Trupanion typically offers high coverage levels and is one of the larger companies with substantial market presence. I’m hopeful they can navigate this challenging period better than some others, but that’s just my personal perspective.
Has your pet visited the vet for other issues like allergies or illnesses? The main reason people advise against switching insurance is that a new provider might label your pet’s condition as pre-existing if it’s been documented in vet records from previous visits.
Healthy Paws does increase premiums annually, but the jump you’re seeing seems quite steep for such a young dog. If you decide to switch, make sure your dog hasn’t been seen by a vet for any symptoms at all. A condition can be considered pre-existing not only if there’s a formal diagnosis but also if any related symptoms have been noted by a vet.
The differences between pet insurance companies usually come down to things like pricing, coverage options, and customer service. Personally, I almost chose Spot because they offered really comprehensive basic coverage. However, I decided on Figo instead because Spot is relatively new (only about 5 years old), so they’re not as established as Figo. Plus, Figo was a bit cheaper since they offer a discount for Costco members, which made it a better deal for me.
If your dog doesn’t have any pre-existing conditions (as others have mentioned), I’d definitely recommend shopping around. In my family, we have two dogs covered by Figo, a 6-month-old small breed mutt and a 3-year-old German Shepherd mix and their combined rates are lower than what Trupanion was charging for just one dog. That’s pretty surprising to me. Good luck with your search!
Consider keeping Trupanion and just increasing your deductible. If you switch insurers and your vet has noted any issues like an upset stomach or sneezing, the new company might exclude coverage for anything related to gastrointestinal or respiratory issues. I recently raised my deductible to $600, which reduced my monthly costs by $35 per pet. I mainly use Trupanion for major expenses. Just a suggestion.
These insurance companies generally treat pets as property rather than providing comprehensive health coverage. It’s reminiscent of the pre-ACA health insurance era, where coverage could be easily dropped and pre-existing conditions were often excluded, with many services like preventive dental care not covered at all. While there may be a few exceptions, this issue is widespread across different carriers.
Rising premiums as pets age is common (sometimes up to seven times the original amount), and the shift to accident-only coverage around age 12 is particularly disappointing.
A combination of self-insuring with a high deductible and high copay policy might be the best approach. You should anticipate spending around $2,000 per year per pet, covering premiums, copays, and deductibles, though this doesn’t account for all the additional expenses not covered by the insurance.