My pet insurance costs have gone way up even without making any claims. I did 6 things to get the best price.
The author, Rob Phelan.
As many pet owners know, adding a furry friend to the family is a joy, but it comes with financial responsibilities that can add up quickly. My wife and I learned this firsthand when we decided to adopt two cats. I’m a financial educator, and I’m an advocate for considering the total cost before making major decisions, but we didn’t fully anticipate the ongoing costs of pet ownership.
For us, pet insurance was an essential part of bringing our cats into the family. We knew that, like human healthcare, veterinary care could be prohibitively expensive, and we wanted to be prepared in case of illness or accidents.
After exploring various options, we settled on Embrace Pet Insurance. In 2022, we were paying just over $45 a month for a male kitten and a 1-year-old female cat, with a $100 deductible and 90% coverage.
Our pet insurance costs have risen fast
Fast-forward two years, and our monthly premium has surged to nearly $70 — a 47% increase — despite raising our deductible to $500 and lowering our coinsurance to 80%. Every year, our renewal comes with a double-digit percentage increase, far outpacing national inflation rates, and all without having made any claims.
Had we chosen to maintain our original coverage level, our premium would now be more than double what it was just two years ago. Negotiating with Embrace hasn’t yielded any relief; the company stands by its reputation as one of the best in the business, leaving us with the option of either accepting the rate hike or finding a new provider.
Embrace cites several reasons for rate increases on their website: veterinary inflation, expired discounts, your pet’s age, and breed-related risks. However, when we reached out for clarification, we were met with no clear reason for the increase, leaving us with few choices other than to accept the higher premium or start over with a new insurer.
I’ve found 6 ways to get the best value
If you find yourself facing a similar situation, here are some steps you can take:
- Compare providers annually: As with any insurance, it’s crucial to shop around each year to see if you can find a better rate. We compared quotes from Lemonade, Spot, and Fetch, only to find that their rates were similar to Embrace’s.
- Ensure you’re comparing like for like: When evaluating different insurance providers, make sure you’re comparing apples to apples. Check that the list of covered events, deductibles, maximum limits, and coinsurance percentages match your current policy before making a switch.
- Explore discounts and bundling options: See if your other insurance providers offer a discount for bundling pet insurance with existing policies. Sometimes, a small discount can make a big difference.
- Consider self-insuring for minor costs: You might consider setting aside a savings fund for smaller, more routine veterinary costs and opting for a higher deductible plan to reduce your premium. In this case, insurance serves as protection against catastrophic events, while you self-insure for the rest.
- Invest in preventive care: Regular wellness checks, a balanced diet, and exercise can go a long way in reducing the likelihood of needing to file an insurance claim, potentially lowering your premiums over time.
- Leverage loyalty and negotiate: When faced with a rate increase, your first step should be to call your insurance provider. Speak to a customer retention representative if possible, and emphasize your loyalty and claim-free history. It’s always worth asking if they can offer any concessions to keep your rate down.
If your insurance provider isn’t willing to budge, you may be left with no choice but to accept the increase or switch providers. However, by taking the time to explore your options and negotiate, you’ll be better prepared to make the decision that’s right for you and your pets. After assessing our choices, we decided we were satisfied with Embrace’s service and the convenience of bundling with USAA (our home, life, and auto provider), and we decided to stay.
