It’s that time of the year again: you might have already received an envelope from your insurer with the renewal quote and wonder what to do. If the quote seems good to you, you don’t need to do anything – the policy will automatically be renewed. But you might be disappointed…
Why did my pet insurance premium rise by 40%?
It isn’t of any consolation, but you are not alone. Most pet owners see the price of their pet insurance increase year after year. There are several reasons for that:
- Insurance costs are overall increasing. Due to impressive advancements in veterinary treatments, vets can now do more for pets than ever before. These treatments come at a cost though, and they inevitably have an impact on pet insurance premiums.
- Your pet is one year older now. As animals get older the risk of them becoming ill increases, and so the cost of insurance goes up massively. The only exceptions to the rule are pets in their first year of life.
- Your pet got sick during the last year and you made a claim. The claims history might indicate a greater likelihood of an animal needing further treatment in the future. So if your dog was cured for hip dysplasia, for instance, it might more likely incur into other issues next year and you might have to make additional claims.
- Finally, insurance companies are businesses and they try to make as much profits as possible. Some of them are more aggressive than others in increasing their prices and are willing to run the risk of seeing customers leave because of that.
I understand now, but what can I do?
You might come to the conclusion that the renewal price is fair, though higher, and you are happy to stick with your current insurer. They paid back all your claims and your pet is fine now. Generally speaking, if your pet needed treatment for a serious injury or illness in the past, you are probably better off sticking with your current provider. Most pet insurance policies do not provide cover for pre-existing conditions and a new insurer will most likely decline a claim if your pet already had the condition before the policy was taken out.
On the other side, if the increase in price doesn’t seem to be justified, don’t just be tempted and give up! - “Insurance providers are all the same, why bother?” You might question whether you need a pet insurance at all. Pet insurance might be expensive but gives peace of mind - by paying an insurance company a set amount monthly or yearly, you don’t have to worry about covering the costs of vet treatment yourself if your pet becomes unwell or is in an accident.
As with all your finances, it’s usually a worthwhile investment to review your pet insurance regularly, at least once a year, and spend some time to compare different providers and offers. Bought By Many bring people together and help them use their combined buying power to source great value and entirely transparent insurance offers. As Bought By Many member you can get valuable insights and get advantage of favourable deals, year after year.
Who are the best pet insurance providers then?
A good starting point in your research might be our recent posts on The Best Pet Insurance for Dogs and The Best Pet Insurance for Cats. In comparing different options, just remember to check the details of the cover on offer to make sure you’re comparing like-for-like – cheaper is not always better.
Nonetheless, there is no one size fits all. Bought By Many groups people together based on their specific insurance needs. If you want to get advantage of the latest offers we have negotiated, feel free to browse our pet insurance groups and join other pet owners!
If you have comments or questions, feel free to post in the pet insurance forum.