What Will Cause a Premium Increase? - The Trupanion Blog
Underwritten by American Pet Insurance Company

What Will Cause a Premium Increase?

Each year, the pet insurance industry becomes more established in North America. And every year, we collect more data that we use to track trends in pets and pet health. As we collect more data, we are able to more accurately price our premiums so that all policyholders are paying exactly what they should be paying based on the age, breed, and gender of their pet, as well as the location in which they reside.

Our goal is to keep premiums as up-to-date as possible so that policyholders only experience slight fluctuations in premiums over the lifetime of their policy rather than any significant changes. Because we are sending out rate notifications more regularly (once every 12 months), I wanted to update our blog with a fresh explanation of how our pricing works and what causes rates to be adjusted.

How is my premium calculated?
There are a number of factors that go into the calculation of your individual pet’s cost. Those are: age at the time of enrollment, breed, gender, geographical location, and deductible choice. We take all of the pets in a ‘like’ and ‘similar’ groups and price them consistently. For example, if your neighbor had a dog of the same breed, who was of the same age and gender as yours, you’d see your premiums would exactly match if you enrolled at the same time.

What will cause my rate to increase?
There are a few things that will cause your premium to change which include: increase in the average cost and utilization of veterinary care in your area, improvement of veterinary technology available in your area, and the average pet in your pet’s ‘like’ or ‘similar’ groups making more veterinary visits on average. If you see a rate increase, it may be a sign that more pets similar to yours are receiving veterinary care and filing more claims. Conversely, if pets like yours are staying healthier and making fewer vet visits on average, you may very well see a decrease to your premium.

Which factors do not affect my premium?
Pet aging: Your premium will always be based on the age at which you enrolled your pet, no matter how many birthdays your pet has! We don’t believe in penalizing pet owners for such a natural process, so you will not see price increases at set age brackets.

Filing claims: We know that you don’t want or intend for your pet to get sick or injured which is why we do not penalize pet owners with higher rates just for filing a claim.

But my premium increased after I filed a claim. Why?
This is purely coincidental and you would have seen the exact same change to your premium even if you hadn’t filed any claims.

I haven’t filed any claims. Why don’t you just increase rates for those who have filed claims so that my rate can stay the same?
That is not within our company’s values. We know that a pet owner can’t help whether or not their pet gets cancer or allergies or breaks a leg at the dog park. Pet owners, especially those who love their pets enough to insure them, are not reckless and irresponsible and they generally try to keep their pets as healthy as possible and we are here to help with that. Our CEO discusses shared risk and our value proposition on this page.


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