Helping pets every day |
Claim paid $2,568.40 on 5/22/2012 for Coconut, Dog age 7 Mixed Breed from San Diego, California | Claim paid $1,273.81 on 5/22/2012 for Daisy, Dog age 4 Mixed Breed from Phoenix, Arizona | Claim paid $2,823.04 on 5/22/2012 for Duncan, Dog age 5 Labrador Retriever from Victoria, British Columbia | Claim paid $3,870.00 on 5/22/2012 for Maverick, Dog age 2 Labrador Retriever (Chocolate) from Marysville, Washington | Claim paid $1,224.49 on 5/22/2012 for BENTLEY, Dog age 6 Miniature Schnauzer from Mississauga, Ontario | Claim paid $2,874.60 on 5/22/2012 for Mister, Dog age 6 French Bulldog from San Francisco, California | Claim paid $2,292.51 on 5/22/2012 for Oreo, Dog age 3 Border Collie from Victoria, British Columbia | Claim paid $796.36 on 5/22/2012 for RAMZES, Dog age 4 German Shepherd from LAVAL, Quebec | Claim paid $1,784.26 on 5/22/2012 for Chewy, Dog age <1 Maltipoo from Calgary, Alberta | Claim paid $775.49 on 5/22/2012 for Whiskey, Dog age 3 Shih Tzu from Fremont, California | Claim paid $802.62 on 5/22/2012 for Sandy, Dog age 1 Golden Retriever from Carlsbad, California | Claim paid $1,039.31 on 5/22/2012 for Bunny, Dog age <1 Chihuahua from Fort Lauderdale, Florida | Claim paid $1,353.60 on 5/22/2012 for Brisket, Dog age <1 French Bulldog from San Francisco, California | Claim paid $1,907.22 on 5/22/2012 for Desmond, Dog age 5 Mixed Breed from Scarborough, Ontario | Claim paid $588.83 on 5/22/2012 for Mister, Dog age 6 French Bulldog from San Francisco, California | Claim paid $2,173.39 on 5/22/2012 for Duke, Dog age 4 Boston Terrier from Newport Beach, California | Claim paid $3,188.25 on 5/21/2012 for Bruiser, Dog age 11 Boston Terrier from Mountlake Terrace, Washington | Claim paid $666.09 on 5/21/2012 for Binti, Dog age 10 Poodle from Seattle, Washington | Claim paid $912.29 on 5/21/2012 for Gabe, Dog age 4 Greyhound from Midlothian, Virginia | Claim paid $501.29 on 5/21/2012 for Jitterbug, Dog age 2 Rhodesian Ridgeback from Novato, California |
Coinsurance, Deductibles, & Limits
What are they and how do they differ?
Deductibles are put in place to limit the frequency of pet insurance
claims. In most cases, the frequency of claims increase as a pet becomes older and
this is why some pet insurance companies increase the deductibles as the pet ages.
Trupanion does not require deductibles for veterinary medical care but has the pet
owner pay their veterinarians examination fees instead. These fees act as a deductible
but they are not in the control of the insurance company.
Coinsurance is the percentage of a claim that a pet
owner pays or contributes towards the bill. Pet insurance companies, including Trupanion,
use this control mechanism as an effective tool to ensure the appropriate diagnostic
tests, surgeries, and medications are being used.
A pet medical insurance company reduces the effectiveness of co-insurance if their goal
is simply to lower their cost of claims.
Trupanion pays 90% of all diagnostic tests, surgeries, and medications
if an insured pet becomes sick or injured.
Limits are put in place to decrease the exposure of large
claims.
Summary - Coinsurance, Deductibles, & Limits.
These are the three basic tools that pet insurance companies and their actuaries
use to decrease the cost of claims to an existing plan. They may decide to implement
these across the board (to all insured) but in most cases they implement these tools
when a person starts making claims or as the pet ages.
Another method used to decrease the cost of claims is when a new plan is designed with the intention of limiting
coverage by adding exclusions to a policy. For example, a very simple way
to limit the coverage is to insure for "accidents" but exclude all "illness".
