Your Pet Insurance Guide

Insight Into How Pet Insurance Companies Set Premiums

This is an interesting article because it gives us some insight into how pet insurance companies use actuarial data when setting premiums for their policies. I don't actually know a lot about it, but when I've asked questions of pet insurance company representatives about their company's actuarial data, they are usually very secretive when it comes to discussing specifics.

In fact, companies use this data to adjust premiums from time to time. If you receive a notice that your premium is going up or down, this is probably the reason. I've read in the past year that some pet owners found that their premiums increased as much as 50%, and I've also read where some pet owners (same company) received the news that their premium actually decreased slightly.  

Factors That Affect The Cost of Pet Insurance

 

Pet insurance premiums are what many pet owners focus on when investigating whether to purchase pet insurance for their pet. There are many factors that affect the cost of pet health insurance. 

 

1) Geographic location

Where you live affects the premium you will pay to insure your pet. For example, pet insurance premiums are generally higher in California than in Tennessee because veterinary fees are higher in California than Tennessee. 

 

2) The breed of your pet

Certain breeds of dogs or cats are known to have more health problems than other breeds, so the pet insurance company calculates this factor into the premium you'll pay to insure your pet.