Takeaways
- Pet insurance premiums may increase after a claim depending on various factors and the plan’s specifics.
- Making claims can impact future premiums, deductibles, coverage, and policy renewals.
- Factors that cause pet insurance premiums to go up include age, breed, pre-existing conditions, location, and increased medical costs for pets.
Pet insurance premiums may increase after a claim, depending on factors such as the type and frequency of claims, the insurance company’s policies, and the pet’s age and breed. Some insurers view pets with a history of claims as higher risk and adjust premiums accordingly, while others offer “no-claims” discounts or don’t raise premiums after a single claim.
Pet owners should carefully review policy terms and discuss any concerns with insurers before making a claim to avoid unexpected premium increases.
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In general, most pet insurance companies can increase premiums when making claims. This is especially true for frequent or costly claims. There are exceptions to this, however.
Trupanion and Figo Pet Insurance are two examples of pet insurance companies that openly commit to never increasing your premium due to filing claims.
What happens when you make a claim?
Once your claim has been submitted, the insurance provider will review the information you have provided and determine if the claim is covered under your policy. You can expect this to take several days to several weeks, depending on the provider and the complexity of the claim.
If your claim is approved, the insurance provider will reimburse you for the covered expenses after factoring in your plan’s deductible (the amount you pay before insurance covers a portion of the claim). The reimbursement amount will depend on the terms of your specific policy and the claim amount.
Not all pet insurance policies are the same, so the specifics of this process can differ. Some pet insurance plans will even pay the vet directly.
How do claims impact your pet insurance plan?
Making claims with your pet insurance company can impact your plan in a few ways:
Premiums
Depending on your particular plan and that company’s policies, your monthly premiums could increase when making frequent claims. The same can be said about individual claims that are exceptionally high in cost.
Deductibles
A deductible is an amount you pay before insurance covers any portion of the claim. Most plans have an annual deductible and may even have a per-incident deductible, accounting for the costs associated with one illness or injury in particular.
Making claims on your policy can impact how quickly you meet or exceed your deductible and other coverage limits.
Read more: What is a good deductible for pet insurance?
Coverage
Some policies have a limit on the amount of coverage for certain conditions or treatments. If you have already reached the limit for a particular condition or treatment, any further claims related to that condition may not be covered.
Renewal
It’s important to note that changes like a deductible or premium increase will likely occur at the time of policy renewal, usually once a year. This is when insurers re-evaluate your pet’s age, any changes in their health, and changes in the cost of pet care overall. When it is time to renew your policy, the insurer evaluates the potential risk that your dog’s care needs may increase.
Are there discounts or incentives for not making claims?
Some pet insurance providers incentivize policyholders with rewards and discounts for making few claims (or no claims) during a specific period.
No-claims discount
Some providers will reduce your premium if you do not make any claims.
Cash-back rewards
Some providers offer cash-back rewards if you do not make any claims.
Deductible waivers
Some providers may waive your deductible if you do not make any claims.
Naturally, if you choose to make changes to your policy, like increased coverage limits or wellness add-ons, you can expect to see your pet insurance go up.
Several other factors may cause pet insurance premiums to rise:
Your dog’s…
Age
It is common for pets to develop health issues as they get older. Because they may require vet visits more often, prescription medications, and even surgeries, the costs associated with their care can increase. Insurance companies consider the odds of increased costs when quoting premiums.
Breed
While age-related conditions are common among all types of dogs, some breeds are prone to specific health issues like hip dysplasia or respiratory problems. The combination of breed and age can increase the likelihood of expensive care later in life, meaning two healthy dogs of the same age can have different premiums.
Pre-existing conditions
Pre-existing conditions include injuries, illnesses, and other problems that occurred before the pet insurance policy took effect. Like human insurance, dogs with known conditions will often receive higher quotes for their coverage.
Increased medical costs for pets
There are a few ways that pet care costs can change or increase across the board, including:
Location
Companies will consider the pet’s location when calculating anticipated costs. If you live in an area with expensive veterinarian services, you can expect to pay more for coverage.
Inflation
When goods and services become more expensive in general, you can expect these economic conditions to influence the cost of pet insurance.
In fact, between 2022 and 2023, the cost of veterinarian services alone increased by 8.4%.
Read more: How much does pet insurance cost?
FAQs:
Filing a claim on your pet insurance policy can result in a higher premium upon renewal. Insurance companies view those who have made claims before as higher risk.
When you file a claim, the insurance company pays for the treatment (minus any deductible or co-pay) but also notes the claim on your pet’s medical history.
This medical history is later used to calculate your premium when the policy is up for renewal.
Making multiple claims on your pet insurance policy can increase your premium because pet insurance companies base their premiums on the risk of paying out claims. Each claim you make gets recorded in your pet’s medical history, which is used to calculate your premium when your policy is up for renewal.
To avoid premium increases, only make necessary claims for significant expenses. Raising your deductible or co-pay can lower your premium while ensuring the best policy value. Consider exploring policies with fixed premiums for the life of your pet when shopping for pet insurance.
While most pet insurance companies could increase premiums when making claims, some do not. Trupanion and Figo Pet Insurance openly commit to never increasing your premium due to filing claims.
It’s worth comparing pet insurance policies to find one that is best for you, which may provide better peace of mind when it comes to making claims.
The number of claims you can make without affecting your pet insurance premium depends on your policy and insurer. Even policies without a specific claim limit can increase your premium if you make frequent claims. This is because each claim is recorded in your pet’s medical history, and insurers may view you as a higher risk if you frequently make claims.
No two claims are the same
Just like your pup, each pet insurance policy is unique.
Reviewing your policy documents to understand the claims process and any limits that may apply is important. Plus, it never hurts to contact different insurance providers to ask them specific questions when shopping around for the best policy.
Are you still wondering whether or not pet insurance is worth it? Start with our guide on how pet insurance works.
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