A reader of my book and blog contacted me recently while doing her research before purchasing pet insurance. She had already done an amazing job researching in order to make a wise purchase. She brought up a consideration that, frankly, I hadn't given much thought to. As it turns out, it just might be important to some pet owners.
She lives in California and has a 7 year old dog. After she narrowed down her search to 3 companies, she looked at how much her premium would increase as her dog aged. This is what she discovered:
All three of these companies were favorable when compared to the important factors I outline in my book, but this was an eye-opener.
Company C doesn't raise premiums as the pet ages, so this could be an important factor for some pet owners. You should always be careful when a company advertises that their premiums don't rise as your pet ages. There is one company (not Company C) that keeps premiums level, but as the pet ages, the deductible and co-pay rises effectively increasing your out-of-pocket costs. Also, remember that a company can raise premiums for other reasons e.g. inflation, actuarial data, etc.
Which company did she ultimately go with? She was very tempted to go with Company C because of the no increase in premiums, but to get that premium she would have to get the $500 per-incident deductible. She ended up going with Company A and a $200 per-incident deductible.
So, when getting a quote from a company, you might inquire what the premium would be if your pet were older (use several different ages).
