As a financial educator, Rob Phelan and his wife learned firsthand about the financial responsibilities of pet ownership when they adopted two cats. In 2022, they opted for Embrace Pet Insurance, paying $45 monthly for a male kitten and a 1-year-old female cat with a $100 deductible and 90% coverage. However, by 2024, their monthly premium had surged to nearly $70 – a 47% increase – despite raising their deductible to $500 and lowering their coinsurance to 80%.
The Rising Cost of Pet Insurance
Phelan’s experience mirrors a broader trend in pet insurance: rapidly increasing premiums. Every year, his renewal came with double-digit percentage increases, far outpacing national inflation rates. Had he maintained the original coverage level, the premium would now be more than double the initial cost. Embrace cited veterinary inflation, expired discounts, pet age, and breed-related risks as reasons for rate increases, but couldn’t provide a clear reason for Phelan’s specific hike.
Negotiating with Embrace
When Phelan reached out to Embrace for clarification, he was met with resistance. The company stood by its reputation as one of the best in the business, leaving him with two options: accept the rate hike or find a new provider. This experience led Phelan to explore strategies for managing pet insurance costs.
6 Ways to Get the Best Value in Pet Insurance
- Compare Providers Annually: Shopping around each year can help identify better rates. Phelan compared quotes from Lemonade, Spot, and Fetch but found similar rates to Embrace.
- Ensure You’re Comparing Like for Like: When evaluating different insurance providers, check that the covered events, deductibles, maximum limits, and coinsurance percentages match your current policy.
- Explore Discounts and Bundling Options: Some insurance providers offer discounts for bundling pet insurance with existing policies. Phelan benefited from bundling with USAA.
- Consider Self-Insuring for Minor Costs: Setting aside a savings fund for routine veterinary costs and opting for a higher deductible plan can reduce premiums.
- Invest in Preventive Care: Regular wellness checks, a balanced diet, and exercise can reduce the likelihood of needing to file a claim, potentially lowering premiums.
- Leverage Loyalty and Negotiate: When faced with a rate increase, call your insurance provider and emphasize your loyalty and claim-free history. Phelan negotiated with Embrace but ultimately decided to stay due to their service and bundling convenience.
In the end, Phelan chose to continue with Embrace due to their satisfaction with the service and the convenience of bundling with their other insurance policies through USAA. This experience taught him the importance of regularly reviewing insurance options and negotiating with providers to manage rising costs.
