More than 64,000 California pet owners are set to face a significant increase in their pet insurance premiums following a 45% rate hike approved by the California Department of Insurance (CDI) for Pets Best insurance policies underwritten by American Pet Insurance Company (APIC). The increase, effective April 2, will affect renewing policies, pushing Pets Best’s average annual base rate for accident and illness coverage to $755.49. The actual cost to policyholders will vary based on factors such as their pet’s age, breed, and health status.
Currently, APIC maintains approximately 64,770 Pets Best policies in California. Notably, APIC has ceased selling new Pets Best policies in the state. The new rates will significantly exceed California’s average pet insurance costs, which stand at $564 annually for dog insurance and $276 for cat insurance, according to data from Insurify and Fletch. Prior to the increase, Pets Best’s average annual premiums in California were $384 for dogs and $204 for cats.
The rate hike is expected to lead to significant policy cancellations. APIC projects over 12,700 cancellations in 2025 alone following the renewal increases. Policyholders with Pets Best coverage through Independence American Insurance Company (IAIC) will not be affected by this rate increase. To determine which insurer underwrites their policy, pet owners should check the declarations page of their insurance documents.
California already has the 12th-highest pet insurance rates in the country, potentially due to the state’s higher cost of living and more expensive veterinary care. The impending rate increase may prompt affected pet owners to explore alternative insurance options, potentially leading to a significant shift in the pet insurance market in California.
