Pet owners in New Jersey are feeling the pinch as pet insurance premiums have increased over the past year. The rate hikes are exceeding the rise in veterinary care costs, placing an additional strain on pet parents’ finances.
An analysis by NJ Advance Media of increase requests submitted to the state revealed that insurance companies’ average premium increase requests in 2024 were about 22%. The state approved an average increase of 13.5%.
For a standard pet insurance plan, this translates to roughly a $7 monthly increase, or $84 annually. However, some customers are seeing much steeper rate hikes. For instance, ManyPets, a pet insurer, received approval for a nearly 47% increase in its New Jersey premiums. Under state law, insurers are required to seek approval for rate modifications from the state Division of Insurance and Banking. If the rates requested are deemed excessive, the state can authorize a more modest increase.
Since January of last year, fourteen different companies have submitted a total of 31 increase requests. These requests represent 21 different insurance plans. Certain companies manage multiple plans, and some have submitted several requests to raise their rates.
Pet insurance functions by reimbursing pet owners for veterinary expenses. Typically, plans include an annual coverage limit, and most do not reimburse 100% of every bill.
Standard pet insurance plans generally cover accidents or illnesses, but they do not include routine vet care, such as vaccinations or annual check-ups, unless a wellness plan is added. Unlike human health insurance, pet insurance plans can charge more based on the pet’s health, age, size, or breed.
According to a November survey of plans by the financial news site MarketWatch, the average monthly pet insurance premium in New Jersey is $51. Individual plan costs can fluctuate significantly based on factors such as coverage limits, reimbursement rates, and the pet’s age, species, or breed.
Nancy Kearney, a spokeswoman for the state Division of Banking and Insurance, indicated that rising pet insurance rates are partially due to an increase in customers utilizing their coverage. Some pet owners also face higher rates due to pre-existing conditions.
“Pet insurance is not treated the same as health insurance. That is, it includes exclusions, and most policies exclude covering pre-existing conditions and hereditary or congenital conditions,” Kearney said. “Additionally, pet insurance companies are permitted to rate for pre-existing conditions in animals, which can result in higher costs.”
According to state data, the largest increase in bills was seen by New Jersey customers of ManyPets, the insurance program managed by Accredited Surety and Casualty. The company requested a 49.2% increase and was ultimately approved for 46.8%, which took effect in July.
“Veterinary prices directly impact our rates. As costs go up, we need to increase our rates to continue providing great coverage to our policyholders,” a ManyPets spokeswoman stated.
“The industry as a whole has reported dramatic increased costs of veterinary care due to several contributing factors including more advanced treatment options, technological advancements in veterinary medicine, inflation and more,” the statement said.
Pets Best, under the American Pet Insurance company, requested a 65.1% increase, the largest increase sought by any insurance company in 2024, and was approved for a 34.7% increase.
Officials from Pets Best did not respond to a request for comment.
Four companies still have pending rate requests, seeking increases ranging from 23.2% to 32.7%.
Some companies requested multiple rate increases for the same plan within a year. American Pet Insurance’s Aflac plan, AXIS Insurance’s Fetch plan, Independence American Insurance’s Pets Best, Figo and PetPartners plans, and Westchester Fire Insurance’s Healthy Paws plan all requested two increases between January 2024 and February 2025. The second increase requests for Figo and PetPartners are still pending.
Federal data shows that prices for all pet services, including veterinary care, have increased by 8.1% between February of last year and this year. Pet services excluding vet care — which includes grooming, boarding, or other pet-related services — increased by 4% during that timeframe. Other costs of pet ownership have remained relatively stable. The cost of food and treats rose 0.4%, while the price of supplies, accessories, and pets themselves decreased by 1%, according to federal data.
