How Are Pet Insurance Premiums Calculated?

Pet health insurance ensures your pet gets the care they need if they are sick or injured, and the coverage saves you money when their veterinary bills start to accumulate. Insurance providers consider many factors when determining your pet insurance premiums, and while some are beyond your control, others can be adjusted to reduce your annual premiums. 

Factors that influence pet insurance premiums

Pet insurance is a risk-based product. The job of insurance companies is to provide coverage while mitigating their loss. You can typically expect to pay higher premiums if your pet poses more risk to the insurance company. Policy-based factors, as well as pet-based factors, are considered when calculating the final cost.

Pet-based cost factors

Factors may vary depending on the insurance company you use, but the most common pet-based variables include:

Policy-based cost factors

Your coverage amount and variables, such as deductibles and reimbursement percentages, are also used to calculate your premium.

Factors that don’t influence pet insurance premiums

You may be surprised to know that certain factors aren’t considered when calculating your pet insurance premium. These include:

Ways to lower your pet insurance premiums

You can’t change your pet’s species, breed, or gender, but you can take some steps to lower your premiums. These include:

Obtaining pet insurance is the best way to protect your pet’s health and wellbeing, but you want to find a policy that is affordable and appropriate for your needs. Whether you have a rottweiler or a Chinese water dragon, a little research will help you find a policy that offers you peace of mind.