No, you’re not imagining it.
Your pet insurance premium DOES cost more to renew each year.
Understandably, this annual price hike fills some “pawrents” with doubt – are they being taken for a ride?
If you’re having second thoughts about renewing your policy, please know your provider isn’t ripping you off by lifting their premiums every 12 months, as long as it’s a reasonable jump. Most providers need to increase their annual premiums by a small amount to cover the rising cost of veterinary care, otherwise they wouldn’t be able to give policy-holders a safety net.
The exact amount of your premium hike is determined by risk factors associated with your pet (and its breed); as well as external factors such as inflation rates in Australia. How much does pet insurance increase each year.
This article explains the reasons why reputable pet insurance companies need to charge a little extra every year; so you can make an informed decision about whether or not you want to remain insured.
Five reasons why your pet insurance premium increases every year:
REASON ONE: Claims history
It’s likely your insurance premium will increase if you’ve lodged costly medical claims throughout the year, because your pet needed veterinary care. Why? There’s a higher risk that Fluffy will need medical treatment in the upcoming 12 months, due to their claims history.
To this end, the price hike for a pet with previous claims is probably going to be higher than the price hike for a pet that has never lodged a claim (even if other factors are the same).
For example, a four-year old Havanese dog that’s had surgery for cataracts will attract a higher premium increase than a four-year old Havanese dog that hasn’t needed expensive surgery.
Having said this:
Even if you’ve never lodged a claim for your pet, you can still expect a minor price hike due to reasons we will discuss below.
REASON TWO: How old is your pet?
Pet insurance companies take into account Busta’s age when setting the premium each year. In fact, this is one of the main determinative factors.
Expect to pay a higher premium as your cat or dog gets older, as their health is more likely to deteriorate due to illnesses associated with ageing. They may need to see the vet more often, and their medical problems usually come with a higher fee.
Remember our fluffy pals age quicker than us, so their veterinary costs will generally increase a lot faster than our medical costs.
REASON THREE: What is your pet’s breed?
Every pet has genetic predispositions to different conditions, based on their breed.
For example, Havanese dogs are particularly susceptible to heart disease and canine hip dysplasia; whereas Ragdoll cats are more likely to develop urinary tract infections and polycystic kidney disease.
No breed is spared from genetic predispositions to illness.
However, some breeds (like French Bulldogs) have a higher risk of developing health problems that come with a hefty price tag.
Their premium increase will likely be steeper than a breed that doesn’t have as many issues. The insurance provider needs to take into account that certain breeds cost more to look after, in order to cover their expenses.
Even if your pet is perfectly healthy, its premiums will still be influenced by insurance data that’s available for their breed.
Consider also that sometimes premium increases reflect new scientific information that’s come to light about a particular breed’s predisposition to disease.
REASON FOUR: Medical advancements
The good news is we’ve seen many impressive advancements in veterinary care, such as the development of genetic testing and immunotherapy.
There’s enormous demand for these effective medical treatments and services.
It’s little surprise that treatments have become more expensive over the years, and this is reflected in rising premiums.
Providers like Potiki can’t deliver the safety net of pet insurance, if we don’t take steps to cover higher medical costs.
Are you concerned about how much does pet insurance increases each year, depending on location? Well, premium hikes are higher for some locations as compared to others. For the locations where treatment costs are higher, the premium prices are often greater. Vet Prices vary across Australia, as there’s no standard pricing model.
REASON FIVE: General inflation rates
The pet sector doesn’t exist in a bubble, so there’s no escaping inflation in wider society.
Unfortunately, it looks as though Australia is being hit by some of the highest inflation rates in more than three decades. Insurance providers must factor this into their annual premium hikes, otherwise they would operate at a loss and cease to exist.
We’ve already seen how inflation is driving up hospital costs for humans, so it isn’t a stretch of imagination to see how this applies to pet care too.
Aside from veterinary costs, inflation is causing price surges for pet food, treats and other essential items. It turns out that 73 per cent of dog owners are worried about rising costs, according to one survey.
On this important point:
Potiki actually gives ALL our pet insurance customers $400 worth of tailored essential pet supplies EVERY YEAR – because we want to help pet owners keep general costs down (we know how these add up)!
How much can you expect to spend on pet insurance premium increases each year?
Premiums usually rise each year, but this amount is subject to change based on your pet’s claim history, age and breed information – as well as inflation rates.
It’s impossible to give you an exact answer without having access to this information. If you’d like to find out more, contact your insurance provider and ask for an estimate.
Why get pet insurance with Potiki in particular?
Imagine if you never need to lodge a claim – Potiki gives you good value for your premium anyway. You won’t feel as though you’ve wasted your money!
We’re powered by Hollard, one of the best pet insurance providers, so we offer quality insurance coverage.
But it’s not just medical with us.
We also help you look after your pet’s general needs to PREVENT illness.
No extra cost.
- Potiki Perks (up to $400 worth of value each year)
Potiki will send a care package filled with day-to-day essentials such as flea treatments and worming tablets. You choose the items, tailored to your pet’s needs. We’re able to source these items for competitive prices, having teamed up with the pharmaceutical industry.
- Expert medical pet advice (online chat service valued at $199)
Seek advice from an experienced vet, without even leaving the house. Our VetChatTM service operates 24 hours a day. You can get medical support for situations that don’t require a face-to-face appointment.
Unlike so many insurance companies, we actually provide these extra services for every year that your policy is active, not just when you first sign up!
Potiki cat and dog insurance lets you claim:
- 80% of eligible vet bills a year
- A choice of excess ($Nil, $250 or $500)
- And with Platinum Cover:
- Claim up to the annual benefit limit of $30,000 p.a.
- No Annual sub-limits for Vet Consults, Tick Paralysis, Cruciate Ligaments & Hip Joint Surgery
GapOnlyTM cover: After the appointment, you only pay the expected balance not covered by your policy. We pay the rest directly to your vet, so you don’t need to wait for the rebate. (Note: the vet practice needs to be signed up for the GapOnlyTM service in order for one to access this.)
- Get a quick quote to find out what your premium will cost for one year.
- Submit payment if you’re satisfied with that amount (email us at [email protected] with any questions).
- Log into your Potiki Perks portal to select items for your care package, which will be swiftly delivered to you.
- Lodge a claim if you need help paying vet bills for unexpected sickness or injury.