Why are pet insurance prices suddenly so high?

WORCESTER – When our pets are sick or hurt, we will do anything to help them. But an emergency visit to the veterinarian can cost thousands of dollars.
In the last several years, there’s been a big spike in pet owners getting pet insurance. But, there’s been an even bigger spike in the cost of that insurance.
WBZ-TV viewer Carrie LaRose asked us – why are pet insurance prices suddenly so high? 
Right now, 5.6 million pets are insured in the United States, including LaRose’s 6-year-old golden retriever named Fenway. LaRose has had pet insurance for Fenway since he was just a puppy. She was really glad she had it two years ago when Fenway suddenly had a seizure.
 “He stopped breathing. He was writhing. He was foaming,” she told WBZ-TV.
LaRose said with medical tests and medicine, she easily saved $5,000 with her pet insurance policy. Her monthly payments were pretty cheap, too. In 2018, she was paying $39.93 per month. It stayed that way for two years. But in 2020, the price went up to $44.44. In 2021, it was $57.90 per month. In 2022, it went up again to $71.62.
In 2023, it was $95.08. Then, this year, her premium jumped to a whopping $129.28 per month.
“It’s more than tough. It doesn’t fit it into the budget at all,” LaRose toid WBZ.
Pet insurance for my 4-year-old golden retriever, Ringo, jumped from $78 per month to $118 per month this year. 
Why? Well, clear answers are hard to come by.
LaRose’s insurance company, Trupanion, guarantees on its website that it won’t raise the yearly premium because of claims or because the pet is a year older. WBZ reached out to them for an explanation for Fenway’s huge price jump and never heard back.
As for the more than 50% increase in my bill, the insurance company said, “The price hikes are based on the pet’s geographic region … the rising cost of veterinary care in the United States and inflation due to equipment improvements, medication and other factors.” Then, they added: “It’s just like home and auto insurance.”   
Pet insurance companies are licensed and regulated by the Division of Insurance in Massachusetts. The agency said companies have blamed rate hikes on “evolving technology and increases in the costs of supplies.”
Harrison Stenson is the pet insurance coordinator at Angell Animal Medical Center in Jamaica Plain. He thinks insurance is important and he helps pet owners at the hospital to work through any issues or questions with policies. He said he does not sell insurance or partner with any insurance companies. He just wants customers to be prepared.
“Every day, I see people who probably couldn’t get their pet’s cancer treatment if they didn’t have insurance,” said Stenson.
But Stenson sees some big problems with the industry. Most of all, he doesn’t like the vague answers that insurance companies provide.
“It is definitely tricky for me to understand what’s happening with the prices. There’s not a lot of transparency,” he said. “One of the biggest issues I have when recommending a policy for people is just not knowing what that insurance company is going to do with their prices. In the next year. In the next five years. I just don’t know, and I really wish I did.”
Insurance companies can even drop you as a customer. Nationwide Insurance recently announced it was canceling coverage for about 100,000 pet owners because of profit problems.
LaRose can’t switch her dog’s insurance company because he has a pre-existing condition. 
 So, is it even worth it? 
Well, if you are spending $1,000 on pet insurance this year, over 10 years, that’s $10,000. That money could be put in an emergency savings account– and you might not even use it. But that takes discipline, and some people want the peace of mind of knowing they’re protected from any major medical problem.
At the end of the day, our pets are priceless, and insurance is pricey with no end in sight.
If you have a question you’d like us to look into, please email [email protected].