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Factors That Determine Monthly Premium For Pet Insurance

Pet insurance may seem costly and unnecessary, especially if your pet rarely falls ill. However, sometimes the unthinkable may happen, and your buddy has to be rushed to the vet. It is a hard pill to swallow, but sometimes we need to gear up for the worst even though we do not want it to happen. Therefore to avoid digging deep in your pocket during such emergency veterinary visits, you can take up insurance for your pet. Once you sign up for pet insurance, there are several things you need to know to get the right insurance at the right cost;

  • Average cost of pet insurance
  • Factors that affect monthly premiums
  • What pet insurance covers
  • How to find the best pet insurance provider within your budget

In this article we will specifically look at the factors that will affect your monthly insurance payments, and some of them include;

Geographical Location 

Where you live will contribute highly to the number of premiums you pay for your pet’s policy. Different places have different veterinary prices. For example, you will be paying more for a vet in California than in Tennessee. Thus, this results in higher insurance premiums.

Pet BreedPet with Vet

Certain pet breeds are known to be susceptible to specific diseases. For example, a Rottweiler has a high tendency of suffering degenerating bone disease and epilepsy. A bulldog is also labelled as the highest example of genetic manipulation in dog breeding, and thus it has more congenital diseases and hereditary issues. Therefore if you own a pet breed with health issues, you will probably be paying more for its monthly premium.

Age Of The Pet 

Most people take time to realize the importance of pet insurance, hence enrolling late for coverage. Insurers strictly look at the pet’s age when deciding how much you will pay. An old pet is highly likely to fall sick compared to a younger one. With old age comes some chronic diseases which may need ongoing treatment and care. If you insure your dog earlier, you will pay the same amount of premiums even when it gets to old age.

Before taking up any coverage, ask the company to give you the complete quote of their charges according to the pet’s age. Noteworthy, companies sometimes raise premiums for other reasons except the pet’s age. They may raise the rates due to inflation or their actuarial data correction.

Amount Of Medical Coverage 

You will pay more premiums if you have more medical coverage. For example, you will pay less if you take cover for accidents only and more when you take coverage for illness and accident. Hence the more comprehensive the coverage you choose, the more you will pay. people use this area to reduce cost by taking a lower amount of coverage. The downside of this is that you will not receive the maximum coverage for your pet when you need it.

 Amount Of Monetary Coverage 

If you choose higher monetary coverage, you will pay more premiums. That said, you need to select enough financial coverage that will accord your pet a wide range of health care benefits when they will need it.

The Deductible Chosen 

A deductible is the amount of money paid before the insurance company starts paying your pet’s medical bills. It is divided into two categories which are per-incident and annual deductible. Per-incident is the amount you pay for at the veterinary before claiming for reimbursement. In contrast, an annual deductible is an amount you pay for the insurance policy every year.

Paying for a deductible will reduce the amount you will pay for premiums. Therefore adjusting your deductible is an excellent way to reduce the amount of monthly premiums you will pay. Also, if you decide to pay a higher deductible, it would be best to pay for it annually since the insurance may never kick in if you pay for it per incident.

The Co-Payment Chosen 

A co-payment is a fixed out-of-pocket amount paid by a principal for services covered by the insurance company.  Therefore if you incur a medical bill of $500 at the vet and your co-payment clause is 10%, you will pay $50 and the insurance company will pay the rest. Most policies that have included co-payment clauses usually have low premium rates. You should also note that the co-payment is done only with expenses that the insurance covers. There are various diseases that the insurance does not cover; hence you need to go through the terms and conditions carefully before agreeing to the co-payment clause.


Several factors determine the number of premiums you will pay. You can have control over some aspects while some are beyond your control. Therefore you need to assess some of these elements before signing any contract with your insurer. Ensure to read all the exclusion clauses and any other relevant information concerning your pet that may affect the insurance payment and coverage. Also, note that premiums will always fluctuate through the lifetime of your pet, so gear up for the smooth yet not so smooth road.