Here is a post by Lea, our renewal specialist at Embrace, on renewals.
[here's Lea at Blogpaws West this summer. She is on the right of the picture, with Meg, an Embraced pet parent with her Embraced dog Dagobaz in the middle, and me, Laura Bennett on the left]
__________________________________________
Now that we’re in our 6th policy term, it’s quite interesting to see that some pets have had quite a few claims over a few terms, while others have had none at all! With a large chunk of our policyholders coming up for renewal in the summer months, you might already be thinking about whether or not your pet is “overinsured.”
This situation came up recently, when one of our policyholders received her renewal notice. The woman, on a fixed retirement income, received a renewal quote for her fourth policy term. Her rate has gone up a bit, due to inflation, her policy parameters ($10,000 annual maximum and 10% co-pay) and the fact that her dog is now a senior. She began to consider reducing her dog’s coverage to lower her annual payment.
But, her dog has had 22 claims over the past 3 years-mostly minor things (allergies, skin issues, and a mass removal). So, we crunched some numbers to help her decide whether or not a change in her pet’s coverage was a smart financial decision:
First, we took a look at the claims she’d had over the past 3 years, and came up with an average dollar amount spent on her dog’s unexpected vet bills (wellness excluded). That average came to about $1200 per year.
Then, we looked at how her current coverage would pay if she had another $1200 year.
$1,200 in vet bills
-$200 deductible
$1,000
-10% co-pay
$900 reimbursement
Then, we looked at a couple of alternative quotes. A higher deductible ($500) would result in a 35% decrease in her premium (an annual drop of $230), but the reimbursement would be less:
$1,200 in vet bills
-$500 deductible
$7,000
-10% co-pay
$630 reimbursement
A higher co-pay would also offer a 23% drop in premium ($151), but $100 less in anticipated reimbursement.
$1,200 in vet bills
-$200 deductible
$1,000
-20% co-pay
$800 reimbursement
In this case, she felt she was better off to stay with her current policy level for the piece of mind.
Ultimately, policy changes are a personal decision. It’s not a science - it’s up to you, and your budget to decide if and when you want to make a change. Things to consider:
- Is your pet getting older, and more likely to have unexpected visits?
- Are your finances now able to take on more out-of-pocket?
- Do you feel comfortable that your pet is overally quite healthy, and a low risk for major events?
It’s an overwhelming decision, and you never know if you’re making the right call. But, your Embracer will always be happy to share some quotes and options with you, and can help you make the informed choice.
[Note that you can revise your policy coverage at any time but there are underwriting implications when increasing your coverage - here are the rules around changing coverage]
