When I announced the Embrace Pet Insurance move to our new underwriter, American Modern, I promised to tell you about our new diminishing deductible feature, also known as the Healthy Pet DeductibleTM.
If it sounds familiar, it's probably because you have seen quite a few TV ads from several large auto insurers with their own versions of the deductible reducing every year of claims-free driving. The Embrace Healthy Pet Deductible is very similar - if you go a year without any claims paid out for your pet, your next year's annual deductible reduces by $50 and so on every year, until you reach a $0 deductible.
Embrace is the first pet insurer in the world to offer this feature.
The point is not to discourage you from sending in your claims but to offer encouragement for those pet parents whose pets stay healthy and are not using their Embrace policy to stick around for when they ultimately will need their pet insurance.
It just kills me when someone cancels their policy because they haven't used it for 3 years and then call in 6 months later asking if we'd cover an accident or illness that has occured after the insurance was stopped. I never want that to happen again.
For specifics, you can learn more on our Health Pet DeductibleTM webpage. For example, it is only available to those policies underwritten by American Modern so you'll have to wait until your policy coverts over to start earning those credits.
In the meantime, here's an example that I put together on how it works.
Consider a multi-pet policy with my cats Rocket (annual deductible $500) and Rosie (annual deductible $200).
Year 1 – one covered claim for Rocket of $300 and one for Rosie for $300 as well.
- Since Rocket’s claim is under her $500 deductible, there is no claim payout; therefore, Rocket accumulates a $50 deductible credit for year 2.
- Rosie’s claim, however, is over her $200 deductible so there will be a claim payout in year 1; therefore, Rosie will not accumulate any deductible credits for year 2.
Year 2 – another covered claim for Rocket of $600 and no claims for Rosie.
- Rocket’s claim is over her deductible ($500 - $50 = $450), so there is a claim payout; therefore, Rocket will not accumulate any deductible credits for year 3 and her accumulated deductible credits are reset to zero.
- Since Rosie has no claims in year 2, she accumulates $50 in deductible credits for year 3.
If we rewrote the example this way, you can see how the Healthy Pet Deductible accumulates:
Year 2 – another covered claim for Rocket but this time for $300 and no claims for Rosie.
- Rocket’s claim is under her deductible ($500 - $50 = $450), so there is no claim payout; therefore, Rocket accumulates another $50 to make her total deductible credits equal to $100 for year 3.
- Since Rosie has no claims in year 2, she accumulates $50 of Deductible Dollars for year 3.
So if you claim, you get reimbursed (if it's above the deductible) and if you don't (it's below the deductible), you get a credit.
What's not to like about that?