122% Increase in Premiums in Less Than A Year!

Out of 10

I have had Trupanion for almost a year and I just received notice that my premiums are increasing from $42.70/mo. to $94.97/mo. That's an increase of 122%!! Their justification for the premium hike is an "increase in medical costs."
This argument is completely unfounded for the following reasons:

1). My dog sees 2 different local vets and neither one of them have increased their rates.

2). The U.S. Bureau of Labor Statistics ("BLS") annually publishes the Consumer Price Index (CPI) summarizing the average costs to U.S. consumers for certain categories of expenses. According to the most recent report, the cost of veterinary care only increased 4.6% from 2010 to 2011. In fact, according to the data on the BLS website, from 2003 to the present, the average cost of vet services has never increased annually more than 6.3%.

So how does Trupanion justify an increase in my premium of 122% when the national average for increased vet care is only 4.6%? In my opinion, they don't. Other customers have posted similar complaints on this website about premium increases. Here is one of Trupanion's responses:

"if you compare our most recent rates with our competitors' rates, you will see that we are in the same ballpark for pricing." (See http://www.petinsurancereview.com/reviewComment.asp?ID2=1300&ID1=15639)

This statement, true or not, is completely irrelevant. When I signed up for my policy, I was promised the "rates will occasionally be adjusted to reflect

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122% Increase in premiums after less than 1 year
Claim Amount
$100 - $500

Labrador Retriever

Age of Pet
1 - 8

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Posted: 05/03/2012

this makes me nervous too re: the high jump in rates...am wondering when we will get hit with this too as we had a claim in Dec. '11 and Jan '12...think I should start shopping around but may be hard to get insurance now as my dog (at 1 yr.)required surgery on her knees for luxating patellas.

Posted: 03/12/2012

Hi Christi,You are correct that veterinary costs have remained fairly flat. However, because we offer 90% coverage with no limits on payout, we must adjust premiums to keep in line with the average cost of a pet like yours. This is based on your pet's age at enrollment, breed, geographical location, and deductible choice.
For example, if many pets 'like yours' are experiencing medical issues, you may see an increase in premium; whereas if they collectively make fewer veterinary visits, then you will likely see a decrease in premium. We work to keep premiums fair so that pet owners in "less expensive" categories are not supplementing those with more expensive pets. Rather, our premiums are based so that for every dollar received in premiums, 70 cents is paid out in claims on average.
I encourage you to give us a call to learn more. 800-569-7913

Posted: 09/13/2012

Funny, I don't remember the Trupanion website stating what Stacy said. It stated that premiums would go up based on the rise of vet costs. Now it's "Pets Like Yours" based. Come on. Find another insurance company!!!! I will be. Deceptive Sales Practice!