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Californians with pet insurance coverage through American Home will soon see their rates soar. In late January, the state Department of Insurance gave the insurer permission to increase rates for its accident and illness plans by 24% and its accident-only plans by 31.6%.
The rate hikes will bump up the average annual cost of an American Home accident and illness policy by nearly $200 and increase the average annual premium for accident-only policies by nearly $36.
The increases will affect all new policies and renewals for 69,337 existing policies starting May 15, 2025, according to the company’s rate filings with the state.
While some policyholders may actually see their premiums decrease under the proposed rate changes, the majority will see their premiums increase.
Here’s how the change will affect average premiums:
Policy Type  | Current Average Premium | New Average Premium | Dollar Increase in Average Premium |
|---|---|---|---|
| Accident and Illness | $783 | $971 | +$198 |
| Accident Only | $113 | $149 | +$36 |
Additionally, the increases will affect the insurer’s base rates — the starting point for premiums — for both cats and dogs. The insurer considers rating factors like a pet’s age and breed to make adjustments to its base rates and arrive at an individualized premium for each pet.
Pet Type | New Accident and Illness Base Rate | New Accident Only Base Rate |
|---|---|---|
| Dog | $320 | $155 |
| Cat | $330 | $157 |
Accident and illness coverage — also known as full-coverage pet insurance — can reimburse the cost of veterinary care when a pet becomes sick or injured. Accident-only plans only cover accidental injuries and exclude coverage for illnesses.
The average annual cost of pet insurance in the U.S. is $540 for dogs and $288 for cats, according to Insurify data. The annual average in California is a bit higher — $564 for dogs and $288 for cats.
With the rate changes and increase in average premiums, American Home’s overall annual average of $448 is in line with averages throughout the state.
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