Pet insurance premiums are set to skyrocket for more than 64,000 California pet owners.
The California Department of Insurance (CDI) recently approved a 45% rate increase for Pets Best insurance policies underwritten by American Pet Insurance Company (APIC).
The hike, which took effect April 2, will only affect renewing policies. APIC no longer sells new Pets Best insurance policies in California. Currently, APIC has approximately 64,770 Pets Best insurance policies in force in the state, according to documents the insurer filed with the CDI.
The approved increase will push Pets Best’s base rate for its accident and illness pet insurance policies to an average of $755.49 annually. Factors like a pet’s age, breed, and current health determine how much policyholders will pay above a base rate.
Pets Best’s new base rate for policies will be well above California’s averages. Pet parents in the Golden State pay an annual average of $564 to insure a dog and $276 to insure a cat, according to data from Insurify and its pet insurance partner, Fletch. In California, the average annual cost of a Pets Best policy is $384 for dogs and $204 for cats, according to Insurify data.
California’s pet insurance averages are the 12th-highest of any state. Its comparatively higher pet insurance costs could be partly due to a higher cost of living in general and more expensive veterinary care costs in particular.
Steep premium increases often lead to comparison shopping as consumers look for cheaper deals. APIC’s CDI filing requesting the increase indicates the company is aware of this probable outcome.
In filing documents, APIC projected a brisk pace of cancellations following renewal increases — including more than 12,700 cancellations in 2025.
Independence American Insurance Company also underwrites Pets Best policies in California. This rate increase won’t affect policyholders with a Pets Best policy through IAIC.
Policyholders should check the declarations page of their Pets Best policy to determine which company underwrites their coverage.
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