Trupanion
Washington,#2UPDATE Employee
Wed, July 11, 2012
Hi Lilly,
I would like to clarify the reason for our premium adjustments. We state that premiums do not increase based on your individual claims history which is true. If you were to file many claims, you would not be penalized with an automatic premium increase or reduction in coverage just because you have an unlucky pet.
However, premiums are based on claims as a whole. Because of Trupanion's values, we do not believe in punishing an individual for having an unlucky pet. Rather, our premiums are based on a shared risk with pets being placed in 'like' groups. If, as a whole, the average pet like yours (based on breed, location, age at enrollment, and chosen deductible) is filing more claims, then the average premium for that pet will likely increase. If that average pet is filing fewer claims over the next period, then the premium will likely decrease.
Our CEO explains this more clearly in this video: http://trupanion.com/why-trupanion/value
I noticed you were also concerned about the 30-day notification. Our policy is a monthly policy, meaning that we do not "lock you in" for a year, and you can cancel at any time without penalty. Because it is month-to-month is the reason the notification was 30 days in advance.
I do apologize for the delay of time which it took our new premiums to become approved by the DOI which was partial cause for the more significant jump. In the future, we foresee more regular and predictable premium adjustments.
Please feel free to call at any time to further discuss. 800-569-7913
-Stacy