I signed up my dog Luna for Pet Insurance when she was 5 months old last year. At the time, I spent a LOT of time researching the best insurance companies for pets.
Trupanion convinced me because they cover hereditary/congenital diseases and dysplasia as long as the dog was enrolled before 1 years of age. I was sold. To top it off, their premium for a $0 deductible with 10% copay was $53. No brainer, right? That's what I thought.
Their website and promotional material CLEARY states that the ONLY reasons premiums will be increased are to cover inflation and/or increases in veterinary costs. That is not true!
Last month, I received an e-mail informing me that my insurance premium was increasing from $53 to $98 per month! I was shocked! On top of that, they said I had 30 DAYS! They increase premiums without ANY warning and then only give you 30 days, which isn't even enough time to switch your dog to another company since most require 30 days waiting period until the policy is effective.
Immediately, I started looking online and found dozens of similar reviews. Many people have experienced rate increases up to 400%. Quite a few of them are on Yelp, but they are filtered so unless people know to click on filtered reviews, they aren't visible.
I went to their blog and lots of people were complaining. Their PR specialist, Stacy, keeps telling everyone that the rates were not increased because of claims filed, which is a lie. They say that they hadn't updated premiums in 4 years because they didn't have enough claims to get their request approved by the Department of Insurance. How can you say that the increase is not based on filed claims??? Quoted from "Stacy" from a Yelp Review:
"... We have begun updating premiums in the US. Some of the greater changes you have seen were most likely from California in which premiums had not been updated in nearly 4 years. It took time to build up significant claims evidence to justify the new rates and have them approved by the state's department of insurance. The premiums you see today and on the website are much more up-to-date and any future changes to premiums are predicted to be much less surprising."
Bait and Switch at its best.
The bottom line is that they didn't have enough customers filing claims is the US, so they kept the prices really low while they hooked in enough customers until they got DOI approval to hike up the prices. Deceitful business practice. This pending request with DOI should have been disclosed to customers when they sign up, and their advertising should most definitely be reworded to include the possibility of SIGNIFICANT rate increases, not just inflation and vet costs.
Now customers are cornered because switching insurances with a dog older than 1 year will cost a lot more, and any existing claims with Trupanion would be considered "pre-existing" if they switch their pets to another insurance at this point. My dog is only 18 months and fairly healthy, but what about the people who enrolled older dogs while being promised these affordable rates and a year later get a nasty 300% increase in their rates? They have limited options and in the end, many will have to either cancel and not insure their pets, or pay ridiculous premiums while Trupanion does nothing.
I will try my best to make sure as many pet owners as possible are aware of this scam. I am starting a savings account for my pet's health problems, and as soon as I have a reasonable amount, I will cancel my policy. It is so unfair that they can get away with this. It makes me sick.
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