Pet insurance rates in New Jersey have seen a significant surge, creating financial strain for many pet owners in the state. The increase in insurance premiums has outpaced the rise in veterinary care costs, exacerbating the financial burden on pet parents. According to an analysis by NJ Advance Media, insurance companies in New Jersey requested an average premium increase of around 22% in 2024, with an approved increase of 13.5%.

While the average increase translates to a monthly rise of approximately $7 or $84 annually on a typical insurance plan, some pet owners have faced much steeper hikes. ManyPets, a pet insurer, was granted permission to raise premiums by almost 47%, marking one of the highest increases. State regulations require insurance companies to seek approval for rate adjustments from the Division of Insurance and Banking, which can intervene if the proposed rates are deemed excessive.

Multiple insurance providers submitted a total of 31 rate hike requests for 21 different insurance plans since January of the previous year. Pet insurance typically covers expenses related to accidents or illnesses but may not include routine veterinary care such as vaccinations or check-ups unless an additional wellness plan is purchased. Unlike health insurance for humans, pet insurance can vary premiums based on factors like the pet’s health, age, size, or breed.

The average monthly premium for pet insurance in New Jersey stands at $51, with costs varying based on factors like coverage limits, reimbursement rates, and the pet’s characteristics. Rising pet insurance rates are attributed in part to an uptick in policyholders utilizing coverage for their pets. Nancy Kearney from the Division of Banking and Insurance highlighted that pre-existing conditions in pets can lead to higher insurance costs as most policies exclude coverage for such conditions.

ManyPets, operated by Accredited Surety and Casualty, implemented a substantial increase of 46.8% for its New Jersey customers, citing escalating veterinary expenses as a key factor. Similarly, Pets Best, a subsidiary of American Pet Insurance, requested a significant premium hike of 65.1%, the largest among insurers in 2024, eventually approved for a 34.7% increase.

The escalating costs of veterinary care, driven by factors like advanced treatment options, technological advancements, and inflation, have contributed to the industry-wide surge in pet insurance rates. Notably, prices for all pet services, including veterinary care, rose by 8.1% over a year, while non-veterinary pet services increased by 4%. Meanwhile, the costs of pet food, supplies, and accessories remained relatively stable.

As pet insurance rates continue to climb, New Jersey pet owners are grappling with the financial implications of ensuring comprehensive coverage for their beloved companions. The evolving landscape of pet insurance underscores the importance of informed decision-making and financial planning to meet the healthcare needs of furry family members.