24% and 31.6% Rate Hikes on the Way for Pet Parents With American Home Insurance | Insurify

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.

Premium impact of approved rate change

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:

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.

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.

What’s next: How the new rates compare to industry averages

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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