In order to ensure a fairer method of setting pet insurance premiums, Petsecure have moved away from what is known as “community rated” premiums where all pets pay the same premium no matter what risk profile they present. In Australia, Health Insurance premiums for humans are “community rated” as it would disadvantage older people significantly if they were rated on the risk.
For pet insurance, it wouldn’t be fair that the same premium applied for a Miniature Fox Terrier puppy and a 10 year old Great Dane. The veterinary risks and treatment costs will obviously differ significantly between these two extreme examples.
Petsecure Pet Insurance works like most other forms of insurance (except Health Insurance for humans), where the premium charged is calculated on “risk” factors associated with the insured risk (in the case of our policies, a pet). For example, motor insurance premiums are based on factors such as the make and type of vehicle, age and experience of the driver, where the vehicle is kept and so on. Life insurance premiums will be affected by factors such as age, gender, occupation and health history of the life insurance. It’s the same with pet insurance, where factors include the breed and age of the pet, location, and whether the pet is de-sexed or not, as these are risk factors.