The following factors may affect the premium you pay for pet insurance:.

The type of pet you're insuring
The pet's breed and associated medical conditions
Veterinary costs in your area
The coverages you select on your pet insurance policy
The deductible on your pet insurance policy

Pet's age and breed

Just like with humans, as pets get older, they're more likely to develop health issues or conditions, which can increase the risk for insurance companies. Because of this higher risk, premiums tend to be higher for older pets. Younger pets generally have lower premiums because they're less likely to have health problems.

Secondly, the breed of your pet also influences insurance costs. Some breeds are prone to certain health issues or genetic conditions, according to CBS News. For example, Newfoundlands are large dogs prone to kidney stones and heart issues and may be more expensive to insure, as a result. Conversely, English Springer Spaniels are small and tend to live long healthy lives.

Coverage type and limits

Coverage type is like the package deal you choose for your pet's insurance, and limits are the maximum amounts the insurance will pay for different vet visits and medical treatments.

For instance, a standard plan may cover the issues mentioned earlier – accidental injuries, illnesses and breed-specific conditions. If you purchase additional coverage for routine care or preventative surgeries, your premium may be higher as a result.

You can typically set coverage limits, too. That’s how much your insurance will reimburse you when you file a claim. The higher limits, the higher your rate – but it also means the more you’re covered.

Location

Like other types of insurance, where you live can have an impact on pet insurance rates, according to Forbes. Urban areas tend to have higher vet costs than other areas, and higher premiums as a result.

If a state or city tends to have higher vet costs in general, adds CBS News, then you’re likely to pay a bit more for pet insurance.

Deductibles and copayments

Deductibles and copayments are key components of pet insurance policies, and they could affect both the cost of the policy and how much you pay out-of-pocket for your pet's healthcare expenses.

A deductible is what you pay before coverage pays for the rest. Mentioned earlier, a higher deductible typically means a lower premium.

A copayment is the percentage of the covered expenses that you pay after you’ve met your deductible. Like deductibles, higher copays typically mean lower premiums.

Read on to learn more about these factors and how they may affect the cost of a pet insurance policy.