Well, as any pet owner knows, our furry friends are part of the family.

And keeping them healthy and safe through the use of pet insurance has become an increasingly popular option.

But as the demand for an insurance policy rises, so has the cost.

Now, owners and even federal officials are calling out the insurance companies for seeking dramatically higher prices for premiums.

The Murphy administration says it's reviewing each insurer's request to raise rates and making sure they're in line with state law.

But as Ted Goldberg reports, many policyholders feel like they were duped.

Nobody wanted her.

She doesn't have traditional markings in the breeder.

You know, she wasn't perfect, but she was perfect for us.

So she became a wonderful family pet and we wanted to protect her.

Jeff Foose says he felt pressured to buy pet insurance for Lucy, his Boston terrier.

He signed up with Trupanion, a big dog in the industry, and says he was promised in writing that premiums would never jump more than 20% in a given year.

You know something that networks and financial services.

I thought this is a good hedge.

The cap on our rate, you know, we'll never get more than 20%.

So that's what really led us to purchase that policy.

Subsequently, we found out that pet insurance can change the kind of terms and conditions of a policy.

Pretty much at any time with a filing.

They don't have to tell you.

What Trupanion did tell Foose was that they've requested a 33% hike from New Jersey's Department of Banking and Insurance or DOBI and pass it on to him.

They're not the only pet insurance company asking for higher rates.

Healthy Paws Pets at Metropolitan General Insurance Company want to raise their rates by 44 and 56%.

Leading Congressman Josh Gottheimer to write a letter asking for DOBI to reject these requests.

Foose says he's done the math, and while it was nice to have security from pet insurance, it wasn't worth it financially.

We've paid over $5,400 over the life of the policy and through claims and sending in bills.

We've got roughly about 2750 back in claim payments.

But if Foose wants to keep Lucy insured, he's stuck with Trupanion.

The issue is familiar to anyone who's tried to get health insurance for themselves.

We can't switch.

It's called a preexisting condition.

So as competitive as the pet insurance industry has become, we still can't leave Trupanion because of these existing conditions.

She's nine and a half years old.

Insurance companies are realizing oopsie I made a mistake in that initial evaluation that I need is is not going to work.

Jennifer Kim is the president of the New Jersey Veterinary Medical Association and works at a pet hospital in Pennsylvania.

Like Foose, she's enrolled in Trupanion for her pets.

The lowest deductible they have, which is $75 for a dog over 13.

The insurance rate is $827 a month.

According to federal data.

Veterinary services have gotten about 10% more expensive from August of 2021 to August of 2022.

While that doesn't explain why insurance would become 30% more expensive, Kim says there are other factors, like the rising cost of medical supplies and fewer people working as vets.

People want to do more with their pets, and so that's driving up the costs of the insurance because things that we wouldn't have treated before or people are treating now.

The North American Pet Health Insurance Association estimates that pet insurance for dogs costs $640 a month last year.

The numbers are smaller for cats with an average cost of $387 a month.

DOBI does have the power to reject these requests for higher rates, and Foose hopes that happens.

I still can't believe that a United States company is allowed to do this to consumers.

In response to this story, Trupanion sent this statement.

Our goal is to price every pet's coverage fairly and that what we charge is always transparent and equitable.

We remain committed to operating within New Jersey's regulations, ensuring that no pet owner will experience more than a 25% rate increase.

They say this policy includes a 33% raise because it includes a renewal period of more than one year.

That's still not sitting well with Jeff Foose.

For NJ Spotlight News, I'm Ted Goldberg.