So basically if you get a pet, you'll probably be happy but at the time you get that pets duplicate it becomes useless..
Why not make it like that if you get a duplicate pet, you could insure it with your duplicate instead of spending 10m?
I like the idea, although currently if you were to lose your first pet you would still have your duplicate, so it is kind of in-game currently? Not sure how they'd go about coding this.
While I understand that having multiple pets would be pointless, insuring your pet with a duplicate isn't exactly how insuring works, nor how it should work. 10m seems pretty reasonable, in my opinion.