Cost of UK pet insurance falls despite higher vet fees and inflation

"The pricing data coincides with a study which found that one-third of UK pet owners don't have insurance, with cost cited as one of the biggest factors. It is estimated that 60% of UK households about 17 million have a pet, and the high costs of ownership have been in the news lately. Last month, the government announced a big shake-up of the UK vet sector that ministers said should push down costs for pet owners by requiring practices to make their pricing clearer."

"Pet insurance is mainly designed to cover the cost of vet fees for the treatment of illness and injury; other policy benefits can include things such as cover for loss and theft. One of the main types is lifetime insurance, which is the most comprehensive and the most expensive. Average lifetime pet insurance premiums ended 2025 about 1.6% lower than a year earlier after a 2.3% drop in the final three months of last year, the pricing consultancy Pearson Ham said this week."

"It added: The most pronounced year-to-date reductions [were] seen among animals aged four to six, where competitive pricing from leading brands has driven premiums down by about 4% over the year. By contrast, premiums for older dogs and cats have remained broadly flat year-on-year. Pearson Ham said the median lifetime insurance quote last month was 247 for dogs and 180 for cats a year, adding that the data underlines just how competitive the pet insurance market remains."

Vet fees and many other pet-related costs continue to rise while average pet insurance has become slightly cheaper as providers compete. One-third of UK pet owners lack insurance, with cost a key factor. About 60% of UK households, roughly 17 million, have a pet. The government announced reforms aimed at clearer veterinary pricing to help reduce costs. Lifetime insurance is the most comprehensive and most expensive type. Average lifetime premiums ended 2025 about 1.6% lower year-on-year, with the biggest reductions among animals aged four to six and older pets' premiums broadly flat.

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