How to cut the cost of pet insurance

Britain may be a nation of animal lovers but that devotion can come at a high price for pet owners seeking to safeguard their furry friends' health.  

The average annual pet insurance premium is £115 a year, according to latest data from CompareTheMarket. Insuring dogs is especially expensive, at an annual average of £133, and premiums can increase to thousands of pounds for older animals and some breeds.

But going without insurance can also "prove costly", said The Sun. The Competition and Markets Authority (CMA) is launching an investigation into "whether pet owners are getting a fair deal from vets", as the cost of treating "poorly" animals has been "rising faster than other living costs", the paper reported. 

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Why to get pet insurance

According to the Association of British Insurers (ABI), "the high cost of veterinary treatment, including drugs and diagnostic equipment", has driven up pet insurance premiums. 

But while owners may be tempted to risk going without insurance, said CompareTheMarket, taking out a policy "could potentially save you hundreds of pounds a year".

Latest ABI data shows that pet insurance payouts topped a record £1 billion last year, as vet charges soared. Common high-value claims, such as for spinal surgery, were typically between £8,000 and £10,000, while treating a dog for arthritis can cost more than £2,000. 

Pet owners seeking to ensure such costs don't come out of their own pockets have a range of options for insurance policies, which can be paid monthly or annually.

The cost will depend on the type of cover you buy, said CompareTheMarket, as well as "various risk factors that insurance providers use to calculate your premium". Some providers pay vets directly for claims, while others reimburse the pet owner for the cost. 

The most comprehensive cover, said Which?, is lifetime pet insurance, which will "pay out indefinitely for treatment over your pet's lifetime, subject to annual limits". 

Alternatively, annual or time-limited cover is cheaper and is paid on a 12-month rolling basis, which "gives you the option to switch to a cheaper policy each year", said MoneyHelper. But this kind of policy "might offer less comprehensive cover and generally will not cover pre-existing conditions". 

Another option is "maximum benefit" policies, also known as "per condition", which "provides a fixed sum to treat each illness or injury for as long as the policy remains in force", the site continued. The "most basic and cheapest" level of cover available is "accident only", which, as the name suggests, covers accidents such as your pet being hit by a car, but not illnesses.

Before taking out any policy, check for exclusions, advised MoneySavingExpert. Pet insurance covers "serious issues, not regular check-ups or vaccinations", and "typically, you also won't be covered for pre-existing conditions if switching to a new policy".

How to reduce your pet insurance premiums

As with any insurance policy, it is important to shop around. 

Comparison websites can be helpful but may not cover all providers, so comparing the deals on a range of these sites can pay off.

Pet owners can take other action too. Keeping up with your pet's vaccinations makes insurers "view you as less likely to claim for illness", said Forbes Advisor, and this "will be reflected in your premiums".

"From a pet insurer's perspective", getting a pet neutered or spayed "lowers the chance of your animal straying", and the likelihood of resulting costs. Training pets can cut premium costs too, the site continued, as owners with "well-behaved animals" are "seen as lower risk". 

And if you have more than one pet, multi-pet insurance typically carries a discount of 10% to 15% on your policy, although it "doesn't always work out cheaper", so "compare prices against those for standard single policies".

Increasing the voluntary excess you are willing to pay on claims will also reduce your premium, said CompareTheMarket, but "make sure you don't set it so high that you can't afford to pay it if you need to make a claim". 

An alternative to pet insurance, said Which?, is "self-insuring", which "means saving a set amount to pay for potential vet bills". Just bear in mind that "you could run into veterinary costs that are higher than the amount you've saved". 

People who are on a low income, retired or get state benefits may also be able to get help with vet costs from charities such as Blue Cross, the People’s Dispensary for Sick Animals and the RSPCA .