Pet Insurance Prices Fall Amid Rising Vet Fees
Competition among providers is gradually reducing pet insurance prices, with the median annual lifetime cover estimated at £247 for dogs and £180 for cats.
Although veterinary fees and many other expenses continue to increase, pet insurance has on average become slightly cheaper as insurers compete for customers, according to new research.
Pet Ownership and Insurance Coverage in the UK
The pricing data aligns with a study revealing that one-third of UK pet owners do not have insurance, with cost being one of the primary reasons cited.
It is estimated that 60% of UK households, approximately 17 million, own a pet. The high costs associated with pet ownership have recently attracted media attention. Last month, the government announced significant reforms in the UK veterinary sector, requiring practices to provide clearer pricing information.
Scope and Types of Pet Insurance
Pet insurance primarily covers veterinary fees for illness and injury treatment. Additional policy benefits may include coverage for loss and theft. Lifetime insurance is one of the main types, offering the most comprehensive coverage but also being the most expensive.
Recent Trends in Pet Insurance Premiums
Average lifetime pet insurance premiums at the end of 2025 were about 1.6% lower than the previous year, following a 2.3% decrease in the last quarter of 2025, according to pricing consultancy Pearson Ham.
“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 reported that the median lifetime insurance quote last month was £247 for dogs and £180 for cats annually, emphasizing the competitiveness of the pet insurance market.
Choosing the Right Pet Insurance
With hundreds of products available and significant variation in coverage, selecting suitable pet insurance can be challenging. Many providers offer multiple coverage levels.
To assist pet owners, financial data provider Moneyfacts announced the winners of its 2026 Moneyfactscompare.co.uk Awards this week. ManyPets was named "pet insurance provider of the year," with Napo receiving high commendation and Petgevity being commended.
These three companies also achieved high ratings for cat and dog insurance products in Moneyfacts’ recent assessments. The ratings reflect the range of features and coverage limits offered, which can help customers find the best policy within their budget.
Other insurers receiving five-star ratings for some of their dog and cat policies include Argos Pet Insurance, Asda Money, John Lewis Money, LV=, Sainsbury’s Bank, and Tesco.
Pet Insurance Uptake and Cost Concerns
Tesco Insurance reported that one-third (33%) of pet owners do not have pet insurance, according to its latest research, leaving them vulnerable to substantial expenses if their pet becomes ill or injured.
Cost was a significant factor in this decision. More than 40% (46%) of respondents believed pet insurance was too expensive, and 29% stated they could not afford it.
