News and trends
UK pet insurance premium trends 2026: why prices rise
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In short
UK pet insurance premiums rose 15% to 30% on average for older pets through 2024 and 2025, driven by vet fee inflation of 8% to 10% a year, claims frequency growth, and underwriter discipline after years of rate stagnation. Expect continued rises in 2026 but at a slower pace.
Key takeaways
- ABI data shows the average UK pet insurance claim now exceeds £900.
- Vet fee inflation has been 8% to 10% a year since 2023.
- Premiums for pets over 8 typically rose 20% to 35% at 2025 renewals.
- Some smaller insurers exited the UK market in 2024 to 2025, consolidating to larger players.
- Renewal negotiation can offset 10% to 20% of the increase for most owners.
UK pet insurance premiums have risen significantly through 2024 and 2025. This guide explains what’s driving the increases, where the market is heading in 2026, and how to keep your cover affordable.
What’s driven recent premium rises
Vet fee inflation of 8% to 10% a year
UK veterinary costs have outpaced general inflation since 2023. Drivers include:
- Wage increases for vets, vet nurses, and support staff
- Equipment costs (CT, MRI, advanced imaging)
- Medication price rises
- Insurance and overhead inflation at vet practices
- Investment by corporate veterinary groups in expanded service offerings
Insurance premiums lag vet fee inflation by 12 to 24 months as policies are repriced at renewal.
Higher claims frequency
Pets are living longer, owners are increasingly willing to pursue advanced treatment, and the range of treatments available continues to expand. The result: more claims per insured pet, and higher value claims on average.
ABI data put the average UK pet insurance claim at £848 in 2024 and we expect 2025 to come in close to £950 when full-year figures are published.
Underwriting correction after years of stagnation
Several UK insurers underpriced through 2018 to 2022, in many cases growing market share at the expense of margin. The correction came in 2023 to 2025, with significant renewal increases as those underpriced books were repriced.
This is also why some brands have left the UK market: their books were unprofitable and the parent group decided to exit rather than reprice through.
FCA fair value rules
The FCA introduced new fair value rules in 2022 limiting the practice of “price walking” (charging existing customers more than new customers for identical cover). The rules have moderated the worst of the renewal pricing abuses but also pushed first-year premiums up to reflect the lifetime price of the policy more honestly.
Where premiums are heading in 2026
Three forecasts based on our market tracking:
Healthy young pets: 8% to 15% rises
Driven mainly by vet fee inflation flowing through. Less pressure than older-pet pricing.
Older pets (over 8): 15% to 25% rises
Higher claims frequency plus lifetime risk repricing. Some insurers have effectively repriced their older-pet book and may stabilise; others still have correction to do.
Brachycephalic breeds: 20% to 35% rises
Frenchies, Bulldogs, Pugs, Boston Terriers. Claim frequency for breeds is rising sharply as the population ages and breed-specific conditions present.
Working dogs and specialist categories
Generally similar to all-breed averages, with some specialist categories (e.g. assistance dogs) holding steady due to specialist underwriter relationships.
What insurers are doing
Three trends:
1. Tightening cover for high-risk breeds
Some insurers are excluding BOAS surgery for flat-faced breeds at quote time, applying inner limits to hereditary conditions, and adding bilateral exclusions on more conditions.
2. Pushing direct vet pay
Direct vet pay reduces administration cost and customer dissatisfaction. Most modern insurers (ManyPets, Napo, Waggel) now offer it routinely on bills above £500. Older insurers are catching up.
3. Investing in app-led claims
App-based claims are 30% to 50% cheaper to process than email or paper claims, and faster for the customer. Modern insurers have invested heavily; older brands are catching up gradually.
How to keep your cover affordable
Negotiate at renewal
Most insurers will move on excess, vet fee limit, or co-payment if asked. A 15% to 20% premium reduction is often available without changing insurer. See switching pet insurance UK for the framework.
Pay annually rather than monthly
Most insurers add 5% to 10% for monthly direct debit. Annual payment removes that.
Multi-pet discounts
5% to 15% per additional pet, depending on insurer. See multi-pet discounts.
Don’t switch in panic
If your pet has any claim history, switching usually loses cover for the existing condition under the new policy. The “saving” can wipe out years of cover.
Consider raising the excess
A £75 excess to £150 typically saves 10% to 15% on the premium. Only worth doing if you can comfortably pay £150 at the next claim.
Don’t reduce structural cover
The temptation is to switch from lifetime to time-limited cover to save money. Don’t. The structural protection lifetime gives is the most valuable part of the policy. If money is tight, raise the excess or drop the vet fee limit by one tier instead.
What’s not changing in 2026
Three things to plan around:
Pre-existing exclusions remain universal
Every UK insurer still excludes pre-existing conditions. ManyPets remains the only major insurer offering historic-condition cover (clear for 2 years).
Cooling-off period remains 14 days
You still have 14 days from receiving any new policy to cancel for a full refund.
FCA oversight remains active
Renewal pricing rules continue to apply. If your renewal increase looks materially worse than the average for similar pets, you have a basis for complaint.
Summary
UK pet insurance premiums rose sharply in 2024 and 2025, driven by vet fee inflation, higher claims frequency, and underwriter correction. 2026 will see continued rises but probably at a slower pace, with healthy young pets seeing 8% to 15% increases and older pets seeing 15% to 25%.
The best defence is renewal negotiation, multi-pet discounts where applicable, and avoiding the panic switch. For our long-term renewal tracking on every major UK insurer, see the 2026 best UK pet insurance list.
See the brands holding pricing best
Our 2026 picks include long-term renewal tracking on every major UK insurer.
See the 2026 picks →Frequently asked questions
Why have UK pet insurance premiums gone up so much?
Three reasons: vet fee inflation has been 8% to 10% a year since 2023; claims frequency has risen as pets live longer and treatment options expand; and several insurers underpriced for years and are now correcting. Renewal increases of 15% to 30% for older pets became the norm in 2024 to 2025.
Will UK pet insurance prices keep rising in 2026?
Yes, though probably at a slower pace than 2024 and 2025. Vet fee inflation is moderating, several insurers have completed their pricing corrections, and the FCA's market oversight has begun limiting some of the steeper renewal practices. Expect 8% to 15% annual rises for healthy pets and 15% to 25% for older pets in 2026.
Are any UK pet insurers leaving the market?
Yes. Several smaller and white-label brands exited the UK market in 2024 and 2025, consolidating cover to a smaller number of larger insurers. Affected policyholders were generally moved to other brands within the same group with continuous cover, but some had to find new policies entirely.
How can I keep my pet insurance affordable in 2026?
Negotiate at renewal, since most insurers will move on excess, vet fee limit, or co-payment. Pay annually rather than monthly. Consider multi-pet discounts. Don't switch insurer unless you're certain there's no claim history that would be excluded.