Data released by the Association of British Insurers (ABI) shows that pet insurance payouts reached a staggering £1bn last year – the highest on record.
However, Go.Compare Pet Insurance has calculated that would-be claims may have cost uninsured pet owners a total of £10bn.
Using a combination of FCA and ONS data, research from the insurance comparison site found that the number of pet insurance policies in place is equivalent to just 9% of all pet owners in the UK. As the vast majority don’t have protection, the total cost of claims for veterinary treatment and other emergency fees could have reached over £11bn, had all pet owners been insured.
This means that 91% of pet owners could be forking out thousands of pounds due to not being covered. The ABI has pointed to the increased costs of veterinary treatment as the cause of more expensive claims and higher payouts.
More than a fifth (22%) of uninsured pet owners told Go.Compare they don’t think taking out cover is worth the money, while more than one in 10 (16%) admitted that they can’t afford the premiums. A further 14% said they would use savings or a credit card to pay for any emergency expenses and 11.5% stated they don’t believe they’ll need the cover.
Ceri McMillian, pet insurance expert at Go.Compare, warns that remaining uninsured could be more costly now than ever: “This news from ABI has highlighted how increased costs in the veterinary industry has led to claims and payouts reaching an all-time high, meaning it’s now even more important to purchase pet insurance so that you don’t face extreme treatment costs.
“We were shocked by our recent research showing how few pet owners have cover. With this new data from the ABI, we can now also see the real cost to uninsured owners.
“While additional costs have pushed up premiums, comparing deals from multiple providers helps you find the right policy. If you’re worried about being able to afford your payments, please contact your insurer and don’t forgo cover, as it could cost you dearly in the long run.”
According to the ABI, pet insurance payouts have risen 17% from 2021, while the average pet premium was £327, just a 1% increase from 2021.
For more information about our latest research on pet insurance, visit Go.Compare.
