There were 1.3 million pet insurance claims last year, according to the figures from the Association of British Insurers (ABI), a rise of 28% on 2021 and the highest amount recorded in a year since the ABI began collecting this data in 2007.
As any pet owner will tell you, a visit to the veterinary clinic comes with a hefty price tag - so what are most claims for? Which? takes a closer look at the data to find out and reveals how you can cut the costs of insuring your furry friend.
What were the pet insurance claims for?
Three quarters of total claims were for dogs and one-fifth for cats, with the remainder for other pets.
For dogs, the number of claims jumped 35% on 2021 to 1 million, with payouts up 23% to £800m. While the number of claims for cats rose 20% to 269,000 and payouts rose by 22% to £184m.
Visiting the vet can be very expensive and the costs of treating pets - including drugs and diagnostic equipment - is largely to blame for the record payouts last year.
ABI found claims for spinal surgery, for example, can be up to £10,000, while the cost of a fractured femur for a pedigree cat is over £8,000.
Find out more:How to cut the cost of cover
The price of insuring a furry friend has risen, with ABI figures showing the average pet insurance premium is up by 1% on 2021, to £327 last year.
With the cost of living still a worry for many households, pet owners may be put off forking out for insurance - but failing to do so could see you facing an expensive surprise that makes a dog's dinner out of your bank account.
1. Look at the excess
One simple tip to reduce the cost of a policy is to tweak the excess you pay. This is the amount you immediately contribute towards any claim.
The higher the excess you are willing to pay, the lower the premium, but think carefully about how much you can realistically afford if your cat or dog does need expensive treatment.
2. Self-insure
The downside to self-insurance, however, is that if your pet needs expensive treatment before you've saved enough to pay for it, you might end up in debt. Failing to get your pet insured also means you won't be covered for public liability - for example, if your dog causes a car accident, then the driver may sue you for any damages.
Cats on the other hand are considered 'free spirits' by the law and owners are not responsible for their actions.
3. Third-party liability cover
If you are a dog owner, then one option is getting third-party liability cover only - this will cover your costs if someone decides to make a claim against you because of an injury or damage caused by your dog, so long as your pooch doesn’t have a history of aggression.
While most insurers offer it as standard or as an add-on, you can get it on its own by becoming a member of the Dogs Trust. The charity offers it as one of its perks for a £25 annual membership fee. Alternatively you can pay £750 for life membership or £12.50 a year if you're over 60.
The policy will cover you for up to £1m and while that sounds like a lot, most insurers will usually cover you for more than that. If you end up being sued for loss of earnings, costs can spiral and you might need that extra financial safety net.
4. Free vet treatment
If you on a low-income, then you may be entitled to help from charities such as the PDSA, Blue Cross and the RSPCA.
Pet owners on certain means-tested benefits can get free or subsidised veterinary care, although the charities may ask you to donate something towards the costs. Get in touch with the charities directly to find out if you meet the eligibility criteria.
5. Multi-pet policies
Own more than one pet? Then it might work out cheaper to get a multi-pet policy rather than insuring each individual animal.
You're usually allowed to add up to six pets on one policy and there's often a discount for doing so. You'll get the same amount of cover as a standard single-pet policy.
But there are a couple of snags to watch out for. Changing the cover level at renewal will mean it changes for all animals included on the policy. This could be a problem if you need different cover for each individual pet.
Also, sometimes insurers say ‘multi-pet’ when in reality it is just individual policies linked together. And finally, make sure you compare the price of individual and multi-pet policies - just in case it doesn't work out any cheaper.
6. Shop around and always read the small print
Whether you are renewing or buying a new policy, it's always worth shopping around.
Price comparison sites which allow you to view multiple pet insurance quotes at a glance are a good place to start. The main ones for insurance are Compare the Market, Confused.com, GoCompare and MoneySuperMarket.
Once you're on the insurer's website, check the policy details again, just to be sure the insurer has received all the correct information about you and is providing an accurate quote.
And remember, no matter what your policy, it's important to check the small print for any caveats that may come back to bite you in the wallet when it's time to claim.
7. Use Which? to research the best provider and policy
Once you've found a deal that is right for you, check how Which? rated the provider and policy.
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