PET INSURANCE - WHAT YOU NEED TO KNOW

The UK’s regulatory system for vets is “not fit for purpose” and vets are charging pet owners double the price of online pharmacies for prescription medicines, the competition watchdog has found. Average prices at vets rose 63 per cent between 2016 and 2023 — well above the rate of inflation.

The Competition and Markets Authority has now proposed reforms for veterinary businesses in the UK, including prescription price caps and a new regulatory regime.

The consumer group Which? had called on the regulator to clamp down on insurers that have been “ripping off” consumers with “abysmal” claims handling. Now it looks like action may be taken.

Q: Apart from the high prices - were there other complaints?

There is a list of 21 proposed remedies, including a proposal that vets should be forced to publish price lists and make it clear if they are part of a larger corporate group.

This is similar recommendation from an earlier investigation into the funeral business, which forced them to publish price lists. Both vets and funeral directors deal with customers at a very stressful time at which they are not well placed to make well informed consumer decisions.

Another parallel with the funeral business is that both look like they are filled with small independent run businesses - when that is not true.

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About 60% of veterinary practices are owned by large companies compared with 10 per cent in 2013, the regulator said.

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“Pet owners are often left in the dark, not knowing whether their practice is independent or part of a chain or what a fair price looks like,” said Martin Coleman, chair of the CMA group that ran the investigation.

The CMA proposed a £16 cap on the price vets can charge for writing a prescription

Q: What are the main things to look out for when buying pet insurance?

Analysis of 58 pet insurers by the consumer group Fairer Finance found that while policies often promised general coverage of up to £20,000 a year, there were limits for certain conditions and treatments.

Ailments subject to “inner limits” included treatment for cruciate ligament damage, diagnostic scans, dental treatment and vet-recommended treatments such as hydrotherapy or physiotherapy.

For instance, one policy sells cover up to £20,000 a year but has a £3,000 annual limit on the amount it will pay for treatment for cruciate ligament damage or diagnostic scans. The problem is that single treatments can often be more than the annual limit - meaning you think you are covered, when in fact you are not and would have to pay the extra costs yourself.

Fairer Finance warned that a cruciate rupture can cost about £4,500, a CT scan costs £1,600-£2,200 and an MRI scan £2,400-£3,000. An initial dentistry consultation can cost £350 but a root canal can cost more than £2,500, depending on the pet.

Q: Are all pets covered?

Most providers offer policies for dogs and cats only. Some cover other popular pets, such as rabbits, while specialists can offer cover for reptiles and exotic birds.

I looked for a quote for a rabbit called Adam Shaw. To insure my pet Adam it would cost £223 a year.

It costs about £80 for a rabbit - so the ongoing costs are a lot more expensive than the purchase price. Also rabbits are social animals so to be fair, you should buy two.

Q: Is it just the regular health issues that are generally covered - or are there extras I should look out for?

There is increasing cover for what I would think are surprising treatments. For instance I found a policy on PetPlan which covers "the cost of hydrotherapy, herbal medicine, homeopathy or acupuncture if your vet recommends these to you"

There is also cover on some plans for behavioural treatment for psychological treatments such as separation anxiety.

Q: Apart from insurance - what costs are involved in owning a pet?

The charity the PDSA has an interesting chart on the costs of pet ownership

You shouldn't leave pets such as dogs, alone all day as you go out to work etc. So you can get into some very expensive doggy day care. There are lots of sites which can help although you should be sure to check out their safety and reliability of both the site and its members, as you are letting strangers into your home. But prices I found vary from £25-£50 a day.

If you want a pet but not all the costs, I volunteered to board Guide Dogs which means you have to pick them up from Guide Dog school each day and look after them at weekends and then keep them for 3-4 months.

Alternatively I know of a site called Borrow My Doggy where you can borrow someone's dog when they are out and need someone to look after it or just are willing to share. Again - be sure to make certain you feel safe with the site and the people you sare dealing with, before doing aything.

Q: How can I compare deals?

Comparison websites, including Moneysupermarket.com, allow you to compare prices, but not across the whole market. The RSPCA and PDSA both offer cover, with 20 per cent of premiums supporting the work of the charities.

Q: When might we see changes?

It looks as if rule changes may be introduced in the spring of 2026.

Q: What does the industry say about the service it provides?

The data reveals that a record-breaking 4.6 million pet owners took out insurance – a 3% increase since 2023 and 33% higher than before the pandemic (2019).

The ABI says: "The average claim cost has risen by 3%, now standing at £685, as pet insurance continues to play a vital role in helping families manage the cost of treatment should their pet need it. For example, the price of treatment for elbow dysplasia, the most common cause of forelimb lameness in young, large and giant breed dogs, can cost over £50,000. While the cost of care needed when a pet eats something they shouldn’t, such as chocolate or raisins which are poisonous to dogs, or a small household item, costs around £4,000."

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