Pet insurance cancellation 'false economy' with 115% rise in cost of claims Go compare with our comparison table

Pet insurance cancellation 'false economy' with 115% rise in cost of claims

12 October 2010 / by Rachael Stiles

Cancelling a pet insurance policy in a bid to save money could prove to be false economy, NFU Mutual has warned.

With the average cost of pet claims rising 115 per cent in the last 12 months, cancelling a pet insurance policy might end up costing pet owners a lot more than the premiums ever did, the NFU has found.

The average cost of a pet insurance claim for a dog is £660, research shows, a few times more than the annual cost of pet insurance, so cutting costs in this way while economic times are hard could do more harm to pet owners' wallets than cancelling their policy.

The research, conducted on behalf of NFU Mutual, found that 15 per cent of people have cancelled either a health or pet insurance policy due to the recent recession.

One NFU pet insurance member, cancelled her pet dog insurance but, shortly afterwards, her dog needed treatment which cost her £800 – more than four times the annual cost of her dog's pet insurance. "I had never claimed on my pet insurance policy and was reasonably confident I could meet any vet's bills that might arise," she said , and the cost of paying the bill herself prompted her to take out a new policy.

John Kenny, chief claims manager at NFU Mutual, reminded customers that "Buying the cheapest pet insurance policy or cancelling the cover all together may seem cost effective at the time, but in the long run it could prove to be a false economy."

He added that for those who are looking for ways to save money, pet insurance does not have to be expensive, and might work out cheaper than footing the bill for their pet's care themselves.

© Fair Investment Company Ltd

ProviderOnline DiscountMax Vet Fees CoveredAdditional Features 
Intro Discount
up to £4,00045% Introductory Discount. With multi-pet cover you can mix and match Standard or Lifetime policies too - there's even a 10% multi-pet discount when you insure more than one pet.Compare pet insurance plans online and discover which level of cover best suits your needs. We love pets and we love great value!Get Quotes >
20%Up to £12,000Dog and Cat Cover - No upper age limit - Long term cover so you claim for conditions like arthritis. Vet fees paid directly - Cover for loss or theft - Vetfone is a 24 hour service offering expert advice and support about anything to do with your pets.Get Quotes >
10%Up to £6,500 (platinum cover)Save 10% when you buy Aviva pet insurance online (subject to a minimum premium. Cover for: Vet fees for illness and injury, Third party liability – up to £1 million for dogs, Boarding kennel or cattery fees – up for £1000 if you have to go into hospital for 48 hours or longer (Platinum cover only). Includes access to Pet Legal and Vet Finder helplines.Get Quotes >
20%Up to £6,000 per yearAmerican Express offers three levels of pet insurance - get 20% off when you buy online plus get one month’s free premium per policy per year, when insuring two or more pets Get Quotes >
10%Up to £14,000 per yearDog, Cat and Rabbit Cover - Petplan offers genuine Covered for Life pet insurance. Multi-Pet Discount (£12 a year per pet)90% of claims settled within 5 days - Get Quotes >
10%£7,000Prices from £4.09 for cats and £7.58 for dogs. Three levels of cover to choose from. £1,000,000 third party liability cover for dogs.Get Quotes >