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