Pet insurers paid out record £785m in 2018

Figures from the Association of British Insurers show pet insurers paid out a record-breaking £785m in 2018 to cover the unexpected costs of owning a pet. Picture: Andrew Matthews/PA Wire

The jump in the cost was driven by a significant increase in the average claim size as veterinary treatment becomes increasingly sophisticated, the ABI said.

The average claim cost climbed by £36 year-on-year to £793 in 2018.

But average premiums were down slightly for the first time in eight years, at £279 in 2018 compared to £281 a year earlier.

Over the past 10 years, the average claim has increased by 75 per cent, while the average premium has increased by 50 per cent, according to the ABI’s data.

The ABI also said more pets were covered by insurance last year than it has seen ever before - with nearly 4.3 million pets being protected.

Despite more pets being insured, there is still a “worrying level” of under-insurance among cat owners, the ABI said.

Only 1.3 million cats are insured compared with 2.8 million dogs - potentially leaving the owners of 6.3 million cats at risk of having to foot expensive vet bills out of their own pockets.

The ABI’s senior policy adviser for pet insurance, Joe Ahern, said: “There is no NHS for animals, so if you’ve not got a pet policy in place - you risk having to foot veterinary bills out of your own pocket.”