Published: 6 January 2026
It can be a shock to open your pet insurance renewal letter and discover the price has increased, especially when you haven’t made any claims. We understand that this can feel confusing and unfair, leaving you wondering why your loyalty doesn’t translate to a lower, or at least stable, premium.
At British Pet Insurance, we understand this frustration. It’s natural to wonder if the price hike is due to profit margins or a penalty for staying loyal. But the reality behind insurance pricing is far more complex. Premium increases are rarely about profits – they reflect changes in veterinary care costs and economic conditions.
This guide will explain why premiums change, why the cost of pet care is rising across the UK, and what steps you can take to manage your insurance costs.
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Potentially, yes.
If you made a claim during your earlier policy year, your insurer may reassess the risk of future claims. This is especially true if:
With lifetime policies, conditions claimed for remain covered year after year, which offers valuable peace of mind, but can also contribute to a higher renewal price.
“I didn’t make a claim – why did my price go up?”
This is one of the most common questions we hear. It seems logical that if you haven’t used the insurance, your premium shouldn’t increase. But insurance doesn’t work like a savings account or a car policy with a no-claims bonus.
When your policy renews, the price is recalculated based on a mix of personal factors and industry trends. Even if you haven’t made a claim, your pet’s risk profile changes simply because they’ve aged.
Speaking of aging… the older your pet gets, their likelihood of needing medical treatment increases.
Think of it like human health – we need more medical care as we age. Pets enter their “senior” years much sooner than humans. For instance, dogs are often considered senior by age seven or eight, depending on the breed. Older pets are at greater risk of developing chronic conditions like arthritis, diabetes, or heart disease, which insurers must account for when setting premiums.
As an example, the proportion of dogs with reported skin conditions rises from about 7% in puppies to 37% in senior dogs.
Rest assured, the increase doesn’t mean cover is being reduced. It simply reflects the higher likelihood of needing veterinary care as your pet gets older.
Insurance works by sharing risk among everyone who has a policy. All the premiums paid by policyholders go into a central fund, which is used to pay out claims when needed. If the overall cost of claims goes up – because of things like a rise in vet fees or a viral outbreak – insurance companies might have to raise premiums to make sure there’s enough money in the fund to cover future claims.
Aside from your pet’s age, other factors can also cause your insurance policy’s price to go up each year. And while it might seem like insurance companies are just trying to make more money, the main reason is actually that vet care is becoming more expensive overall.
Modern veterinary medicine has made remarkable progress, offering treatments that were unimaginable just a decade ago.
While these advancements are great news for pet health, they come with higher costs. Sophisticated equipment and specialist training are expensive, and this affects the cost of care – and in turn, insurance.
A 2025 survey found that the average cost a routine vet consultation sits at £58.29, which is 8% higher than 2024.
Rising costs affect every industry, and veterinary practices are no exception. Many face higher expenses for energy, rent, supplies, and wages for skilled staff. When vets increase their fees to offset these costs, insurance premiums must rise to keep up.
You may have noticed that over the past few years, price increases have felt larger than usual. That’s because several factors have combined to create a sharp rise.
Pet ownership across the UK increased after the pandemic. In 2019, pets were found in 40% of households, but by 2021, that figure had climbed to 59%. This trend is holding steady, with 60% of UK homes now sharing their space with animal companions in 2024.
More pets mean higher demand for veterinary services, but with a shortage of qualified vets, costs have risen due to supply-and-demand pressures.
The cost of veterinary care is also influenced by broader economic factors. Unstable exchange rates can make imported medicines and specialized equipment more expensive for vets to buy.
Additionally, rising energy costs directly affect a clinic’s operational expenses, from heating and lighting to running advanced diagnostic tools. These increased overheads are often passed on to consumers in the form of higher vet bills. As the cost of treatments rises, pet insurance providers may adjust their premiums to cover the greater expense of claims.
Faced with higher premiums, it might be tempting to cancel your policy and take your chances. However, this can be a risky move.
If you cancel your policy, you lose cover for any pre-existing conditions your pet has developed – even if you haven’t claimed for them. Most insurers won’t cover these conditions if you try to switch policies later.
For example, if your dog develops arthritis, you’ll handle the full cost of treatment, which could total thousands of pounds.
Pet insurance is still the best safety net against costly, unexpected vet bills. A single surgery or long-term treatment can easily exceed £3,000, making insurance a worthwhile investment for most pet owners.
While rising costs are unavoidable, there are ways to keep your premium more manageable.
Choosing a higher excess – the amount you pay toward a claim – can lower your monthly premium. For example, increasing your excess from £75 to £150 or £200 can make a noticeable difference.
Make sure your policy aligns with your needs. If you have a healthy, indoor cat, you might not need a high annual vet fee limit. Adjusting your cover can help reduce costs while still protecting your pet.
Insuring your pet at a young age locks in cover for life, including any conditions that may develop. Switching policies later can be more expensive because pre-existing conditions won’t be covered.
Keeping your pet healthy can reduce the likelihood of claims. Regular vaccinations, keeping a healthy weight, and dental care can prevent chronic issues that lead to higher vet bills. Plus, keeping up with these routine health measures is typically a condition of most pet insurance policies.
We know price increases can be frustrating. But as the cost of quality vet care goes up, so do our premiums. Our main goal at British Pet Insurance is to make sure your pet can get the best treatment possible, without you having to worry about the cost.
Understanding what’s behind your renewal premium – like new medical tech or just general inflation – can help show the real value of your insurance. It’s about protecting you and your furry family members when it matters most. With a few tweaks, you can keep your policy affordable and maintain that all-important peace of mind for whatever lies ahead.
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