Why Pet Insurance Premiums Are Increasing in 2025
If your pet insurance renewal has gone up again this year, you’re not alone. In 2025, UK insurers are continuing to raise prices across most policy types. Even owners who haven’t made a claim are seeing higher monthly premiums. Understanding what drives these increases can help you manage the cost and still keep your pet properly protected.
Age and Breed Risk
As pets get older, they’re more likely to develop illnesses that require ongoing treatment. Insurers raise premiums each year to reflect that higher risk. Some breeds also attract higher base rates because of hereditary or chronic conditions, like hip dysplasia in Labradors or heart disease in Cavalier King Charles Spaniels.
If you want to compare what’s considered a high-risk breed, see our guide on Best Value Pet Insurance UK 2025, which explains how insurers assess breed-related costs.
Rising Veterinary Fees
Vet care costs continue to rise faster than inflation, driven by new diagnostic equipment, specialist treatments, and staff shortages. These increases directly impact insurance pricing, as insurers must pay out more per claim.
Some owners reduce costs by choosing policies with higher voluntary excess. You can learn how this affects overall payouts in Pet Insurance Excess Explained UK 2025.
Inflation and Medical Advances
Inflation pushes up the cost of medicines, tests, and surgeries, while advances in veterinary medicine mean pets receive more complex treatments than ever before. This progress is great for pet health but adds pressure to insurer budgets, which is passed on through annual price rises.
Claims History and Location
Your personal claims record also matters. Multiple claims or long-term conditions may lead to larger renewals. Insurers also price differently across UK regions — vet costs in London, for example, are significantly higher than in rural areas.
Our article on Pet Insurance Claim Denials UK 2025 explains how claims are assessed and what to do if an insurer refuses payment.
Policy Type and Cover Level
Comprehensive lifetime policies naturally cost more because they guarantee cover for recurring conditions each year. Time-limited or accident-only cover is cheaper but provides less protection. Before reducing cover to save money, compare your options using our Affordable Pet Insurance UK 2025 guide.
How to Keep Premiums Manageable
You can often limit price increases without losing key benefits. Try these approaches:
- Increase your voluntary excess slightly.
- Pay annually instead of monthly to avoid admin fees.
- Ask your insurer for loyalty or multi-pet discounts.
- Remove add-ons you no longer need.
- Compare quotes at renewal using independent brokers or comparison tools.
For clear, impartial advice on renewing or switching, visit the MoneyHelper website, which outlines what to check before agreeing to a higher premium.
FAQs – Pet Insurance Premium Increases UK 2025
Why has my pet insurance gone up if I didn’t claim?
Insurers increase prices as pets age and vet costs rise, even without a claim.
Do premiums go up every year?
Most policies renew annually with an age-related adjustment. Lifetime cover tends to rise steadily over time.
Can I switch to a cheaper insurer?
You can, but any existing or recurring conditions will be classed as pre-existing and excluded by the new provider.
Will choosing a higher excess reduce my premium?
Yes, a higher voluntary excess can lower monthly costs, though you’ll pay more per claim.
What’s the average annual increase for 2025?
Most owners report increases between 10% and 25%, depending on the policy type and pet age.
Conclusion
Pet insurance premiums in 2025 are rising for reasons largely outside owners’ control — age, inflation, and higher vet bills all play a role. But you can still make smart choices to keep costs manageable.
Review your renewal quote carefully, check what’s included, and use trusted resources like MoneyHelper before deciding whether to stay or switch. A little comparison and negotiation can make a big difference to your long-term pet care budget.
