Pet insurance complaints rise as owners face higher premiums, disputed claims and tough choices
Pet insurance is meant to provide reassurance when an animal needs expensive treatment. Yet a growing number of owners say the reality can be far more stressful: premiums that rise sharply at renewal, cover that feels narrower than expected, and claims that are rejected on conditions they did not fully understand.
Those concerns are now being reflected in official complaint volumes. The Financial Ombudsman Service (FOS), which can order insurers to pay compensation, says new complaints about pet insurance rose from 1,440 in 2020-21 to 2,286 in 2024-25—an increase of 59%. During that period, 42% of complaints dealt with were upheld.
This comes at a time when the cost of veterinary care has been under intense scrutiny. A recent investigation into vet prices by the Competition and Markets Authority found prices have risen at nearly twice the rate of inflation. Insurers and consumer groups alike point to rising treatment costs as a key pressure on premiums and payouts, but many owners argue the way policies are sold and administered is leaving them exposed.
An £8,000 bill after a policy was cancelled
Kim Watts says she was left in tears when she discovered her pet insurance policy had been cancelled, leaving her to pay £8,000 in treatment costs for her dog, Darcey.
Darcey suffered a crushed disc after what Watts described as a “savage” attack by two other dogs while out on a walk. Watts says she checked that the treatment would be covered and that the insurer confirmed it would—“on speaker phone in front of the vet”.
But nine weeks later, while reviewing pending claims on her online account, she discovered the policy had been terminated. With the treatment already under way, she paid the bill from her own savings.
Watts says the insurer later told her she was not covered because Darcey was being used as a working dog. Watts disputes that characterisation, saying dog agility is a hobby and she has never been paid for it.
Frustrated by the refusal to pay out, she took her case to the FOS. She initially lost but won on appeal and received the £8,000 back in full. However, she says she still paid £900 for specialist legal advice. A firm, Cooper&Co, described it as a “clear-cut case”.
The insurer, Purely Pets, says it implemented the ombudsman’s recommendations in full and reinstated the policies for Darcey, her border collie.
Rising premiums and the shock of rejected claims
Watts’ experience is one of many that have prompted pet owners to raise concerns about insurance—particularly around rising costs and disputes over what is and is not covered.
New statistics from the price comparison website MoneySuperMarket show that average pet insurance sales premiums rose by 15% from 2022/23 to 2024/25, before falling slightly in recent months.
Owners have described a range of frustrations: renewals going up after claims are made, premiums rising as pets get older, and policies that do not provide the cover they expected once they try to claim.
Ian Day, from Sheffield, says he cancelled his insurance policy for his 12-year-old dog, Alfie, after a claim was refused. He had filed a claim for the cost of removing a growth from Alfie’s nose, but the claim was rejected because it was more than 12 months after the problem was first spotted. Day says he was “completely knocked sideways” by the condition and realised he would have to cover the £1,200 bill himself.
In hindsight, he says the policy was basic and did not cover much. Rather than continue paying premiums, he now puts around £25 a month—roughly the cost of his previous policy—into a separate bank account to help with future vet bills.
“Even if I’ve not got the full amount, at least I’ve got something towards whatever that amount could be,” he says.
When renewal quotes jump after treatment
Other owners say the biggest surprise comes at renewal, particularly after a pet has needed tests or treatment.
Jackie Fawcett and Stephen Neild, from Manchester, say they cancelled their policy and started putting money aside each month instead. They say their annual quote jumped after their 14-year-old cockapoo, Tilly, underwent tests and treatment following a tooth removal.
“There were no surgical procedures or anything like that,” Neild says, describing the price rise as “exploitation”. The couple now maintains what they call a “rainy day fund” for any future treatment.
Tesco Pet Insurance, which provided the cover, says “the cost of claims is one of a number of factors that can affect the price of a policy at renewal” and noted that Tilly’s age was reflected in the quote. It also said the couple had a more comprehensive policy, which typically costs more than basic cover, and that alternative options were presented to them.
A growing market, and growing tension
Despite the complaints, pet insurance remains a major and growing market. About 17.2 million UK households own a pet. In 2024, a record-breaking 4.6 million pet owners took out insurance. Payouts by members of the Association of British Insurers (ABI) topped £1bn for the third consecutive year.
The ABI says record payouts have been “driven largely by the rising cost of veterinary care” and reiterated the importance of choosing the right cover. It argues that with some treatments costing thousands of pounds, the right insurance can provide peace of mind during an already stressful time.
But consumer advocates say the way policies are presented can leave people unclear about what they are buying. Which? has voiced concern about what it calls “shady stuff going on in the industry”.
Lisa Webb, a lawyer for Which?, says companies are not always clear enough with consumers about what a policy covers. She argues that policy documents can be long and hard to understand, with wording that “doesn’t make any sense” and leaves customers bogged down before they can reach the parts that matter most.
Why some owners are choosing to self-insure
Faced with rising premiums and dissatisfaction with cover, more owners are considering self-insuring—setting aside money each month rather than paying an insurer. The approach can feel more predictable, especially for people who have experienced a rejected claim or a steep renewal increase.
However, consumer advice bodies warn that self-insurance can be risky. Savings may not be enough to cover a major, unexpected bill—particularly if an animal needs specialist treatment. They also point out that many insurance policies include public liability insurance, which can be relevant if a pet causes an accident or becomes involved in a fight.
Which? also cautions that self-insuring requires “quite a lot of discipline” and is not the norm.
What the ombudsman says, and what owners can do
The FOS says customers often feel claims “have been unfairly rejected” and has emphasised the importance of insurers making policy terms transparent. It urges pet owners who are unhappy with their insurer’s decision to raise an official complaint with the company first. If the issue is not resolved, they can then take the case to the ombudsman.
In practice, the disputes reaching the FOS often revolve around the fine print: eligibility, exclusions, time limits, and definitions that can be interpreted differently by the policyholder and the insurer. Watts’ case, for example, turned on whether her dog’s activities meant it should be treated as a working dog, and Day’s experience centred on a time-based condition linked to when a problem was first noticed.
Insurance expert Kara Gammell, from MoneySuperMarket, says reviewing policies regularly is important. She also urges consumers to consider how making a claim could affect future costs, so they can make informed decisions about the level of cover they want and what they can afford over time.
Not just cats and dogs: the challenge of insuring small pets
Insurance difficulties are not confined to dog and cat owners. Julian Gold says he has struggled to insure his guinea pigs because small mammals are classed as exotic pets and therefore have higher premiums.
Gold’s three-year-old guinea pig, Remington, underwent surgery for a bladder stone. The total bill for treatment came to more than £3,000, but Remington died the day after. Gold says he wishes he had insurance to cover the treatment, but did not take out a policy because it was hard to get what he considered a sensible quote.
He gives an example of the arithmetic owners may run through: if insurance costs £20 a month and someone has five guinea pigs who live five years, that would total £6,000 in premiums over that period. Gold believes there should be a “group insurance policy” available for small animals like his.
Key issues pet owners say they face
Premium increases: Owners report higher prices at renewal, including after claims and as pets age.
Unexpected exclusions and conditions: Disputes can hinge on definitions (such as whether an animal is a working dog) or time limits (such as conditions tied to when symptoms were first noticed).
Complex policy documents: Consumer advocates say long, unclear wording can make it hard to understand what is being purchased.
Self-insurance trade-offs: Setting aside money can feel more controllable, but may not cover large bills and may mean losing benefits such as public liability cover.
Limited options for some pets: Owners of small mammals classed as exotic pets may face higher premiums and difficulty finding suitable cover.
A difficult backdrop: vet costs and hard decisions
Over the last two years, reporting on the rising cost of vet care has highlighted how financial pressure can shape medical decisions. Some owners have taken pets abroad to save on fees, while vets and animal charities have expressed concern that more owners are turning to euthanasia as bills rise well above inflation.
Against that backdrop, insurance becomes both more important and more contentious. When treatment costs run into the thousands, the difference between a claim being accepted or rejected can be financially decisive. At the same time, higher vet bills feed into claims costs, which insurers and industry bodies say influences premiums.
Finding clarity in a complicated purchase
Pet insurance is not a one-size-fits-all product. Policies vary widely in what they cover, how they define conditions, and what happens at renewal. The recent rise in complaints suggests many owners feel they are only discovering those differences when they need help most.
For some, the answer is to keep paying for cover but review it more regularly, paying close attention to terms and how claims might affect future premiums. For others, especially those who feel priced out or let down by a rejected claim, building a dedicated savings pot can feel like a more transparent alternative—though one that may not protect against the biggest bills.
Either way, the message from the ombudsman is clear: if a claim is turned down and an owner believes the decision is wrong, they should complain formally and, if necessary, escalate the case. With complaint volumes rising and a significant proportion being upheld, disputes over pet insurance are increasingly being tested beyond the insurer’s own decision-making process.