Pet insurance complaints rise as owners question costs, cover and cancellations
A growing anxiety for pet owners
Pet insurance is intended to offer reassurance when an animal needs urgent care, but a rising number of owners say the experience is becoming more stressful, not less. Concerns range from premiums increasing sharply to claims being rejected on conditions that customers say they did not properly understand at the point of purchase.
Those worries are being echoed in formal complaints. The Financial Ombudsman Service (FOS), which can order insurers to pay compensation, reports a marked rise in pet insurance cases in recent years. At the same time, industry data show that payouts have remained high, while consumer groups warn that policy documentation can be difficult to navigate.
The result is a complicated picture: more people are buying pet insurance, more money is being paid out, but more owners are also disputing decisions and questioning whether the cover they have is fit for purpose.
An £8,000 bill after a policy was cancelled
One owner, Kim Watts, says she was left facing an £8,000 vet bill after discovering her pet insurance policy had been cancelled. Her dog, Darcey, suffered a crushed disc following what Watts described as a “savage” attack by two other dogs while out on a walk.
Watts says she checked that Darcey was covered for the required treatment, and that the insurer confirmed the cover “on speaker phone in front of the vet”. But nine weeks later, while reviewing pending claims on her online account, she found the policy had been terminated. She says she paid for the treatment using her own savings.
According to Watts, the insurer said she was not covered because Darcey was being used as a working dog. Watts says dog agility is her hobby and that she has never been paid for it.
She took her case to the FOS. Watts initially lost her claim but later won on appeal and recovered the £8,000 in full. She says she still paid £900 for specialist legal advice, with firm Cooper&Co describing it as a “clear-cut case”.
Her insurer, Purely Pets, says it implemented the ombudsman’s recommendations in full and reinstated the policies for Darcey, her border collie.
Watts says the experience left her feeling “badly treated”, adding that she was not given an email to read and instead saw a screen message stating “policy cancelled”. She says she believes the insurer assumed she would not challenge the decision.
Premiums rising, and owners feeling priced out
Watts’ case sits within a broader set of concerns being raised by pet owners. Complaints frequently include rising costs, renewal prices increasing after claims are made, premiums rising as pets get older, and owners not receiving the cover they expected.
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. Even with that recent easing, the overall rise has contributed to a sense among some owners that pet insurance is becoming harder to justify—particularly for older animals or those with conditions that may trigger exclusions.
At the same time, the UK remains a nation of pet owners. About 17.2 million UK households own a pet, and reporting over the last two years has highlighted the rising cost of veterinary care. Vets and animal charities have also expressed worry that as bills rise well above inflation, more owners may consider euthanasia.
When a claim is refused: the impact of time limits and definitions
Some disputes are not about cancellations but about how policy terms are applied at the point of claim. Ian Day, from Sheffield, says he cancelled his insurance policy for his 12-year-old dog Alfie after a claim was refused.
Day filed a claim for the cost of removing a growth from Alfie’s nose. He says it was rejected because it was more than 12 months after the issue was first noticed. Day describes being “completely knocked sideways” by the condition and says he soon realised he would have to pay the £1,200 bill himself.
Looking back, he says the policy was “a very basic package that didn’t cover much at all”. His response has been to set aside money each month instead. Day now puts about £25 a month—roughly what he previously paid in premiums—into a separate bank account to help with future vet bills. He says that even if he cannot save the full amount needed, “at least I’ve got something towards whatever that amount could be”.
Renewals after treatment: “rainy day funds” and frustration
Other owners say the biggest shock comes at renewal time, especially after any interaction with the vet that results in tests or treatment. Jackie Fawcett and Stephen Neild, from Manchester, say they cancelled their policy and started putting money aside each month after their annual quote rose.
The couple’s 14-year-old cockapoo, Tilly, had tests and treatment following a tooth removal. Neild says there were no surgical procedures, and he described the price increase as “exploitation”. They now rely on 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 several factors that can affect renewal pricing, and it also noted that Tilly’s age was reflected in the quote. The company says the couple had a more comprehensive policy, which typically costs more than basic cover, and that alternative options were presented to them.
More policies, more payouts—and more disputes
Despite the complaints, demand for pet insurance remains strong. A record-breaking 4.6 million pet owners took out insurance in 2024. 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”. It also reiterates the importance of choosing the right cover, noting that with some treatments costing thousands of pounds, suitable insurance can provide peace of mind during an already stressful time.
But the rise in payouts has not eliminated consumer dissatisfaction. The consumer group Which? says it is concerned about what it calls “shady stuff going on in the industry”, focusing on whether customers understand what they are buying and what it does—or does not—cover.
Complex documents and unclear cover
Which? argues that some insurers are not being clear enough with consumers about the product they are purchasing. Lisa Webb, a lawyer for Which?, says companies often rely on lengthy documents and confusing wording.
She says policies can be written in a way that leaves customers feeling bogged down: by the time they start reading, they may feel they cannot finish. That matters because the fine print can include conditions that later determine whether a claim is accepted, partially paid, or rejected.
For many owners, the practical challenge is not simply the existence of exclusions—insurance products often have them—but whether those exclusions are understood before a problem arises.
Self-insuring: a growing trend, but not without risk
Faced with rising premiums and disappointment over cover, more owners are considering “self-insuring”—setting aside money each month instead of paying an insurer. Webb says more people are looking at this option, but warns it requires “quite a lot of discipline” and remains outside the norm.
Other consumer advice bodies also warn that self-insuring can be risky, because savings may still fall short of a large bill. They also point out that many pet insurance policies include public liability insurance, which can be relevant if a pet causes an accident or becomes involved in a fight.
For some owners, the decision becomes a trade-off between predictable monthly premiums and the uncertainty of potentially large, sudden costs.
Ombudsman complaints rise sharply
The increase in dissatisfaction is visible in ombudsman figures. In 2020-21, the FOS received 1,440 new complaints about pet insurance. By 2024-25, that number had risen by 59% to 2,286. During that period, 42% of complaints dealt with were upheld.
The FOS says customers often feel claims “have been unfairly rejected” and stresses the importance of insurers making policy terms transparent. It urges unhappy customers to raise an official complaint with their insurer and, if the issue is not resolved, to contact the ombudsman.
Veterinary costs under scrutiny
Which? links the rise in complaints to greater scrutiny of the sector following an investigation into vet prices by the Competition and Markets Authority. The investigation found that prices have risen at nearly twice the rate of inflation.
For owners, that backdrop matters because higher veterinary fees can translate into higher claims costs for insurers, and ultimately into higher premiums or tighter underwriting. It can also make any gap in cover more financially painful when treatment is urgently needed.
Not just cats and dogs: the challenge of insuring small animals
Insurance difficulties are not limited 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 attract 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 the animal died the next day. Gold says he wishes he had insurance to cover the treatment, but did not take out a policy because “it’s hard to get a sensible quote”.
He illustrates the arithmetic that owners sometimes weigh up: “If it’s £20 a month and you have five guinea pigs who live five years, then that’s £6,000 you’ll be paying in insurance over that five years.” Gold believes there should be “a group insurance policy” for small animals like his.
How to approach pet insurance decisions
With premiums shifting and disputes rising, some experts argue that the most important step is to treat pet insurance as a product that needs regular review, rather than a set-and-forget purchase.
Insurance expert Kara Gammell, from MoneySuperMarket, says reviewing policies regularly is important. She urges consumers to examine how making claims can affect future costs so they can make informed decisions.
That may include understanding the difference between basic and more comprehensive cover, checking how conditions and time limits are defined, and considering how a pet’s age could affect renewal pricing.
Key issues owners say they are encountering
Policy cancellations or terminations discovered after claims are submitted or while claims are pending.
Disputed definitions, such as whether an activity counts as “working” and affects eligibility for cover.
Time-based exclusions, where claims may be refused if treatment occurs more than a set period after symptoms were first noticed.
Renewal increases after claims, or after tests and treatment, with owners questioning the scale of the change.
Age-related pricing, which can make cover for older pets significantly more expensive.
Higher premiums for small mammals classed as exotic pets, making it harder to find what owners consider affordable quotes.
What complaints data suggests about the market
The rise in FOS complaints, alongside a substantial uphold rate, suggests that disputes are not rare edge cases. For consumers, it is a reminder that challenging a decision can make a difference—particularly if they believe a claim has been rejected unfairly or a term has been applied incorrectly.
For insurers, the figures underline the importance of clear communication and transparent policy wording. For pet owners, they reinforce a practical reality: the value of insurance is only fully tested when a claim is made, and that is often when the fine print becomes most consequential.
Where owners can turn when things go wrong
The FOS encourages customers who are unhappy with an insurer’s decision to raise an official complaint with the company first. If there is still no resolution, the ombudsman can be contacted to review the case.
As more households weigh the costs of care, the debate around pet insurance is likely to remain focused on a central question: whether the cover on offer is understandable, fairly priced, and reliable when owners need it most.