Vet fees continue to rise and many other costs are on the increase, but pet insurance has on average become slightly cheaper as providers compete for custom, new research claims.

The pricing data coincides with a study which found that one-third of UK pet owners don’t have insurance, with cost cited as one of the biggest factors.

It is estimated that 60% of UK households – about 17 million – have a pet, and the high costs of ownership have been in the news lately. Last month, the government announced a big shake-up of the UK vet sector that ministers said should push down costs for pet owners by requiring practices to make their pricing clearer.

Pet insurance is mainly designed to cover the cost of vet fees for the treatment of illness and injury; other policy benefits can include things such as cover for loss and theft. One of the main types is lifetime insurance, which is the most comprehensive – and the most expensive.

Average lifetime pet insurance premiums ended 2025 about 1.6% lower than a year earlier after a 2.3% drop in the final three months of last year, the pricing consultancy Pearson Ham said this week.

It added: “The most pronounced year-to-date reductions [were] seen among animals aged four to six, where competitive pricing from leading brands has driven premiums down by about 4% over the year.” By contrast, premiums for older dogs and cats “have remained broadly flat year-on-year”.

Pearson Ham said the median lifetime insurance quote last month was £247 for dogs and £180 for cats a year, adding that the data “underlines just how competitive the pet insurance market remains”.

Trying to find the best pet insurance for your needs can be daunting; there are hundreds of products available, with big differences in what they offer. Many providers offer several levels of cover.

If the huge choice and various options have left you scratching your head, the financial data provider Moneyfacts has offered pet owners a helping hand. This week it announced the winners of its 2026 Moneyfactscompare.co.uk Awards, with ManyPets named “pet insurance provider of the year”. An insurer called Napo was highly commended, with Petgevity was commended.

Those three firms also scored highly in the latest annual star ratings for cat and dog pet insurance issued by Moneyfacts this week. It assesses the products available and gives the highest ratings to those that have the most extensive range of features and highest cover limits. “These can help assist the customer when looking for the best policy within their budget,” it says.

Other firms that achieved five-star ratings for at least some of their dog and cat policies included: Argos Pet Insurance; Asda Money; John Lewis Money; LV=; Sainsbury’s Bank; and Tesco Insurance.

Tesco Insurance said a third (33%) of pet owners admitted they don’t have pet insurance, according to its latest research, “leaving them at risk of paying out a huge sum if their pet were to become unwell or get injured”.

Looking at the reasons, cost was one of the main factors. More than two-fifths (46%) said they believed pet insurance was too expensive, with 29% saying they could not afford it.