Ask the expert: 55% premium increase on lifetime pet insurance cover

From Margaret

Once you have signed up for ‘lifetime pet insurance‘ can the company you are with just put the premiums up at will? Should they increase your premium because you have made a large claim for surgery?

I ask because my premiums have jus gone up a staggering 55% to £51 a month! My dog is only 8 years old – what will my premiums be when she is 16!!

I feel completely helpless as if I re-insure pre-existing conditions are excluded.

Hi Margaret,

Thank you for contacting me today.

Pet insurance premiums, like other insurance premiums, can increase at the will of insurance companies. It’s generally stated in the terms and conditions that they will “review” your premium and excess at renewal and there’s nothing preventing them to increase by even 200% if they wish.

However a 55% increase is quite something and I would recommend you give a call to your insurer to query it. They may be able to reduce it if you threaten to leave but be aware that they may have a kind of decision matrix to help staff determine which type of customers they want to retain and how much they can reduce the premium by. They may also offer you to “downgrade” to a lower level of cover.

Different companies calculate premiums in different ways. Some will give a bigger premium increase to customers who have claimed. The increase can also differ on the recent claim amount.

You mentioned that your dog is now 8 years old. 8 is generally the age when insurers re-categorize your pet as an older dog. Older pets are more likely to claim so they increase premiums and excesses. You shouldn’t expect a 50% increase each year in the future but you can’t rule out further increases.

It is very unfair as you are not able to switch without effectively losing the benefit of claiming on existing conditions. You have to decide whether it is still worth paying the premiums or whether you prefer to “self insure”, i.e. save money for a rainy day.

Also give consideration to how your claims have been handled and paid so far by your provider and if your dog’s pre existing conditions are ongoing or likely to reoccur. Bear in mind that as your pet gets older, it becomes more likely to need veterinary care.

I hope you find this useful. Please let me know if you have more questions. I would also encourage you to submit a review of your current provider on http://www.bestpetinsurancereview.co.uk/ for a chance to win £50 Pets at Home vouchers.