Pet insurance is getting cheaper, but the biggest savings are on the policies that cover the least.
Average top-five prices for Lifetime pet insurance fell 14% over the past 12 months, according to Defaqto’s latest Pet Insurance Pricing Index. Prices fell 6.1% in the third quarter of 2026 and are now 12% lower than at the start of the year. June’s rebound did not last: prices fell 1.7% in July, 4.1% in August and 0.4% in September.
The cuts have not been even. Prices for policies offering at least £1,000 of veterinary fee cover fell 14% over the year. Prices for those offering at least £5,000 fell 7%. Defaqto said it has seen insurers cut prices specifically on their lowest cover levels while holding prices steady, or making smaller reductions, on higher-cover products.
The steepest falls were also concentrated in Lifetime cover. Maximum Benefit and Time-Limited policies fell by about 4% and 1% respectively. Defaqto said competition was less intense in those segments, where fewer brands offer cover.
Prices fell for every animal group:
“A 14% annual reduction in average top-five Lifetime prices demonstrates the strength of competition in the pet insurance market,” said Frances Luery, product manager at Defaqto.
Luery said the CMA’s veterinary reforms could start to take effect in 2027. “Clearer prices and written estimates should help owners make more informed decisions, but their effect on veterinary fee inflation will take time to emerge,” she said. Defaqto said in April that it did not expect the reforms to lower premiums.
Luery also pointed to ManyPets’ move to offer indicative quotes through ChatGPT as an early sign of how AI could change the way customers shop for cover.
For brokers handling pet cover through personal lines or affinity schemes, the gap between cover levels is the detail to watch. The cheapest Lifetime quotes are falling fastest, but with vet fees still high, a £1,000 limit can be used up quickly. The price of higher-cover policies has fallen too, which makes them easier to recommend.
