Companies within the industry are warning the Government to keep an increase in the rate of Insurance Premium Tax (IPT) low in this month’s Budget.
The Association of British Insurers (ABI) has warned a rise will not only be a blow for UK business but will increase the cost to pet owners when insuring their loved animals.
The increase in from 6 percent to 9.5 percent that came into force in November 2015 could already have cost Britain’s 3 million pet owners who have insured their pets an extra £31 million in higher pet insurance premiums, according to the ABI.
Following the Association of British Insurers’ (ABI) comment Andrew Bucher, chief veterinary officer at MedicAnimal, said: “Depending on breed and size, estimates place the lifetime cost of owning a cat or dog at around £17,000 to £31,000 respectively. Owning a pet is a significant financial commitment and we understand that there aren’t any corners that can be cut when it comes to our animal’s welfare.
“Recent figures suggest that only a quarter of dogs and 15 per cent of cats in the UK are insured, leaving many owners at risk to financial shocks in the event of an accident or from regular check-ups at the vet. An increase in the cost of insurance can only leave both owners and their pets worse off.”