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Further rise in Insurance Premium Tax will leave pet owners feeling as sick as a parrot says the ABI

The ABI is warning the Government not to penalise Britain’s pet owners in next month’s Budget with another hike in the rate of Insurance Premium Tax (IPT).

The increase in IPT from 6% to 9.5% that came into force in November 2015 could already have cost Britain’s 3 million pet owners who have insured their pets an extra £31million in higher pet insurance premiums – equivalent to the cost of 2.5 million packets of dried cat or dog food.

Any further rise in IPT would come at a time when owning a pet is not getting any cheaper. A dog will cost its owner on average between £16,000 - £31,000 over its lifetime, a cat £17,000, and even a rabbit £9,000*.

Should your pet require medical treatment, typical costs for cats include:

  • £350 for treating a wound,
  • £875 for dealing with injuries in a road accident

For treating dogs, the typical costs include:

  • £368 for arthritis treatment,
  • £1,200 for dealing with a damaged knee ligament.

Ross Penstone-Smith, ABI’s Policy Adviser, General Insurance, said:

Ross Penstone-Smith"Pet insurance is not a luxury – there is no NHS for pets and owning a pet can be expensive, especially if your pet requires medical treatment.

"With only around one in four dog and one in five cat owners currently having pet cover any further rise in the cost insurance will not encourage more owners to insure their pet, and could risk some stopping their cover. This is why the Chancellor should give Britain’s pet owners a break in the Budget."

Last updated 01/07/2016