Pet insurance payouts by members of the Association of British Insurers rose 4% to a record £1.23 billion ($2.36 billion) last year as vet fees increased sharply.

A record 4.6 million pet owners took out cover, up 3% from 2023.

Payouts have more than doubled in a decade, and there were a record 1.8 million claims last year – equivalent to 4900 a day.

Dogs accounted for £933 million ($1.79 billion) of claims, followed by cats at £232 million ($445 million) and other pets at £61 million ($117 million). 

The ABI says the average claim cost has grown 3% to £685 ($1315). The Office for National Statistics recorded 9.1% inflation across vet and other pet services last year.  

As an example, the association says the cost of care when a pet eats something it should not – such as chocolate or raisins, which are poisonous to dogs – is now about £4000 ($7680). 

ABI policy adviser Jonathan Purvis says insurance allows “pawrents” to focus on caring for their pets at what is already a stressful time.

“It’s promising to see more people making sensible choices to protect themselves and their pets financially,” he said.