Pet insurance prices continued to fall during the second quarter of 2026, although a sharp rebound in June suggests the sustained downward trend may be starting to lose momentum, according to the latest Pet Insurance Pricing Index from Defaqto’s Market Pricing Business.
Average top-five prices for Lifetime cover fell by -1.8% across Q2. Prices declined by -2.3% in both April and May before rising by 2.8% in June, partly reversing the reductions recorded earlier in the quarter.
Despite the June increase, Lifetime prices remain -6.4% lower than at the beginning of the year and have fallen by -7.8% over the past 12 months.
Higher-cover products lead the rebound
The change in direction was particularly evident among products offering higher levels of veterinary fee cover. Average top-five prices for policies providing at least £5,000 of cover rose by 1.7% during Q2, although they remain -5.9% lower than a year ago.
The contrasting quarterly and annual movements indicate that insurers may be beginning to adjust prices selectively, rather than applying increases consistently across their portfolios.
Price movements also varied by policy type. Maximum Benefit and Time-Limited policies recorded only modest year-on-year reductions and did not experience the pronounced fall in prices seen among Lifetime products during the first quarter.
Prices rise across the market in June
The June increase was broad-based, with prices rising for both cats and dogs, across every age group and in all UK regions.
However, annual reductions remain significant. Average top-five prices for dogs are -8% lower than a year ago, compared with a -6% reduction for cats. Prices for kittens and puppies have fallen by around -10%, while the reduction for animals aged over six is approximately -4%.
Customer contributions rise as veterinary costs continue to climb
The reduction in headline prices continues to contrast with the rising cost of veterinary care. Since 2023, Defaqto’s analysis shows that its index of pet insurance prices has increased by approximately 4%