Sainsbury’s Finance has launched a new lower cost Pet Insurance policy option, that unlike some other tiered offers, not only offers £3,000 towards veterinary fees but also covers up to this amount for dental cover in relation to both injury and illness.

Over a quarter(1) of policies for cats and dogs don’t offer this level of cover on vet fees, and only 37% of policies for cats and 38%(1) of policies for dogs offer at least this level of dental cover.

Depending on the level of excess, Sainsbury’s Finance’s new Pet Insurance policy will have premiums that are typically up to 25-30% lower than its higher level policy, which offers veterinary fee cover of up to £7,500 and a wide range of benefits.

By offering two types of pet insurance policies with different levels of cover and pricing, Sainsbury’s Finance hopes more people will take out cover for their cats and dogs.

Research shows that only around 26%(2) of cats and dogs are insured, so the vast majority of pet owners simply have no safety net and are therefore having to find potentially large sums of money for unexpected vet’s bills. Indeed, research from Sainsbury’s Finance(3) reveals that 1.6 million people have had to put down at least one pet dog or cat over the past five years because they could not afford the cost of their veterinary bills. In addition to this, over the past five years, 2.5 million people admitted that they have declined recommended treatment for their pet cat or dog because they simply couldn’t afford the cost.

Neal Devine, Sainsbury’s Pet Insurance Manager said: “With the cost of treatments and vets’ fees rising, it’s now more important than ever to have pet insurance. However, worryingly as a result of the current economic climate we estimate(4) that as many as one million pets could see their cover cut back or taken away as their owners look to reduce their insurance bills.

“We now offer two levels of cover for two different prices, so whatever their budget we hope that more cat and dog owners will look to ensure that their pets are protected by quality insurance.”

Key elements of cover from Sainsbury’s new lower cost ‘Option 1′ pet insurance include:

* Vets fee cover £3,000(5)
* Dental cover up to £3,000 - injury and illness(5)
* Personal liability £1m
* Advertising £1,000, reward £250

Good quality pet insurance does not need to be expensive, good cover at a competitive price can be found by shopping around.

(1) Defaqto September 2008

(2) Datamonitor UK Pet Insurance 2008 report

(3) ICM interviewed a random sample of 1108 adults aged 18+ who own or have owned a cat or dog in the last 5 years. The interviews were conducted via an online omnibus survey between 21st - 22nd July 2008. Surveys were conducted across the country and the results have been weighted to the profile of all adults. ICM is a member of the British Polling Council and abides by its rules. Further information available at www.icmresearch.co.uk

(4)Based on Sainsbury’s Finance analysis of research from Deloitte on the percentage of people looking to give up insurance cover as a result of the credit crunch and Sainsbury’s Finance’s research into how many cats and dogs are insured. Sainsbury’s Finance research was based on 963 people being interviewed by GfK NOP between 2nd and 4th November 2007. Interviews were conducted over the phone. The consumer omnibus research conducted by GfK NOP uses a large sample size that reflects the demographic profile of GB. Given this it is possible to extrapolate figures and make projections from the research results within appropriate confidence intervals.

(5) 12 month cover only.

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