Insurers sharpen their teeth

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I was stunned recently when I received the annual premium for my three-year-old greyhound, Maddy. Last year my insurer, Sainsbury's Bank, charged me £225. This year it wants £515 - a rise of 129% - even though I have not made a claim.

An insurance company called Axa, provides the insurance for Sainsbury's (Axa also underwrites well over half a million pet insurance policies sold by a number of partners, including John Lewis's, the RSPCA, and the Post Office) has introduced a "selected breeds" category: they are German shepherds (alsatian), bulldogs, estrela mountain dogs, greyhounds, great danes, leonbergers, Irish wolfhounds, Newfoundlands, old English sheepdogs, rottweilers, St Bernards and Pyrenean mountain dogs.

Apparently the claims record of these breeds of dogs is too high to continue insuring them at the old rates. The veterinary bills they run up are higher than for other breeds and they require many more visits to the vet than other dogs.

A spokesman for the insurer said that the dogs included in the 'selected breeds' category are those on which the company has experienced a high average claims cost and a high claims frequency. Together these produce a high loss ratio.

For example, the average claims cost for greyhounds is 10% higher than all other dogs on Axa's book of insurance business, whilst visit frequency runs at 30% higher.

But somewhat surprisingly, other insurers do not seem to have the same experience. I compared Sainsbury's premium with others in the market and sainsbury's was the most expensive – and one I fould was less than half the price.

I now clearly understand how pet insurance works and I would not be surprised if the Sainsbury's policy is actually the most expensive in the UK for the 'selected breeds'. Axa is amongst the biggest providers of pet insurance and they will be charging a lot more money fromsome policyholders. Yet there are alternatives if you shop around. They can save you hundreds of pounds.

I have now reinsured my greyhound - which retired from a dismal racing career at the tender age of two - for £249 with M&S. Other policies were good value, but I chose M&S because of its cost and range of cover. I do not agree that greyhounds have higher vet bills. In my experience retired greyhounds are neither more dangerous nor significantly more likely to suffer from illness than other breeds. As most Greyhounds are very likely to be ex-racers, any increase in premiums might lead to them being returned to the Retired Greyhound Trust. It could also put potential owners off adopting them in the first place.

A spokesman for the RSPCA told me that its pet insurance is as much about helping all animals as about insuring specific pets. One of the RSPCA's main focuses is promoting responsible pet ownership and pet insurance is a key aspect in this.