If you are worried about paying increased pet insurance premiums in 2011, you are not alone. In fact, many UK pet owners are looking at substantial increases in premiums due to an increase in claims, as well as rising veterinary bills. Independent market analysis firm Datamonitor says that double-digit rises in premiums could be on tap for 2011.

Advances in technology have made for longer and healthier lives for our pets, but they have also resulted in rising vet bills and more claims being processed. “Claims inflation” is running anywhere from 5% to 15%, depending on the insurer.

Pet insurers have not been able to increase their revenue pool through an increase in new policy sales. That is partly because consumers are trying to save money by cancelling or not taking out pet insurance policies and, because of the recession, fewer people can afford to have pets to begin with. Therefore, insurers must increase premiums to protect profit margins.

But, it definitely pays to compare pet insurance when trying to find the best pet insurance for your furry friend. Many insurers are aiming to increase their market share by offering low premiums for new customers. You should expect, however, to experience a jump in premiums should you make a claim against your policy. The outlook isn’t totally gloomy, though. As the economy recovers and more consumers insure their pets, premium increases should be lower in 2012 and thereafter.