Pet Insurance

A comprehensive guide to pet insurance

Pet insurance can make all the difference if a pet falls ill or suffers an injury. Here we look at how pet insurance works and how to find the right cover at the right price.

Who needs pet insurance?

Pet insurancehas a number of purposes but is generally designed to help cover the cost of veterinary treatments if a pet is ill or is injured in an accident. Most pet insurance policies are designed for cats and dogs but there are policies available that will cover rabbits, horses, exotic animals and other pets.

For most pet owners, their pets are a huge part of their lives and pet insurance can help to provide vital peace of mind. With the advances that have been made in veterinary medicines and equipment it’s now possible to treat a host of illnesses, diseases and injuries that previously would have led to fatalities. However, all this comes at a cost and veterinary bills are notoriously high. However, with pet insurance in place owners can rest assured that they will receive financial assistance when their pet needs it the most allowing them to explore the available treatment options.

So what does pet insurance cover?

As with all insurance policies there can be significant differences between the levels of cover offered by pet insurance companies. However, one of the most significant differences with pet insurance is the length of the terms and the limits that apply to individual aspects of the cover. Broadly, there are three types of policy available:

- Cover for a set period: Typically 12 months, these policies will not cover treatment when the policy ends even if the pet is in the middle of treatment and the policy is renewed. This is usually the cheapest option.

- Cover limit per condition: These policies will usually cover up to a set amount towards treatment of a condition. Once this limit is reached no further assistance is offered.

- Lifetime cover: The most complete but also the most expensive form of pet insurance, this provides a cover limit per condition per year and renews in line with the renewal of the policy. This means that a pet is covered through its lifetime as long as the policy is active.

Once you have decided what type of policy you require you should examine the features available. Typically these may include:

- Vet fees: Generally, the primary reason to take out pet insurance is to help cover the cost of vet fees. Check for limits per condition and whether there are any exclusions – circumstances in which your pet will not be covered. For example, does the policy offer complementary treatments such as acupuncture and hydrotherapy?

- Death benefit: Will you receive a payout if your pet dies of an illness or as the result of an accident? This can be a useful option for owners of pedigree dogs – typically the purchase price or market value of the pet will be covered.

- Kennel/cattery fees: If you require emergency inpatient hospital treatment then some pet insurance policies will cover the cost of accommodation for your pet. 

- Holiday cover: If your pet falls ill during a planned holiday, some pet insurers will cover the cost of accommodation and other travel expenses if you are forced to cancel or curtail a trip.

- Overseas cover: Many pet owners like to take advantage of the Government’s Pet Travel Scheme allowing them to travel to certain countries without the need for quarantine. With some pet insurance policies you can secure the same cover for your pet at home as abroad.

- Third party cover: If your dog damages someone’s property or injures a third party then you may be held liable for the costs – some pet insurance policies will help you meet these fees, subject to exclusions. Thankfully, cat owners do not have to worry about third party damage as cats are considered ‘free spirits’ by the courts and owners are not responsible for their actions.

Is there anything else to look out for?

When comparing policies you should read the terms and conditions carefully and ensure you’re receiving the level of cover you expect. Here are some additional points to look out for:

- Age restrictions: While cover is usually available for older pets, you may have to pay higher premiums or agree to a higher excess.

- Excess levels: The excess is your contribution towards a claim – setting the excess too high can negate many smaller claims.

- Pedigree animals: Pedigree pets are generally considered a greater risk because they often suffer from conditions associated with their breeding and because they are targeted by thieves. As such, pedigree animals usually face higher premiums.

- Pre-existing conditions: You may be able to get cover for your pet even if it has a pre-existing condition – but treatments relating to this condition will usually be excluded from the policy.

How much will you pay for pet insurance?

There can be substantial differences between the premiums charged by pet insurance companies so it is sensible to compare as many policies as possible before determining the right deal for you. This can be done quickly and easily with a pet insurance comparison tool – just remember to consider policy features as well as premiums.