Pet insurance explained
To help you decide if pet insurance is right for you, we've compiled a short guide that
explains what it is, how it works and how you could save money but still find the right cover.
What is pet insurance?
Pet insurance helps to cover the cost of veterinary treatment in the event of an insured pet
falling ill or being injured in an accident. Some pet insurance policies will also pay out if
a pet dies, is lost or stolen or causes injury to a third party or damages a third party's
property. Far from being limited to cats and dogs only, many pet insurance companies will
cover smaller pets too, such as rabbits - and even exotic pets, such as chinchillas and parrots.
Why do I need it?
Pets are a big part of our lives, so when they fall ill or are injured providing the best health
care for them is important. With the advances in veterinary medicine, treatments are now
available that were once reserved for humans, making once fatal conditions in animals now
treatable. Veterinary practices also have access to much more sophisticated equipment than
they did in the past, making it possible to detect and diagnose problems that would once have
gone untreated. Inevitably, these types of treatments and diagnostics come at a price, leaving
some pet owners faced with a difficult choice. For this reason, many opt to take out pet insurance
as not only does it provide valuable peace of mind against spiralling vets fees, but it also
allows them to fully explore all available treatment options.
Are all pet insurance policies the same?
Normally, there are three types of pet insurance policies to choose from:
With a time-limited policy cover is provided up to a maximum amount per condition e.g. £1,500;
however for each condition that you do claim for there is a 12 month limit, after which no
further pay outs are made. The condition will then be excluded from the policy, even if it
is renewed. Should your pet still be receiving treatment when the 12 month period comes to
an end, you will have to fund the cost of any remaining treatment yourself. As they offer
restricted cover, time-limited policies are the cheapest pet insurance option.
This type of policy covers conditions up to a maximum amount e.g. £1,500 but there is no time
limit on how long you can claim for. Once the cost of treatment has reached the maximum amount
specified by the policy there will be no further pay outs made. As such, this type of pet
insurance may not provide complete cover in the event on an ongoing illness.
- Lifetime/Covered for life policies
This type of policy provides a set amount of cover for veterinary fees, which renews each year in
line with the renewal of the policy. This means that a pet is covered throughout its lifetime providing
the policy remains active. This is the most expensive pet insurance option but the one which provides
the most peace of mind.
Cover does of course vary significantly between providers, so it's important to check exactly what level
of cover you are getting from a policy before you buy. Your considerations should include:
Aside from the cover limit per condition and any time constraints, you should also check whether the
policy covers complementary therapies such as physiotherapy, acupuncture and hydrotherapy. Some policies
will also provide cover for behavioural conditions and their treatment and for the provision of a
special diet, should it be recommended by a vet as part of treating a condition.
- Death by illness and death by accident
If a pet dies through illness or accident, some pet insurance policies will cover the purchase price
or market value of the pet, subject to conditions. This cover can be useful for owners who have
invested a significant sum in the purchase of a pedigree or exotic pet.
Selected policies may cover the cost of having a pet cremated if its death was due to
illness or accident.
If your dog injures a third party or damages their property, as its owner you could be held responsible
and liable for any resultant costs. Third party liability cover may or may not include accidental
damage cover so it pays to check this. Third party liability cover is available for dogs only as cats
are considered 'free spirits' by the courts and therefore their owners are not legally responsible
for their actions.
Under the Government's Pet Travel Scheme, your dog, cat or ferret can travel with you to certain
countries without the need for quarantine, providing a number of conditions are met. Consequently,
some pet insurance providers extend their pet insurance cover abroad. If you are planning on travelling
with your pet, you may find this option particularly valuable.
Pets can fall ill, go missing or be involved in accidents at the most inconvenient times, such as before
or during a planned holiday. If you want to cancel your trip altogether, or cut it short and return home,
then holiday cover will help towards the cost of travel and accommodation expenses that cannot be recovered.
Some policies will provide cover towards the cost of advertising a missing pet and even for offering a reward.
Cover for kennel and cattery fees helps towards the cost of boarding your pet should you need to
receive emergency treatment as a hospital inpatient.
In the next part of our guide, we take a look at the policy excess, pre-existing
conditions, pet insurance for older pets and pedigree animals and how you can save
money but still get the right cover.
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