MEDICAL INSURANCE

What is pet insurance?

Pet insurance helps to cover the cost of veterinary treatment in the event of an insured animal falling ill or being injured in an accident.

Some 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.

Insurance is not limited to cats and dogs – many companies will cover a wide variety of animals.

Why do I need pet cover?

Our furry and feathered friends 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, treatments are now available that were once reserved for humans, making curable conditions that were once fatal in animals.

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 owners faced with a difficult choice.

For this reason, many opt to take out insurance as – not only does it provide valuable peace of mind against spiralling vet fees – but it also allows them to explore available treatment options.

How are pet premiums calculated?

As with any form of insurance, this will vary between providers and there are a variety of factors that affect premiums.

Typical rating points could include the type, breed and age of animal, the sort of product selected, if your pet’s been microchipped and expected future veterinary fee inflation.

Veterinary fees in your postcode are also likely to play a part, and these are generally considered to be pricier in urban areas than rural ones. As usual, London may have the highest prices of all.

Unlike with insurance products for humans, it’s possible that gender could also be used as a factor in calculating your pet’s premium.

Types of pet insurance policy

All policies will differ as providers focus on different things – that’s why it’s always vital to read your terms and conditions. Broadly speaking, though, policies will fall into one of four categories:

• ACCIDENT-ONLY POLICIES

An accident-only policy is typically the cheapest option available, with cover levels that reflect the budget price.

As the name suggests, you should get help if your pet is involved in an accident, while some – but not all – policies will also cover emergency illnesses and/or those that result from an accident.

• TIME-LIMITED POLICIES

With time-limited pet insurance, cover is provided up to a maximum amount per condition. This could be, for example, £1,500.

When you make a claim for a condition there’ll be a 12-month limit placed on that condition, after which no further payouts will be made.

That particular condition will then be excluded from the policy, even if the policy is renewed.

Should your animal still be receiving treatment when the 12-month period comes to an end, you’ll have to fund the cost of any remaining treatment yourself.

Due the the restricted nature of the cover on offer, time-limited policies are typically one of the cheaper pet insurance options.

• MAXIMUM BENEFIT POLICIES

Maximum benefit pet insurance covers conditions up to a maximum amount – again, £1,500 could be an example – but there’s no time limit placed on how long you can claim for.

Once the cost of treatment has reached the maximum amount specified by the policy there’ll be no further payouts made.

As such, this type of insurance may not provide complete cover in the event of an ongoing illness.

• LIFETIME/COVERED FOR LIFE POLICIES

Lifetime pet insurance – also known as a covered for life 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 an animal is covered throughout its lifetime providing the policy remains active. This is typically the most expensive option, but the one which should also provide the most peace of mind.

Options to consider in pet insurance

Cover does, of course, vary significantly between providers, so it’s important to check what you’re getting from a policy before you buy. Your considerations should include:

• VET FEES

This is likely to be your primary reason for taking out a policy, so ensure that the cover levels offered are suitable for your needs and look out for any time restraints.

Check whether the policy includes the cost of consultations, examinations, tests, x-rays, MRI scans, treatments, bandages, an operation, and hospitalization, and you might also like to think about areas like physiotherapy, acupuncture and hydrotherapy.

Some policies will provide cover for behavioral 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 policies will cover the purchase price or market value of the animal, subject to conditions.

This cover can be useful for owners who have invested a significant sum in the purchase of a pedigree or exotic beast.

• CREMATION COSTS

Selected policies may cover the cost of having an animal cremated if its death was due to illness or accident.

• THIRD PARTY LIABILITY

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.

This cover is available for dogs only as cats are considered ‘open spirits’ by the courts and therefore their owners are not legally responsible for their actions.

• ACCIDENTAL DAMAGE

Accidental damage pet insurance can offer valuable cover if your animal causes damage in another person’s home or to their property, but watch out for exclusions and note that it’s very unlikely you’ll find a policy covering your own home or property.

• OVERSEAS COVER

Under the government’s Pet Travel Scheme (Pets), your dog, cat or ferret can travel with you to certain countries without the need for quarantine, providing a number of conditions are met.

Dog Insurance Facts: Did You Know?

• The average emergency vet bill for a dog is more than $700*

• The average dog visits the vet nearly three times per year*

• 76% of veterinarians would like to see more dog owners with pet insurance*

• You could more than pay for an entire year of dog insurance with reimbursement from one incident

How Much Is Pet Insurance for Dogs?

Pet insurance costs are going to vary based on the age and breed of your dog, as well as where you live. Younger dogs are going to be less expensive than older dogs because the risk of high veterinary costs increase as your dog ages. Larger breed dogs are going to be more expensive than smaller breeds because large breed dogs need higher doses of treatments, anesthesia, etc. and are prone to expensive issues like hip dysplasia, bloat and more.