Types of Pet Insurance

Is Pet Insurance Worth It?

Consider a situation in which you face an expected expense related to your pet. Would you be able to deal with the cost out of pocket?

Many pet owners think of pet insurance as an unnecessary expense. On average, pet insurance costs owners £271 a year, making this concern an understandable one.

However, what you have likely not considered is that the average pet insurance claim is £817, according to ABI, which is far more than the annual cost of the insurance. This does not take into account a situation in which, for example, your pet develops a major or on-going illness. In such a case, insurance claims can rise into the thousands of pounds.

On the surface, it may seem that you are unnecessarily spending hundreds of pounds on pet insurance. However, in a case where you need to submit a claim, the same insurance can help you save far more money than it costs.

Which Animals Can You Insure?

In the UK, pet insurance policies are generally taken out for cats and dogs. In fact, most insurance providers will only provide dog insurance and cat insurance. While it is possible to find insurance policies for other animals, like smaller mammals (rabbits, hamsters, etc.), exotic pets, and horses, they are not always advantageous.

This is for two reasons: many of these animals have shorter lifespans than cats and dogs, so the advantages of insurance are not as great. Furthermore, exotic and expensive pets are harder and more expensive to insure because they are specialist and therefore not all insurance companies offer cover.

When it comes to venomous animals like snakes, very few insurance companies offer pet insurance for them. However, the inherent danger of such animals means that you should consider liability insurance for them.

If your pet isn't a cat or dog but they are expensive or valuable, like a horse, it is still worth considering insurance. In case of theft or unexpected vet bills, you may find that the insurance will be worthwhile.

What Does Pet Insurance Cover?

Each insurer’s plans are unique and offer a varied breadth of cover. However, most pet insurance policies will provide cover for some or all of the following:

• Vet Fees: This is the ultimate reason most pet owners choose to insure their pets. Pet insurance covers a wide range of treatments, including treatment to address accidental injuries, illnesses, and long term conditions. Some insurance providers may also cover complementary treatments, like acupuncture, homeopathy, and hydrotherapy. However, the range of treatments covered by insurance differs from policy to policy so you should make sure you carefully read through your insurance policy documents to identify what treatments will or will not be covered.
• Death by Accident or Illness: This helps cover the cost of your pet if they pass away. Depending on the policy terms, this will usually cover some or all of what you initially paid for your pet, or what you could have sold them for in life. If you paid a large fee for your pet, this cover may be particularly important for you. However, keep in mind that most insurance policies have an age limit after this they won't provide their death by accident and illness cover.
• Dental treatment: While most pet insurance policies provide dental cover, this is not the case for all policies. If included, cover is usually limited to the cost of dental care required due to an accident, injury, or illness. However, some policies may also cover the cost of cosmetic work and some may only offer cover for accidents.
• Complementary Therapy: Complementary therapy, which includes physiotherapy, acupuncture, and hydrotherapy may be prescribed by a vet in conjunction with traditional medicines and surgery to treat a range of conditions and illnesses. It is different to alternatively therapy which is used in place of conventional medicine and is unlikely to be included in cover. Not all insurance policies include cover for complementary therapy and many of those that do will have a limit applied that will be deducted from the policy's overall cover limit.
• Third-Party Liability: This cover is only available for dog insurance policies and it covers any potential legal costs and compensation requirements in the case that your dog causes damage to a third party. This can either be in the case of property damage or injury to another person or animal. Keep in mind that if the injury caused by your dog is serious or has led to the death of another person, compensation may be in the hundreds of thousands of pounds. Lifetime Pet Cover do not provide cover for Third-Party Liability.
• Missing Pet: If your pet goes missing, pet insurance may help cover the cost of advertising the lost pet, as well as the cost of any reward offered for information. However, insurers will likely require that you first report the loss (or theft) of the pet to the police before they pay out your claim. If the pet is not found within 30 days of the loss, most insurers will also cover the cost of replacing the pet. This cost will be the same as the purchase price of the pet that has gone missing.
• Overseas Travel: If you travel abroad with your pet, your insurance policy may provide cover if your pet suffers an illness or accident or requires vet treatment whilst outside of the UK. Some policies may also cover the cost of cancelling a holiday and repatriation if your pet suffers an illness in your home country while you are traveling. Many policies that include overseas cover will have a limit on the number of days they will provide cover for.
• Boarding Costs: If you are hospitalised and need to ensure that your pet is taken care of, your insurance may cover the cost of boarding your pet in a kennel or cattery. Depending on the policy, it may also cover the costs of paying for a friend or family member to take care of your pet. However, most policies require that you have been in the hospital for at least two to four days consecutively (the specific number of days varies from policy to policy) before they pay out.
• Euthanasia, Cremation, and Burial: Some pet insurance policies will cover the costs of euthanizing your pet under a vet’s recommendations, as well as the costs of cremating or burying your pet, but this cover is not common.
• Behavioural Problems: Some pet insurance policies will cover the cost of treating behavioural problems. The policy terms may require that a professional organisation or a vet carried out the treatment before they pay out the claim.

What Are the Types of Pet Insurance Available in the UK?

While each provider's policies are different, in general, there are 4 pet insurance types that you can choose from. These are:

How Much Does Pet Insurance Cost?

The cost of pet insurance in the UK varies greatly depending on the type of pet you have and the insurance policy that you have opted for. Insurance for dogs is usually higher than that for cats and premiums vary greatly based largely on breed, age, and location.

According to Nimblefins, the average cost of insuring a dog is £274 annually. For cats, the annual average paid for pet insurance £125. However, this average is dependent on a few factors so you may find a policy that is considerably cheaper or more expensive. 

Keep in mind that several factors affect the cost of pet insurance. This includes where you live and the age of your pet. If you have a pedigree pet, you will likely have to pay more as well. Finally, the type of insurance that you choose will also play a large role in determining the amount you pay for your pet insurance – lifetime insurance is significantly more expensive than accident-only insurance, for example but the cover you get in return can be a lot higher.

Final things to consider when buying pet insurance

When choosing an insurance policy, make sure you read all the terms and conditions carefully before purchasing. This will help protect you from the possibility of you unknowingly choosing a policy that does not offer you the benefits you are expecting and require. Furthermore, keep in mind that new policies may not cover claims for accidents or illnesses that occur within a short period of time after the start date of a policy. This is called the cooling off period and for many policies this will last for 14 days after the start date of the policy but it will vary from one policy to another and may be different for accidents and illnesses in the same policy.

Many pet insurance policies require that pets undergo regular treatment, such as vaccinations. Depending on the terms of your policy, if you do not keep up with these treatments, your insurer may refuse to pay out a claim related to the conditions that the vaccinations will have provided protection against.

Keep in mind that most insurance policies will not cover any pre-existing conditions which are any conditions, illnesses, injuries or bilateral conditions which occurred or first showed clinical signs prior to the policy start date, whether diagnosed or not, or existing in any form even if the diagnosis changes. If the insurers quote process requires it, make sure to declare any such conditions that your pet may have when purchasing the policy. If you do not do so, your policy may be void, and your insurer may not pay out any claims.

If your pet does have a pre-existing condition, make sure you read the terms and conditions for a policy and/or call the insurance provider to check what will or won't be covered. With a Lifetime Pet Cover policy, there are certain conditions under which we will no longer consider a condition to be pre-existing. These are:

• The condition was treated, and the pet has fully recovered without leaving susceptibility to future problems or underlying weakness and since that point;
• The condition has been treated and the pet has not received any treatment for or in connection with the condition for a continuous period of 24 calendar months;
• There are no symptoms or vet consultations relating to the condition for the previous 24 months.

For more information on pre-existing conditions, we have a guide to help.

Pet insurance helps ensure that your pet is protected just as much as making sure that they cannot run onto a busy road does. As a pet owner, you will undoubtedly take steps to reduce the likelihood of any harm coming to your pet, whether by accident, illness, or mishap. However, in the case that such an incident does occur, pet insurance helps ensure that you have the financial capability to effectively address the issue.