Is Pet Insurance really necessary?

Pet insurance is a personal choice. There are many pet insurance companies on the market all offering various levels of cover. Some start from as little as £8.00 a month.

When looking into insurance, try to select a policy that offers "life time" cover as some will only cover for any one condition for a year. Should your pet develop an illness such as diabetes or arthritis, it will require lifelong treatment and medication can be very expensive.

Below is a guide to help you decide which pet insurance is best for you and your pet.

Pet insurance: vet fees

The most important feature of a pet insurance policy is the vet fee cover, and how it pays out. Vet fee cover typically ranges from as low as £500 to as much as £12,000. 

Pet insurance policies fall into two main categories; lifetime cover policies and non-lifetime cover policies as seen below:

Pet insurance: lifetime cover

This types of policy offers the most comprehensive levels of cover, paying out for ongoing illnesses for the lifetime of the pet, but they tend to become quite expensive as the level of vet fee cover increases each year.

• Per condition per year lifetime cover provides a maximum cover limit per condition, which resets per year. You can claim for more than one condition per year. 
• Annual liftetime cover provides a maximum overall cover limit that resets each year. 

Both annual and per condition per year policies will cover ongoing illnesses year on year, so long as you keep paying the premiums. 

'Per condition per year' policies may offer superior cover at a similar price to annual policies so run quotes from a variety of different providers. 

• Note: If you decide to opt for a 'per condition per year' pet insurance policy, double check with the provider that cover for each condition renews each year. If not, then it is a 'per condition' policy which is a non-lifetime cover policy (see below).

Pet insurance: non-lifetime cover    

These policies limit how much they pay per condition before it's excluded.

• Per condition non-lifetime cover: This cover pays a limited amount per condition with no time limit, but once the amount has been used up the condition is then excluded from any future payouts. If lifetime policies are too expensive, these are the next best option.
• Time-limit per condition non-lifetime cover: This will have both a per condition limit and time limit of typically a 12 months before the condition is excluded. These policies tend to be the cheapest, but offer the lowest level of cover. 

Cheap pet insurance: accident only and time limit policies

Accident-only pet insurance policies

These policies cover your pet for only accidents and exclude cover for illnesses from the policy entirely. Although these policies maybe cheap in comparison to standard pet insurance policies they may turn out to be a false economy. A recent survey of Which? members about their claims history over a two year period showed that 70% of claims were for illnesses. 

If you are on a budget and considering an accident only policy, its worth comparing some quotes from cheaper standard policies in our cat and dog insurance reviews on the off chance you get a good deal for your pet that covers illness.

Time-limit per condition pet insurance policies

Having some form of pet insurance in place even if it offers a low level of cover, such as a non-lifetime; time-limit per condition policy, may still take some of the impact out of an unexpected and expensive vet bill. 

Before choosing one of these policies, make sure you've run quotes with alternative types of cat and dog insurance policies with no time-limit to make sure you aren't missing out on a better deal. As our reviews show, cost does not always correspond to the cover level. Additionally, other risk factors such as where you live in the UK, in a urban area or country can make a difference to what you are quoted.

• Tip - if you opt for a per condition policy with a 12-month limit, putting some money into a best rate savings account may act as a buffer for any illnesses that persist or become chronic illnesses.

Pre-existing conditions not covered with new pet insurance policies

Its important to note that no pet insurance policy on the market will cover pre-existing conditions. This means if you have made a claim for your cat or dog on a policy, and decide to switch provider further down the line the new provider will exclude that condition from the policy