Defaqto exclusive guide

pet insurance 

About this guide

Last updated 8/28/2008

Guide to pet insurance

“The British are a nation of cat and dog lovers and treat them as a part of the family. However, not all pet owners have adequate insurance cover for their loved ones”

Our research into the Pet Insurance market in December 2007 found that there are an estimated 10 million cats and 7 million dogs in the UK. However, only 17 per cent of cats, and 32 per cent of dogs are insured.

As a nation of animal lovers, we pamper and care for our pets. If our pets are ill, or involved in an accident, we want them to have the best care and treatment. Veterinary fees can be very costly and some illnesses can remain with the pet for life.

Pet insurance can avoid the financial strain that is put on you to cover the cost of the treatment of your pet. We all want our pets to live long and happy lives with us. Pet Insurance is especially beneficial as your dog and cat get older and can develop conditions and illnesses as arthritis, diabetes, loss of sight and dental problems to name but a few.

Other benefits provided by dog policies include liability insurance. If your dog runs in front of a car, causing the car to swerve and crash, you could be liable for the cost of the damage to the car involved and any injury to the driver. This is where liability insurance covers the financial implications in the event that your dog causes an accident or injures someone.

Other treatments covered by some pet insurance polices include homeopathy, hydrotherapy, osteopathy physiotherapy and alternative treatments, such as herbal medicines.

Remember “Buying Pet Insurance on price alone can be the most expensive purchase you make”. Always check the cover that is relevant to you.  We have given some examples of typical covers under a Pet Insurance policy. By using our Compare tool, you can check what each cat and dog policy covers. Always check with your insurer to confirm the exact covers provided by the policy.

What's covered

One in three cats and dogs fall ill or are injured each year – representing more than 4.5 million household pets. With no NHS for animals and the average emergency visit to a vet costing around £300, it makes sense for pet owners to purchase insurance.

 Some of the most common reasons for pets needing a vet are:

  • cuts/lacerations
  •  lameness
  •  road traffic accident
  •  tumours
  •  abscesses
  •  Bites
  •  foreign bodies (swallowed)
  •  pyrexia/anorexia of unknown origin
  •  gastro-enteritis
  •  ear infection

Typically, there are three types of pet insurance policy. The cheapest is usually limited to a set period of time, such as one year. However, with this type of limited cover, you run the risk that if your pet is in the middle of treatment when the insurance expires, the condition will no longer be covered.

At the next level, there are policies that will cover any condition up to a certain amount. This means you can claim against the cost of treating a specific condition, until you reach the cover limit, making this type of cover unsuitable for pets suffering from long-term conditions.

Finally, there are ‘cover for life’ policies. With these polices, you agree in advance the cost of insuring your pet throughout its life. Each year you pay an agreed premium which provides a fixed amount of cover for vet fees each year.

A cat with arthritis, for example, would be covered for arthritis during its lifetime. Your insurance policy will pay the costs of treatment for this condition only, less any annual excess agreed at the outset.

Although this type of cover can be expensive, it is suitable for long term, ongoing conditions, and provides pet owners with maximum peace of mind.

Insurance policy type

Advantages

Disadvantages

12 months only

Emergency treatment, covering basic vet bills.

Treatment may not be finished when cover expires.

Condition limited

Pays for the treatment of a certain condition for the lifetime of the pet.

Higher cost, and claim limit may not be high enough

Cover for life

Pays on all conditions, subject to a limit, for pet's lifetime. Premiums fixed in advance.

Excess applies per treatment, per year So if your pet requires treatment for the same condition spanning more than one policy year, you may have to pay multiple excesses for the same treatment.
These policies often limit cover to one condition per year.

How are premiums costed?

Very young puppies and kittens are not normally eligible for insurance. In fact, most insurers only provide cover for animals of more than eight weeks old. During the first eight weeks of an animal’s life, a pet will usually be with its mother at the breeders, and medical problems are often discovered at this stage.

At the other end of the spectrum, most insurers either will not accept pets which are more than 7 or 8 years old, or if they will accept the pet, only at a higher premium and excess (the initial portion of each and every claim which you must pay). So much for age.

The pet’s breed and gender can also have a bearing on cost. It is well known that some breeds have a tendency to develop particular conditions, so you may find that some insurers exclude treatment of specific conditions for certain breeds, or alternatively charge a large excess.

Where you live can affect premiums too, for the simple reason that vets are more expensive in some areas than in others. So the cost of pet insurance can be something of a post code lottery.

Even more interestingly, pet insurance premiums can even be influenced by the gender, age, and marital status of the pet’s owner.

Defaqto research shows that divorced men are much less likely to make a claim than, say, married women.

If your pet has been neutered, this can lower the cost of insurance, while having a pet micro-chipped often attracts a big discount. This is because a micro-chipped pet is more likely to be returned if it gets lost and insurers regard this as a sign of a caring owner.

Decide what you want covered

In addition to the essentials described above, some policies provide useful extras, such as cover in the event that your pet goes missing or dies prematurely. In these instances, cover might meet the cost of advertising your lost pet, or even reward money.

In the event that your pet dies prematurely, some policies cover the cost of buying a new pet. Finally, there are ‘nice to have’ extras such as vet fees while you are abroad, or kennel and cattery fees if you are hospitalized and are unable to care for your pet.

The chart below sums up the options that are available:

Policy features

Covers the cost of

Comments

Core benefits

 

 

Vets fees

Emergency treatment, chronic conditions, dental fees.

Payable in three different ways; limits vary markedly by insurer

Other professional fees (recommended by vet)

Behavioural treatment, complementary treatment such as hydrotherapy, physiotherapy and alternative treatments, such as homeopathy.

Not all policies offer this usually requires vet to recommend the treatment

Liability (dogs only)

Physical injury to third party and accidental damage to property.

 

Additional benefits

 

 

Loss of pet

Early death of pet due to accident or illness, cost of buying new pet, advertising and reward for return of pet

Cover for refund is only valuable if pet was paid for

'Nice to have’ features

 

 

Foreign travel

Vet fees while abroad

This is increasingly available

Kennel/cattery Fees

Covers the cost of looking after the pet if owner is hospitalised

Some insurers will pay cost of daily minder for the pet

Transportation costs

Covers additional travel costs if pet is referred to another treatment centre

Few policies offer this

Helpline services

Vet advice service, vet finder service, bereavement counseling

Often provided by qualified veterinary nurses. Often sold as a benefit, but in practice is often required to establish legitimacy of a claim.

Waiver of premium

Pays policy premiums while the owner is unable to work

Offered by only a few insurers

What to watch out for

Exclusions

Different insurance companies apply different exclusions. Some may refuse to cover older animals or certain breeds if they feel they are too high a risk.

Other companies may refuse to cover your pet for certain conditions, such as arthritis or hip conditions that certain breeds of dog are especially prone to. Make sure you check the exclusions to ensure the cover provided meets your pet’s needs.

Exclusions may typically include the following:

  • Preventative/elective treatments, such as neutering/de-worming/flea treatment/vaccinations/nail clipping/grooming;
  •  Treatment arising as a result of pregnancy and parturition (giving birth);
  •  Behavioural problems;
  •  Illness arising within the first 10,14 or 30 days of the policy’s commencement date
  •  Home visits  (except for equine insurance ) - unless the vet feels this is absolutely necessary for the pet's health/welfare
  • Congenital or hereditary conditions
  •  Dogs restricted under the Dangerous Dogs Act 1991
  •  Wolf hybrids or animals listed under the Dangerous Wild Animals Act 1976
  • Pets used for work, racing, guarding or commercial gain
  •  Dental treatment, diet food

Pre-existing conditions

Most insurers won’t cover your pet for an existing or recurring condition, which it suffered from before you took out the policy. How strictly this rule is applied will vary between companies.

For example, a dog that has suffered from arthritis in one joint prior to the insurance starting may be excluded from all arthritis cover by one company, just the specific joint by another, or for any bone and joint problems by yet another.

What happens when my pet ages?

Check what happens to the cover as your pet gets ages. Some companies may hike the premiums as your pet gets older or increase the excess. Other companies may move from charging a flat rate excess, to charging a ‘percentage of claim’ excess instead.