In this guide we will outline everything you need to know to insure your pet.
• How pet insurance works, including the different types of cover
• How much it costs
• Free vet care for those on a low income?
• Should I take out pet insurance, or just take the risk? How do the prices compare?
• The tricks insurers use to trap their customers
• 3 ways to reduce insurance costs
• The best insurance deals on offer
• What about other pets, like rabbits, horses or exotic animals?
We are a nation of pet lovers, but millions of us are begrudgingly shelling out as much as £50 a month for some types of pet insurance policies, thanks to a rise in veterinary bills which have had a knock-on effect for insurers.
In 2013, Sainsbury's Bank – one of the providers of pet cover – said vets' fees were escalating at 12pc per year, more than six times the rate of inflation.
Vets claim this inflation-busting rise is the result of the development of new drugs and medical technologies – which have helped many pets recover and live with conditions that would have proved fatal in the past.
But there have been concerns over some veterinary practices recommending additional check-ups or treatments to extract more money from the insurer.
With vets' fees rising sharply, the average single pet insurance claim now costs more than £600, with pet insurers paying out £1.3m in claims every day, according to figures published by the Association of British Insurers.
But is it always worth taking out cover? Or should you join the millions of pet owners who take the risk and don't get any cover at all?
Below, our step-by-step guide will answer all your questions.
How does pet insurance work?
Pet owners can choose from four main types of cover: "accident only", ''per condition with a time limit''; ''per condition''; and ''lifetime'' cover.
"Accident only": very basic cover
This insurance covers a pet if they need veterinary treatment after an accident, but not if they have an illness. Some policies may also have a time limit for the treatment and there is a fixed sum of money for each accidental injury to pay for the treatment.
"Per condition with a time limit": basic cover
The cover is one of the cheapest. It will pay vets' fees for accidents and illnesses, but only for a maximum of 12 months after your pet has been diagnosed.
Insurers of this type of cover will often impose a maximum payout, so, if the cost of a treatment reaches the limit, you will have to foot the remainder of the bill.
An insurer may provide a policy, for example, with a maximum veterinary fee of £2,000 and a time limit of 12 months. So, if the bill is more than £2,000 or you go after 12 months, you will have to pay the extra.
"Per condition, no time limit": mid-level cover
With ''per condition'' cover, insurers provide cover for a set fee limit, but do not impose a time limit for how long the treatment lasts. The cover will continue for any treatment as long as you renew the policy after 12 months. Re-occurring illness or injury will not be covered by this type of policy.
"Lifetime": high-level cover
''Lifetime cover'' is the most comprehensive type of pet insurance, but also the most expensive. Insurers will set a high maximum amount per year – say, £10,000 – but you will still have to renew the policy each year, and some insurers can refuse to renew it.
The policy will sometimes cover extras like dental fees or burial expenses.
For all types of cover, pet owners must pay the "excess", or first part of any claim themselves. You can choose to lower your premium rate by increasing your excess, or vice versa. Usually, there will be an initial flat-rate excess charge of around £50.
Peter Jones, president of the British Veterinary Association, said that all pet insurance policies had some exclusions. "The most common being pre-existing conditions, anything related to pregnancy or birth, and any routine, preventive or planned treatments such as vaccinations and spaying."
Almost all insurers will refuse to cover an animal with a pre-existing medical condition. If they do, the premiums are likely to be huge.
How much does it cost?
The price of pet insurance varies depending on where you live and your pet's breed and age.
For example, Rottweilers are one of the most expensive dogs to insure based on their breed's history of medical complaints.
If your pet has been neutered and microchipped, the premiums will often be reduced.
>> Seven tips for buying pet insurance
We asked Comparethemarket.com to crunch some numbers for us to work out the cost of an insurance policy for a four-year old Labrador, who has been spayed, with the owners living in Manchester, and a two-year old cat, who has been neutered, with owners living in Devon. Neither animals have a history of a previous illness.
These are currently the cheapest insurers for both the cat and dog, across the four cover types.
Cheapest policy for the labrador
Accident Only – Paws & Claws £49.92
Per condition with a time limit – Animal Friends £71.16
Per condition, no time limit – Helpucover £177.96
Lifetime – M&S Bank £188.64
Cheapest policy for the cat
Accident Only – Animal Friends £35.76
Per condition with a time limit – Animal Friends £37.56
Per condition, no time limit – Healthy Pets £47.88
Lifetime – Homebase £48.12
Should I take out pet insurance, or just take the risk? How do the prices compare?
It really is up to you. There is no NHS for pets, so even basic treatment can cost hundreds of pounds. For instance, the average cost of treating a dog injured in a road traffic accident is £674, and £300 for a cat.
More serious conditions such as hip dysplasia can cost more than £4,000. And bills can run up to more than £10,000 if the animal has cancer.
On the other hand, your pet could be lucky and only have to go to the vet a few times in its lifetime. As a result, the total spent on veterinary bills would be quite low.
If you chose to take out monthly insurance for your pet, for an animal's entire lifespan, say 12 years, at an average policy price of £50 a month, then you would end up paying more than £7,000 over the 12 years.
"Pet insurance is as much about peace of mind as it is about money. You may pay insurance premiums for years and never make a claim. But think about whether you could afford a huge vet's bill if your pet fell ill or had an accident in the short term," warned consumer body Which?.
I’m on a low income and can’t afford insurance. Can I get free vet treatment for my pet?
If you are on a low income you can take your pet to the animals charities People's Dispensary for Sick Animals (PDSA) and the Royal Society for the Prevention of Cruelty to Animals (RSPCA), which offer treatment on a means-tested basis.
The RSPCA says a low income is defined as a weekly household income of £200 or less.
The Blue Cross can also help. It states on its website: "Our veterinary services are available to pets whose owners are on certain means-tested benefits or low incomes. You’ll be requested to bring proof of your benefit along with photo ID or a utility bill, as well as a wage slip or bank statement for those on low incomes."
Pet owners in Scotland or Ireland can seek advice from the Scottish Society for the Prevention of Cruelty to Animals (SSPCA) and the Ulster Society for the Prevention of Cruelty to Animals (USPCA).
The tricks insurers use to trap their customers
Premiums for older pets rise rapidly year on year, leaving pet owners in an uneasy position. They could pay extortionate prices to have their pet covered; take Greg Rowan, who had to pay out £285 a month to insure his British bulldog Busby with M&S Bank, because of the dog's age and history of claims due to dermatitis and eye treatment. Or pet owners could leave their pet uninsured, and pay the vets' bills themselves.
>> More: 'My pet cover now costs £285 a month'
Greg Rowan and Busby
Trying to switch to a cheaper insurer is not an option either, as most will not cover pre-existing conditions, or older pets.
>> More: How to avoid the catches on pet insurance
Three ways to reduce insurance costs
• Get your animal neutered/spayed as this will help to lower insurance costs
• Insure your pet when it is young and healthy, as pet owners will have to disclose any existing medical issues their pet may have, and this will hike up your premium
• Get your pet microchipped – some insurers will charge a little less if the animal has been chipped
How to get the cheapest deals
Because animal cover depends on several factors, it's impossible to say what the overall best deals are. However, pet owners should compare prices by using comparison sites like Gocompare and Comparethemarket to find the best deals on offer. Remember Aviva and Direct Line are not included in third party sites, so you might want to check them out separately.
Using a comparison site is not always cheaper than going directly to the insurer, but it is always worth checking.
What about insuring other pets, like rabbits, guinea pigs, horses or exotic animals?
It is possible to insure all of these animals, but cover is a little harder to find. For rabbits, horses, small birds, guinea pigs and so on, Petplan is one of the biggest insurers to provide cover. If you buy the cover online you will receive a 10pc discount.
ExoticDirect offers cover for parrots, tortoises, lizards, snakes and other smaller animals.
There are a few more choices when it comes to horses. Some insurers to consider include; The British Horse Society, Petplan Equine and Animal Friends.
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