National Society

Pet insurance gives a pet owner peace of mind in the case of illness or a serious injury to their pet.  The bill is usually the last thing on anyone’s mind when their pet is sick or hurt but can quickly become a horrible reality when the treatments are over.

The mounting cost of treatments plus medication can mean your bill grows into the hundreds or even in some cases thousands of pounds.  For many households there just isn’t the spare money to pay for bills as high as these without fair warning, but an emergency or accident never gives notice.

Having pet insurance means that you know your pet is going to get the best treatment possible without it affecting the household budget.  Which company your policy is with and the level of cover you have taken out will specify by how much the insurance company will cover the bill.  In many instances the whole bill will be taken care of, but in some cases you may need to top up the payment with some of your own money.  In the second instance it is far better than having to pay the full amount out yourself.

Pet insurance works just as your car or home insurance does, whereby you pay a small amount each month depending on the policy you have chosen and if ever the need arises you just call the company to start the claims process.  The insurance company takes the worry from you, and your pet gets to come home feeling better and restored to good health.

It is a fact that many people consider their pets as part of the family, not simply as animals that live with them.  So, it makes sense that in the past few years, the popularity of pet insurance has been growing in countries like the United States and the United Kingdom.  The reason behind the growth in the pet insurance industry can be attributed not only to the love people feel for their pets, but perhaps also to rising veterinary fees and an unstable economy.

The First Policy in Sweden

Pet insurance has not always been an option for budget-conscious and responsible pet owners.  In fact, the first pet insurance plan was introduced in Sweden in 1924.  It was for a dog.  At that time, insurance covering pets was unheard of and such cover was very rare.  It wasn’t until two decades later, in 1947, that the first pet insurance policy was sold in Britain.

The UK Leads Pet Insurance Market

The sale of that first policy in the UK led to a rapid increase in the availability of pet insurance in the country.  In fact, the United Kingdom has the most robust pet insurance market in the world with almost 20% of the country’s pets insured.  It would be almost another 30 years before the first pet insurance policy would be sold in the United States, in 1982 and that plan only covered the famous dog, Lassie. 

The late 1990s would bring about more pet insurance underwriting for animals and the United States has quickly followed in the UK’s footsteps.  Today, both the UK and the US are leaders when it comes to pet insurance.

Standard pet insurance, perhaps for a dog or cat, will typically cover the costs incurred when the animal requires treatment for an illness or condition or following an accident.  However, there are several additions to pet insurance plans that it might be worth considering, which will extend the range of benefits beyond these basic needs.

There are several contingencies that pet insurance can provide cover for in addition to standard health care, starting with insurance against the death of the animal.  This is not necessarily included under the terms of regular pet insurance, so it is worth checking to see what is available and what the cost would be.  In addition, it may also be possible to include clauses that cover the cost of looking after the animal if the owner becomes ill and is unable to take care of it.  Such insurance may include the cost of boarding fees for the pet if the owner needs to spend time in hospital.  Other clauses cover the cost of cancelling a family holiday and recovering any kennel costs if the family pet falls ill.

Some insurance policies will go so far as to include the cost of advertising and even offering a reward in the event that a family pet goes missing and needs to be found or otherwise rescued.  Such policies may also provide cover that ensures compensation will be paid if the pet is not found within a specific period of time.

Shopping for pet insurance can be confusing, especially when you don’t know what you are looking for.  There are actually three main types of pet insurance out there to choose from.  Knowing the basics of each of these types of cover will make it easier when choosing a plan that is right for your pet.  Let’s take a look at them now.

Lifetime Cover

Lifetime pet cover is by far and away the most expensive type of pet insurance.  But it also gives you the best coverage.  With this type of cover, treatment is usually fully paid up as long as you have met your deductible.  There is also an annual limit but the plan will continue for the lifetime of your pet as long as you renew it.  It will not be cancelled once your pet reaches a certain age.

Time-Limited Cover

The time-limited pet cover option is the least expensive of all the pet insurance types.  However, it doesn’t provide very good coverage for illnesses.  Additionally, there is not only a maximum cost of treatment you may claim, there is also a time limit on paying for each condition your pet may have.  This plan is usually best for injuries or one-off operations but not for lifelong treatments.

Condition-Based Cover

The third policy type is the condition-based cover.  This is a mid-range policy that allows for each condition to be covered for life, but is subject to an overall cost limit.  For example, if your pet has diabetes, cover will continue throughout the animal’s life until you meet the cost limit.