Pet Insurance

The main types of cover

Pet insurance is sold at very different levels of cover, and the label on the policy matters:

• Lifetime — the most comprehensive; renews each year and covers ongoing (chronic) conditions for the pet’s life, up to a yearly or per-condition limit that resets on renewal
• Annual (time-limited) — covers a condition for a set period (often 12 months) or up to a set amount, after which that condition is excluded
• Maximum benefit (per condition) — pays up to a fixed amount for each condition with no time limit, but once that limit is reached the condition is no longer covered
• Accident-only — the cheapest and most basic; covers injuries from accidents but not illness

Exclusions and pre-existing conditions

Every policy has exclusions, and the most important is that pre-existing conditions — anything your pet has shown signs of before cover started — are almost always excluded. Policies also commonly exclude routine and preventative care such as vaccinations, neutering, flea treatment and dental cleaning, and apply an excess to each claim (sometimes with a percentage co-payment for older pets).

What affects the price

Premiums reflect the insurer’s assessment of risk, including your pet’s species, breed, age and where you live. Costs typically rise as a pet ages and becomes more likely to need treatment, which is one reason switching insurer later can be difficult — a new insurer will treat any existing condition as pre-existing. Taking out lifetime cover while a pet is young and healthy is often suggested for this reason.

Choosing a policy

Compare the annual and per-condition limits, the excess, whether chronic conditions are covered year after year, and any age limits — not just the monthly premium. The cheapest policy can prove expensive if it stops covering a long-term illness partway through treatment.