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This article is for general guidance only and is not financial or professional advice. Any links are for your own information, and do not constitute any form of recommendation by Saga. You should not solely rely on this information to make any decisions, and consider seeking independent professional advice. All figures and information in this article are correct at the time of publishing, but laws, entitlements, tax treatments and allowances may change in the future.
Pets are an important part of everyday life for many people. They can provide companionship, help to stave off loneliness, and offer a reason to get out and about.
But owning a pet can also be expensive, with veterinary bills running into hundreds, or even thousands, of pounds.
Pet insurance can give you peace of mind if your four-legged friend becomes ill or has an accident, helping to cover some of the cost of treatment. However, cover can vary widely, so it’s important to understand what you’re buying before taking out cover.
Here’s how pet insurance works and what to look out for when weighing up a policy.
UK Pet Food estimates that 62% of households own one of the UK’s 36.5 million pets. This includes about 15.5 million dogs and 13 million cats.
Pet insurance is designed to help cover the cost of vet treatment if your pet is injured or becomes ill. You pay a monthly or annual premium for the policy, and, like most insurance types, you usually pay an ‘excess’ if you make a claim.
There are two types of excess. A compulsory excess is set by the insurer and can’t be changed. A voluntary excess is an additional amount you choose to pay, which can reduce your premiums.
If your pet needs treatment, you typically pay the vet’s bill and then claim the eligible costs back from your insurer, minus your excess. However, some insurers may settle the bill directly with your vet, so check how your policy works.
Pet insurance can provide a financial safety net if your pet becomes ill or injured, but it can be particularly useful for owners with older pets.
Nathan Blackler, pet insurance expert at Go.Compare, says: “Senior animals are more likely to need ongoing care for age-related conditions such as arthritis, diabetes, dental disease or heart problems.
Vet fees can vary depending on where you live, the veterinary practice you use, and the type of pet you have. A routine consultation might cost around £40 to £65, according to Blackler, while an emergency out-of-hours appointment could be £100 to £250 or more before any treatment begins.
The cost can rise significantly if your pet needs further treatment. The amount you pay will depend on the condition being treated and the type and size of your pet, with larger dogs often being more expensive to treat than smaller ones.
According to Animal Friends, the average vet fee for treating an ongoing condition such as diabetes is around £1,273 for cats and £1,639 for dogs.
Treating osteoarthritis costs around £830 for cats and in the region of £997 for a medium-sized dog weighing between 10kg and 20kg.
There are several different levels of pet insurance, depending on the type of cover you need and your budget.
The most basic type of pet insurance is accident-only cover. As its name suggests, this type of policy only covers injuries caused by accidents, not illness. For example, it could cover your dog if it was hit by a car, but it wouldn’t pay out if your dog picked up a respiratory infection.
Time-limited pet insurance covers an illness or injury up to a certain limit. These policies have both a time limit, usually up to 12 months, and a fixed cost limit (the maximum amount you can claim for each illness or injury). You can only claim for treatment until you reach one of these limits – either the time or cost limit, whichever comes first.
Then there’s maximum benefit cover. This covers each new illness or injury up to a set financial limit. You can claim as many times as needed, but once you’ve reached the limit, you will have to pay for any further treatment for that specific illness or injury.
Lifetime cover is the most comprehensive option. It’s also typically the most expensive. It covers both new and ongoing conditions year after year, provided you renew the policy without a break. Policy limits usually reset each year, although exact terms vary between providers.
Exactly what pet insurance covers depends on the insurer and the level of protection offered. However, policies typically cover medical expenses such as vet fees, diagnostic tests, surgery and treatments. Some also include dental cover.
Certain policies might include third-party liability insurance for dogs, while other policies may require you to pay extra to include it.
Nicola Bryden, a veterinarian at VetMedi.co.uk, says: “Third-party liability is essential for pet owners as it covers the legal costs and damages if a pet accidentally hurts someone or damages property.”
Many policies also cover vet-recommended complementary therapies, such as hydrotherapy or acupuncture, which can be beneficial for arthritic senior pets.
Treatment for behavioural problems might be covered, too.
If your pet goes missing, some policies will pay towards advertising costs as well as the cost of a reward. Certain policies also cover boarding expenses at a kennel or cattery if you are unexpectedly admitted to hospital, while others can include emergency treatment costs abroad if you take your pet overseas.
Pet insurance policies can contribute an amount towards euthanasia, or burial or cremation if your pet dies, but this is often an add-on that you pay more for.
There are several common exclusions to look out for. Pre-existing conditions – in other words, illnesses or injuries diagnosed before the policy begins – won’t usually be covered, for instance.
Costs related to neutering, pregnancy and giving birth, as well as preventative healthcare such as vaccinations, flea and worm treatments also won’t be covered as standard.
Dental cover can be restrictive, too.
Bryden explains: “Many policies only cover dental treatment resulting directly from an accident, rather than tooth decay or long-term dental disease. While routine check-ups and cleanings are excluded, keeping your pet’s dental health up to date is often a strict requirement to keep your policy valid.
Some vets have their own plans available for routine care, so it’s worth checking.
Britt Rosendahl, from Woodgreen Pets Charity, explains: “For a small monthly fee, your pet can receive full parasite protection and annual vaccinations, bi-annual veterinary examinations, complimentary nurse consultations (with basic services like claw clipping) and discounts on dental care.
You should also check your pet insurance policy for annual claim limits and pet age limits. Many policies include a waiting period when the policy first starts, which means you won’t be able to claim for certain conditions during this time. The length of the waiting period varies between policies, but it’s typically around 14 days for illnesses.
Older pets can still be insured, but as there isn’t a single maximum age across the market, you’ll need to check each insurer’s policy for their own age limits. Insurers may offer different levels of cover once a pet reaches a certain age.
Nathan Blackler says: “Owners may find there are fewer options available, and premiums are likely to be higher than they would be for a younger pet.
“Some policies also introduce a co-payment once a pet reaches a certain age, meaning the owner pays a percentage of eligible claims as well as the fixed excess.
Co-payments are typically between 10% and 20% of the eligible claim, so keep this in mind when comparing policies.
A price comparison site can be a useful way to compare a range of policies side by side. This makes it easier to check upper age limits, the level of cover, the excess, and the cost, so you can be sure you’re getting the right type of policy at the best price.
You could also ask for recommendations from friends and family and buy directly from an insurer. Alternatively, your vet might be partnered with an insurer and could help you take out a policy. But it’s worth comparing this with other options before buying.
When taking out a pet insurance policy, it’s important to be honest and provide as much information as possible about your pet’s medical history. If you fail to tell your provider about something and later make a claim, it could be rejected by your insurer.
Britt Rosendahl says: “Check the excess and maximum cover levels to make sure they are suitable and look out for any conditions on the insurance.
For example, some policies require your pet to be up to date on their vaccinations for the policy to be valid, meaning a missed booster jab might cause a claim to be rejected.”
Keep in mind that the cost of pet insurance can vary a lot depending on the type of pet you have, and you could pay more if you have a breed that is pre-disposed to genetic health problems.;
Rosendahl says: “This includes flat-faced breeds like pugs and bulldogs who often need their airways expanding, and larger breeds like German shepherds and labradors who are frequently affected by hip and elbow dysplasia. It’s a good idea to research common health concerns for the breed of dog or cat you have, so you can consider what cover they are likely to need.”
Finally, if you already have cover in place for an older pet, think twice before switching to a new provider.
Nathan Blackler says: “A condition that is covered under an existing policy could be treated as pre-existing by a new insurer, potentially leaving you responsible for future treatment costs relating to it.
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