By: Catriona Singfield

Vets’ fees are set to rise, and over the next three years will increase by up to 20%. Given the expense as well as the stress and worry of an unwell pet, are pet owners underestimating the need for adequate pet cover?

When you keep an adult dog as a pet, you can expect to pay around 40% of your pet care budget on unexpected visits to the vet. Yet only about 12% of Britain’s 13 million dog owners take out specialised insurance.

Financial research company Defaqto know that choosing the right pet insurance can seem daunting. According to their research, pet owners are often confused as to what cover offers, and which policy is the right one for their needs. They may even be put off buying pet insurance altogether. Because some policies pay out on claims on a yearly basis, and others pay per condition, it can be hard to compare them for the best deal. In addition, some cover has built-in limits that place cut-off points on payouts when a claim is made.

High premiums can also put owners off. By way of example, a cat has a typical lifespan of 14 to 15 years, and can run up a total cost in medical care of up to £9,500 during that time. The family dog doesn’t do much better at an average yearly cost of £500 to £1,000 over a typical canine lifespan of 13 years. And a caring cat owner can pay up to £200 a year for insurance in London.

Pet insurance can help enormously towards costs if a pet should become ill, but what a policy covers can be very limited and it pays to check the details.

Good pet cover should include veterinary fees, long term treatment, money for rewards if a pet is lost or stolen, and dental care, as well as benefits if a pet should die of illness or as a result of an accident.

Many policies fall short of this, however. Some will not cover repeat claims for the same condition; some will allow this, but cap the amount you can claim per year. Yet others have a limit of £5,000 on any one claim.

As with all insurance cover, there are many variations. In the same way that car or contents insurance policies have an excess charge – the amount it will cost you before a claim pays out – pet insurance will also impose this fee. Defaqto warn that the cheapest cover can carry an excess of up to 35%, underlining the fact that the lowest premium may not represent the best value for money.

So what should you look for in a policy? Choose one that will last the whole lifetime of your pet. Make sure that it does not exclude any conditions already experienced – some will not pay out on any conditions dating from a year before the cover was taken. Others exclude older pets, or refuse to cover pets younger than six to eight weeks old.

However, there are benefits to having pet insurance that are often overlooked. For example, if a car driver should swerve into a wall while avoiding your dog, a good policy will cover you for damage to the car – and even the wall if necessary! You may not know it, but you are legally liable under the Dangerous Dogs Act for damage to people or property caused by your dog. If Fido goes for the postman, you may well be taken to court, but at least you can arrange cover for your legal fees.

If your pet is well but you have to go into hospital, some insurance will include a kennel stay. This might be especially useful for an elderly person, or someone living alone. Some plans also include cancellation fees if your holiday plans are upset by a sick or injured pet.

It is usual for a policy to cover costs for advertising if an animal goes missing, including a reward. Some will pay for a replacement pet should your own be stolen or even die. But because insurance is designed to cover unexpected problems, it won’t include vaccinations, booster shots, worming treatments, nail clipping, spaying or neutering.

It is common for dogs to cost more to insure than cats, with extra charges for pedigree breeds or big animals. There may even be an extra charge for the smaller, more delicate varieties of dog. Premiums may also be affected by the vets’ bills in the district where you live, being higher in cities, especially London.

As always, there are a wide range of insurance policies for pets just as there are for people. The best course of action is to decide what level of cover suits you best and shop around. Watch out for that excess though – it can be between £25 and £65. Be aware too that many companies set a maximum payment, either per year, or per illness or accident.

Look at your needs carefully, and make sure that what you require for your pet is actually covered by your policy. You may find a better combination online, so do your research and don’t neglect this resource – a good policy can save both your wallet and your peace of mind.

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