• Pet insurance
• Additional options
• Policy info
• Understanding pet insurance
• Your dog
• Your cat
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This guide explains why you should have pet insurance, the benefits of taking out a policy, and how to choose the most suitable policy for you. It tells you what to look for, and the questions you should ask about the level and duration of cover you receive. Finally, the guide provides a handy checklist of points to consider when you take out pet insurance, and tells you where to go for further information.

Please select one of the links below for the relevant information:

• How does pet insurance work?
• What does pet insurance cover?
• Why do pets need insurance?
• How do I choose a policy?
• Exclusions
• How can I buy pet insurance?
• How do I claim?
• Important considerations

How does pet insurance work?

Insurance works on the generally simple idea that the risks of many can cover the mishaps of a few. So, instead of everyone paying out of their own pocket every time something goes wrong, everyone clubs together, spreads the risk and pays a fraction of what they would otherwise have to.

The principles of pet insurance are the same. You pay your premium and hope that your pet stays healthy for the rest of its life. However, if your pet should unexpectedly fall ill, have an accident or even swallow something it shouldn't, your insurance company will pay to put it right out of the collective money pot.

Although pet insurance provides cover against life's unexpected emergencies, it won't cover you for routine or preventative treatment such as worming tablets or regular injections. This is no different from any other form of insurance though. For example, you can't claim for your car's regular service on your motor insurance, although you can claim for repairs if you have an accident.

What does pet insurance cover?

Vet fees

The most important aspect of a pet insurance policy, and the main reason why people insure their animals, is to cover vet fees. There are three main levels of cover offered - although there are different variations available - and it's important to know which type of cover you're buying.

• Level one - This type of cover has a maximum limit on the amount it will pay out for each condition, and a limit on the length of time a condition can be claimed for (usually 12 months from the onset). Once the maximum monetary or time limit has been reached the condition will no longer be covered. This is commonly referred to as a 12-month policy.
• Level two - The second type of cover involves a maximum limit on the amount paid out for each condition. There's no time limit though, so you claim for as long as it takes to reach this monetary limit. This is generally more expensive than level one and is suitable for long-term conditions.
• Level three - This is commonly referred to as a 'cover for life' policy. It offers a fixed amount of cover for vet fees each year, and when you renew your policy the amount you can claim is reset. For example, a cat that was diagnosed with arthritis, that first started during a period of insurance, would be covered for this condition during its lifetime, and the owner would pay an excess each year. This type of cover can be expensive but is suitable for long term, ongoing conditions.

Third party liability

Most companies will offer an element of third party liability cover, although this usually only applies to dogs. It covers any damage they may cause to someone else or their property, which you are legally liable for. For example, if your dog was to get hit by a car, you'd have to cover the cost of your pet's injuries, but you may also be liable to cover the cost of damage to the car - which could run into thousands of pounds.

Holiday cover

You can also get cover if you and your pet are travelling abroad under the Pet Travel Scheme. This may include the cost of vets' fees abroad, quarantine kennelling in the event of the pet's microchip failing, financial help if you lose your Pet Health Certificate while you're away, and third party liability cover abroad.

Additional features

Other items may be covered by a pet insurance policy. These typically include:

• The purchase price if your pet goes missing, is stolen, or is fatally hurt in an accident
• Money towards advertising and a reward if your pet goes missing
• Cover for boarding fees if you have to go into hospital for a specified length of time
• Cover if you have to cancel or cut short your holiday because your pet goes missing or needs emergency treatment

So there's a lot more to pet insurance than meets the eye! If you want to find out more, read on...

Why do pets need insurance?

Each year 1 in 3 cats and dogs fall ill or are injured, and with no animal NHS the average emergency visit to the vet will set you back around £300. Treatment is becoming more effective as technology improves, but this has caused vet bills to rise steadily. So if your pet was to have an accident or need emergency medical treatment it could end up costing you hundreds, if not thousands, of pounds. Take a look below at some of the most common reasons for going to see a vet:

• Cuts/lacerations
• Lameness
• Road traffic accident
• A growth
• Abscess
• Bites
• Foreign body (swallowed)
• Gastro-enteritis
• Ear infection

Pet insurance would cover all of these common conditions - and it doesn't have to be expensive either. It can start from just a few pounds a month, enabling you to avoid most of these unexpected costs, whenever they arise.

How do I choose a policy?

There are a number of things you need to consider when taking out pet insurance. Not only can the policies vary in the level of cover they offer, but each company will apply their own additions, conditions and exclusions, which means there can be great differences between them. It's important to make sure that you compare like with like when choosing pet insurance and pick the policy that best meets your needs and budget.

Cost

The basic level of pet insurance costs much less than you may think, and, although some policies may not cover you against every eventuality, it's usually better to have some cover than none at all. The more comprehensive the level of cover, the more expensive the policy is going to be. However you should take care to ensure you are not paying for more cover than you need.

Different companies often use different methods to work out the cost of your premiums. Some companies consider the breed of the animal, its age and where you live. The benefit of this is that you are charged according to your own circumstances.

Other companies make you pay the same as everyone else - even if their animals pose a higher risk than yours. This means that if there is a rise in claims, the company may put the price up for everyone, rather than just for those who are making the claims.

You should be able to tell roughly how each company charges by the questions they ask you. If they want to know more detail about your pet, you know that you are probably being considered on an individual basis.

Most policy contracts are on an annual basis and the cost of the insurance can usually either be spread over the year by paying monthly or as a one-off annual charge. Sometimes you can save by paying by a particular method, such as by direct debit.

Excess

The excess is the part of a claim that you have to pay from your own pocket.

One of the main purposes of an excess is to prevent people claiming for minor ailments that only cost a small amount to treat, but cost insurance companies a lot to process. Without an excess everyone could claim for everything and, ultimately, the cost of insurance would have to rise dramatically. By charging an excess insurance companies can keep premiums lower, making cover more affordable.

Different companies offer different types of excess:

• Fixed excess - This type of excess is fixed at the outset, say at £50, and stays the same regardless of the size of your claim.
• Percentage excess - This is where the excess is based on a percentage of your claim (usually after a fixed minimum has been applied), so the more you claim the higher the excess.
• Annual excess - If a single condition spans two policy years the excess will be taken twice.
• Variable excess - The excess can vary according to the area in which the pet lives and/or the pet's age.

Most companies will charge you an excess for each condition you claim for, so if you have to claim for two different problems in one year, you'll have to pay two excesses.

Exclusions

Different insurance companies apply different exclusions. Some may refuse to cover older animals or certain breeds if they feel they are too high a risk. Other companies may refuse to cover your pet for certain conditions, such as arthritis or hip trouble, which certain breeds of dog are especially prone to. Make sure you check the exclusions to ensure the cover provided meets your individual needs. Possible exclusions may be:

• Treatments that are aimed at preventing a condition e.g. neutering / worming / flea treatment / vaccinations / nail clipping
• Treatment arising as a result of pregnancy or giving birth
• Behavioural problems
• Illness arising within the first 10, 14 or 30 days of the policy date
• Home visits, unless the vet feels this is absolutely necessary for the pet's welfare
• Congenital or hereditary conditions
• Dogs restricted under the Dangerous Dogs Act 1991/ Wolf hybrids or animals listed under the Dangerous Wild Animals Act 1976
• Pets used for work, racing, guarding or commercial gain
• Dental treatment
• Diet food

Pre-existing conditions

Most insurance companies won't insure your pet for a condition that started before you took the policy out. How strictly this general rule is applied will vary between companies. For example a dog that has suffered from arthritis in one joint prior to the insurance starting may be excluded from all arthritis cover by one company, just the specific joint by another, or for any bone and joint problems by another.

Changes in terms for older pets

Check what happens to your policy as your pet gets older. Some companies may increase the premiums or excess as your pet gets older. And sometimes they change from charging a flat rate excess to a percentage excess instead.

Age limits

Many companies won't insure your pet for the first time if it's past a certain age. This is usually 8 or 10, but it can be as low as 5 years old depending on the breed. Whilst generally speaking, most companies who will insure your pet will insure them for life, there are some companies who won't. So, even if your moggy or pooch is already insured, once it hits the company's cut-off age, insurance may cease or cover may be restricted.

Additional benefits

Some companies offer important additional benefits at no extra cost. For example, a phone line to help you find a vet in an emergency.

Company reputation

You may be better off choosing a company that has a proven and good reputation that you can trust to deliver a reasonable level of service. Speak to friends and family about which companies they recommend. Remember also that the company name on the policy is not necessarily the company that underwrites the risk or administers the sales and claims process.

How can I buy pet insurance?

Common ways to buy policies are by post, over the phone, online or in supermarkets.

How do I claim?

Although companies will differ in their requirements, it's generally very simple to make a claim. Some companies will allow you to make a small claim for vet fees over the phone, without having to complete any paperwork. However, for larger and more complicated claims you'll probably be asked to complete a claims form. You'll then need to pass this onto your vet, so that the surgery can add necessary medical details, such treatment received and costs incurred.

If the claim involves a third party you must notify your insurance company in the first instance, so that they can liaise directly with the third party.

Important considerations

As you can see, there are a number of things to consider when taking out a pet insurance policy. Below, we've included a checklist of the key points.

Things to consider

• Does the cost of the policy suit my budget?
• Is the level of vet fees cover appropriate for me?
• What are the exclusions and how will they affect me?
• What are the excesses and how are they applied?
• Does my pet have any pre-existing conditions that affect the cover?
• Will the terms and conditions stay the same when I renew the policy?
• Will the company insure my pet as it gets older?
• What happens to the policy's terms and conditions as my pet gets older?
• Do I want to pay my premium on a monthly or annual basis?
• Should I have third party liability cover?
• What additional benefits are important to me?
• What do I know about the company's reputation?

Taking out pet insurance is a wise decision and one that you should be pleased you made in the long term. Buying a policy is easy and the benefits can be considerable. Pet insurance gives you peace of mind and can literally save you thousands of pounds for just a few pounds a month.

If you would like to know more about Tesco Pet Insurance, you can call our customer service line on 0845 300 2200.