Pet insurance is intended to cover the unexpected costs of pet ownership, which may arise if your pet has an accident, becomes sick or goes missing, for example.  Some comprehensive policies also cover routine and preventative veterinary care. 

Depending on which type of cover you choose, your pet-related medical expenses will be covered by the insurance company up to an agreed limit within a specified time.  The costs of premiums vary depending on the type of animal being insured. There may be a limit on the amount that can be claimed, and there are likely to be exclusions for such matters as pre-existing illnesses.

• Payment of veterinary bills are if your pet becomes sick or has an accident.
  
• The cost of routine treatments such as medical check-ups, vaccinations, flea treatments, nail clipping, spaying or neutering.
  
• The cost of advertising, reward and recovery of your pet, if it is stolen or goes missing.
  
• The cost of replacing your pet at its purchase price or current market value, if it dies unexpectedly from illness or accident, or if it goes missing and is not recovered.
  
• Payment of boarding kennel or cattery fees, if you are hospitalized for more than a few days and are unable to care for your pet.
  
• The cost of cancelling your holiday, if your pet becomes ill or injured and has to undergo surgery or hospitalisation within 14 days of your departure date.
  
• Third party liability if the animal causes injury to another person or damage to premises.

More unusually, some policies are available which cover the cost of alternative medicines or behavioural therapy for pets.  Payment of the costs of travel to the veterinary clinic may also be available.