In terms of coverage, the lowest cost pet insurance policies provide 12 month cover for accidental injury or specific health conditions, while comprehensive coverage including the cost of routine veterinary care, theft or straying and other pet-related expenses can be considerably more expensive. 

In addition to policy type, the main factors determining the price of pet insurance and the level of premiums are related to the species of animal insured, its characteristics and monetary value. In general, very valuable, exotic or dangerous pets are the most expensive to insure.  These include, for example, prize-winning horses, rare birds, snakes and monkeys.  Pedigree dogs are considerably more expensive to insure than mongrels, and cats are cheaper to insure than dogs. Premiums will be even lower for many other small domestic animals, such as rabbits and hamsters. 

The insurance company may also take into account the age and state of health of the animal in calculating premiums.  In the case of some pet insurance policies, premiums increase over time as the pet ages and its likelihood of becoming sick increases. If the animal has pre-existing health conditions, the price of the insurance may be increased to reflect its state of health, even if treatment for that specific condition is not covered by the policy. 

Some insurance companies also take into account the lifestyle of the pet, for example whether a cat is let outside or generally kept indoors, with premiums being lower for indoor cats. 

The area that you live in may also make a difference to the cost of your pet insurance premiums.  This is due to variations in the cost of veterinary care, particularly between cities and rural areas. 

Finally, discounts may be applied to policies covering more than one pet, reducing the cost of premiums per animal covered.