There are 2 main types of pet insurance cover for pets
- Comprehensive policies which provide cover for routine veterinary care as well as unexpected medical expenses; and
- Limited policies providing coverage for unexpected medical expenses in the event of accident, injury or particular conditions.
Pet insurance policies are available on either a life-long cover or 12-month cover basis. 12 month policies generally only provide cover for specified conditions for a maximum of a year, while life-long policies continue to cover existing conditions as a pet gets older.
The cost of premiums varies depending on the form of policy chosen, and the type of animal to be insured. Expensive or rare animals, and certain types of pedigree dog are generally more expensive to insure than mongrel dogs, cats, rabbits and other small household pets. There is usually an excess payable by the owner in the case of any claim, often around 20-30% of the cost of treatment. Alternatively there may be a flat-rate deductible, for example $50 per claim. Usually, the higher the deductible, the lower the cost of premiums.
Although some policies do not have age limits, others only provide cover for animals over a certain minimum age, and some have a maximum age limit, or a time limit from the time the policy is taken out. There may be annual limits to the amount you can claim, either in total or relating to specific types of illness. You are not normally allowed to claim for treatment for pre-existing conditions, or congenital and hereditary illnesses.
Limited cover policies do not generally cover routine veterinary care such as vaccinations, spaying and neutering, or flea treatments. They may also not cover the cost of having your pet put down, should this be necessary. Other common exclusions are pregnancy-related costs, elective procedures and behavioural therapy.
The insurance company may require your pet to undergo a veterinary examination before the policy is approved. Some companies allow you to make your own choice of vet, while others require you to use a vet covered by their particular scheme.
Most companies will ask the pet owner to pay veterinary bills first and reclaim the cost of the treatment, after the agreed deductible, although some allow vets to claim direct from the company. See how to choose a policy for more infomation.