How to choose pet insurance

The most important reason for pet insurance is to cover vet bills. Cats may have nine lives, but can your wallet afford nine trips to the vet? Even a simple operation can cost hundreds of pounds, and of course the same goes for dogs and other pets.

Pet insurance is now widely sold by insurance companies, banks and even supermarkets. You can even get pet insurance for exotic pets like snakes and reptiles.

While pet insurance won't pay for neutering, annual vaccinations or pregnancy, it will go some way to cover the costs of an injury, illness or accident. To help you get the right cover, use the following questions:

Does the insurer limit the amount of money they pay per illness?

Be very wary of such insurers. If your pet develops an ongoing illness such as diabetes or arthritis, they could stop paying for treatment. A safer bet is a pet insurance policy that limits the amount they will pay out each year. These companies will at least pay out for the lifetime of your pet's condition.

Does the insurer charge extra for your breed?

If you have a giant breed of dog or a delicate breed of cat, some pet insurance policies will charge more because it costs more to treat them. So try to find a pet insurance company that doesn't charge extra.

Does the pet insurance company offer third-party injury?

This is an important part of a pet insurance policy as it would cover you if, say, your cat caused a road traffic accident or if your dog jumped up and injured someone in the park.

Will the pet insurance company cover an older animal?

Some pet insurance companies won't insure animals over a certain age (around eight for dogs and 10 for cats). So always check.

How much is the excess?

The amount of the excess will determine how much of the vet's bill you have to pay out. Some pet insurance companies will make you pay more than others—particularly with older pets.

How often do premiums go up?

Find out if the pet insurance policy is likely to increase every year.

What else is covered?

Aside from vets' bills and third party injury, pet insurance policies may cover a number of other things that you might want to consider when making your selection. These include the cost of advertising and a finder's reward if your pet is lost or stolen, and kennelling costs if you have to go into hospital.