The RSPCA has reported that the number of abandoned animals in England and Wales rose by 57% in 2008 compared to the previous year in a sign that pets are becoming the latest victims of the credit crunch. With owners struggling to meet the costs of food and vet bills they are leaving their pets behind in an effort to make ends meet.
However, in many cases, this could be avoided with pet insurance. On the face of it, it may seem like one more expense you could do without, but pet insurance can be a significant money saver if you are landed with an unexpected vet's bill.
Why pet insurance is so important
Figures from the RSPCA show that almost 50% of pets in the UK will require medical treatment at some point this year at an average cost of £220. Yet pet insurance is available from as little as £5 a month - opting not to insure the family pet could therefore prove a false economy.
Pet insurance provides cover for vet fees - the most common cause of claims. However, when choosing a policy ensure you know exactly what veterinary treatment is covered and watch out for lower limits that some insurers may place on conditions - for example you may have £4,000 worth of vet fees cover for the year but the insurer may only pay out up to £2,000 per condition.
You won't be covered for all veterinary treatment so check what's excluded. Common exclusions are spaying or castration fees, annual vaccinations and pre-existing medical conditions.
Some insurers even offer lifetime protection with which you can cover the cost of ongoing treatments for your animal if it suffers a long-term condition. This can be quite an important area. If your pet develops a long-term condition, such as asthma or diabetes, it will require ongoing treatment.
If your pet's illness is only covered until the policy ends you will not be able to get the cost of treatment paid in subsequent years as it will then be classed as a pre-existing condition, so no insurer will cover it. If you opt for lifetime cover, and your pet does contract a long-term condition, it will mean that although you have to reinsure with the same provider each year, you at least have the reassurance that you won't have to pay the treatment costs yourself. It can therefore prove a very valuable condition of your policy.
Most pet insurance policies also offer third party cover so if your dog runs in front of a car and damages it, for example, you would be covered for any claims made against you. Other policy options that are available with a limited number of insurers include dental cover and coverage for your animal during commercial events. However, this cover is less common and may cost more to take out.
When should you take out pet insurance?
Every year one in eight cats and dogs under the age of three suffers a medical condition that could recur later in life according to Sainsbury's Finance.
The insurer finds that more than 140,000 dogs under the age of three suffer dermatitis every year and more than 170,000 suffer lameness. Cats aren't immune either with around 18,000 under the age of three being hit by lameness and 28,000 suffering cystitis.
The problem if your pet suffers from an illness at an early age which could then recur in later life, is that by the time you take out insurance they could be regarded as pre-existing conditions and your provider won't cover them. So it really is best to take out pet insurance as early in your pet's life as possible to make sure they're protected.
What else should you look for in a policy?
As with any insurance policy you should read the terms and conditions carefully to familiarise yourself with any exclusions so you know what is and isn't covered.
Pay close attention too, to the payment options available. If monthly payments are available check to see whether they are "calendar" or "lunar" payments - calendar payments are 12 equal amounts; but lunar payments are taken every 28 days meaning there are 13 payments a year.
Also check the policy excess. Standard excesses are between £40 and £50 and generally the higher the excess, the lower your premium will be. However, you should only set it at a level you can comfortably afford.
How much does it cost?
To give you an idea of how much pet insurance may cost we ran some quotes with our pet insurance comparison tool. A two-year-old West Highland Terrier would cost just £84 a year to insure with E&L and includes £1,500 in coverage for vet fees. A five-year-old Cross Breed meanwhile could cost even less to insure for the year at just £76, also with E&L.
Quotes are similarly cheap if you have a cat. For example, a five-year-old Persian cat would cost just £58 a year to insure with the cheapest provider on our comparison tool.
So why not run your own search to see how much it would cost you to insure your dog or cat? While essentials like paying the mortgage will always take priority, cutting back on pet insurance could be costly in the long term and without it you may not be able to afford a vital treatment.
Disclaimer: Please note that any rates or deals mentioned in this article were available at the time of writing.
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