Do I Need Pet Insurance? – Forbes Advisor UK

Cats and dogs are integral members of many households across the UK – and they are loved accordingly. But if your pet falls sick or injures themselves and needs treatment, vet bills can run into hundreds, sometimes thousands, of pounds.

Taking out pet insurance can save you from having to find these sums and, in the meantime, provide peace of mind that your cat or dog will always have timely access to the medical treatment it needs.

But, as another ongoing cost to the household finances, is pet insurance worth having? And what are the implications if you decide not to get cover?

Our guide will help you decide on how to move forward.

How does pet insurance work?

While cats and dogs are the most common type of animal covered under pet insurance, there are policies that cover almost every animal you can think of.

The cost of premiums will depend on factors such as the pet (and breed) you are insuring, the type of cover you buy, and your chosen level of excess – an amount you pay each time you make a claim.

You can choose to pay the quoted premium monthly, although paying annually upfront is usually more cost-effective.

Is pet insurance a legal requirement?

While, since 2016, it’s been a legal requirement to have your dog microchipped, there’s no law to say you must have pet insurance for your dog, cat, or any other kind of pet. It’s entirely your decision whether to take out a policy.

However, with the average claim topping £750, according to the Association of British Insurers (ABI), if you opt against pet insurance, you’ll need to be sure that’s the kind of sum you can afford to pay the vet from your own pocket.

How does payment work?

But would you need to find the cash upfront anyway even if you had pet insurance? This depends.

Some insurers will pay the vet directly, meaning you won’t need to find the money, even in the short term. If this is important to you, make inquiries before you buy.

That said, if your cat or dog needs emergency, immediate treatment, you may have no option but to pay the vet’s bill upfront and then make a claim to get your money back.

You should put in your claim as soon as you are aware that your pet will need treatment by contacting your insurer with your policy number. Make sure you retain all invoices and receipts.

Finally, bear in mind that even if your pet is fully covered under the most comprehensive lifetime cover, the policy will still impose caps such as on the amount you can claim on any one condition in each year.

Make sure you read the small print.

What are the implications of being without pet cover?

This will in part depend on the pet you have. Some policies include third party liability cover, which means your insurance will pay out to someone who puts forward a legitimate claim for harm or damage that has been caused by your pet.

So if, for example, you are the owner of a large breed of dog, this kind of pet insurance could be a lifesaver. Without it, you would have to cover the costs yourself.

If you have two or more cats or dogs, pet insurance may also be more of a must-have, as potential vet bills can double, or more. It’s also possible to buy ‘multi-pet cover’ which works out cheaper than buying a separate policy for each animal.

What are my options?

If you are still unsure whether to take out pet insurance, there are some ‘options of compromise’ to consider.

You could, for example, take out ‘accident-only’ pet insurance. As it says on the tin, this type of policy excludes illness and ongoing medical conditions, only paying out for medical treatment directly relating to an accident (up to an annual cap).

As accident-only is the most basic kind of cover, it’s also the cheapest option.

You could also consider self-insurance, which simply involves putting money into a savings account, rather than paying for monthly premiums. With any luck, you will never need to draw on it.

On the other hand however, if your cat or dog needs surgery, the balance you have saved might not be sufficient to cover the cost – which could run into thousands of pounds.

If your household is in receipt of benefits, you may be able to seek free medical care from animal charities such as the PDSA, Blue Cross and RSPCA. You will still be means-tested though, so do some research before opting against taking pet insurance on this basis.