Declawing Pet Insurance

Bringing home a new pet is always a stressful time - both for the owner and the animal. A new addition to the family will feel lost, bewildered, and wondering where that big furry milk-machine disappeared to.

As a new owner, you may worry that your pet won't settle into family life, or perhaps you already have other animals and are concerned how they will react to the intruder. You also have the added worry of buying suitable food and bedding, deciding where the toilet will be, how your pet will be exercised - more of a problem for dogs than cats - and a myriad other matters to resolve.

One issue that doesn't immediately leap out at you is that of insurance. Only 15% of dog owners and 7% of cat owners have their pets insured. There is no good reason for this. Pet insurance is relatively cheap compared to the costly vet bill you could face if you don't get your animal insured.

Claiming on pet insurance mirrors the way human beings use the NHS. For the first seven or eight years, most insurers will have relatively minor claims experience from pet owners. Usually, this changes in the next few years.

So just because you have a lovely two-year-old dog that never seems to get ill, don't kid yourself: in another seven or eight years you'll be spending hours at a time at the vet's - and potentially paying through the nose.

And taking a pet to see a vet can be as costly as having an operation yourself:

• A hip replacement for a dog can cost up to £3,000

• Care for a cat badly hurt in a car accident can cost £1,500 or more

• Bowel surgery and subsequent hospital care for a dog that has eaten a sharp object can cost up to £2,500

• If your dog falls down a rabbit hole while out on a walk and fractures her leg, for example, treatments can be as high as £1,500.

• And if your pet develops any on-going health problems, such as diabetes or cancer, treatment costs can run into thousands.

Insurance can help out greatly with this. You will be required to pay an excess, the amount of which you can normally set yourself - the standard minimum is £50 - and your insurer will pay out costs over and above that.

Lifetime cover is best for pets like dogs, cats and reptiles, but check your policy. Some will only cover your pet for conditions developed after the policy was taken out. Others will only cover a particular illness for up to a year, then exclude it from the policy once that year is up.

Some policies have an option to pay up to a fixed amount, such as £4,000, per year which will cover all conditions. However, if your diabetic cat suddenly develops arthritis, the upper limit on your policy may not cover all your new costs. An alternative is to have a fixed cost per condition, but this is only done on an annual basis - no good for lifetime conditions.

By far the best type of pet insurance is lifetime cover with a fixed amount per condition, per year. This will guarantee your pet is insured no matter what illness they contract or how long-term the treatment is.

Once you've settled on the type of cover, there are a few more things to bear in mind:

• Some companies will offer a multi-pet discount for all the animals in your household
• If you are a dog owner, consider public liability cover - if your dog attacks someone the insurance will cover any compensation or medical bills.
• Decide how you want to pay for your insurance. A one-off annual fee can be handy for getting the cost out of the way, but you may find it easier to pay monthly - ask about interest-free direct debits.
• Check how much your premium will increase if you make a claim. It's no good having all-singing, all-dancing pet insurance you're too scared to claim on it!

Finally, if you've decided on lifetime cover, make sure it does mean lifetime. Dogs and cats can live as long as 15 to 20 years, so ensure your 'lifetime cover' isn't just for 10 years.