What is Pet Insurance

Pet insurance is a special type of insurance that is designed to cover veterinary costs and related expenses when a pet becomes ill or is involved in an accident. Some more comprehensive pet insurance (insurance64.co.uk/pet/general-pet-insurance/) policies will also pay out at the time a pet dies, becomes stolen, is involved in an accident, or suffers from an illness. Like all insurance contracts, pet insurance is designed to manage risks, in this case the financial risks associated with owning a pet. Pet insurance can be taken out for many different animals, although most contracts are designed for the most popular domestic animals, dogs and cats.

The first ever pet insurance contract was taken out way back in 1890, although unlike healthcare insurance it is fair to say that it didn’t exactly set the insurance market on fire. Early pet insurance was often associated with horses and livestock, and had as much to do with the protection of livelihood as it did with the protection against the loss of a companion. The first ever pet insurance policy in the United Kingdom took place in 1947, and the number of policies in the U.K today is second only behind Sweden.

Practically all pet insurance contracts are designed to reimburse the policy owner when a pet suffers from illness or injury, in order to help with the financial costs associated with professional veterinary care. However, some more comprehensive pet insurance contracts may also pay out a lump sum at the time a pet dies or suffers from serious illness, similar in many ways to a regular life insurance policy. Pet insurance is actually a variation of property insurance, although many pet owners like to think of it more as a form of health insurance for animals.

Pet insurance can be of two basic types; lifetime and non-lifetime. Lifetime pet insurance remains in force for the entire lifetime of a pet, whereas non-lifetime contracts only remain in force during the course of a year. It is important to note that any pre-existing medical conditions may affect the premium rates of pet insurance, and need to be listed in any pet insurance contract. Pet insurance has become more popular in recent times, due to the rising expectations of pet owners regarding the health and wellbeing of their favourite animals. Customisation of pet insurance policies is possible, and contracts are available thorough large insurance firms and niche insurance companies.