Quick guide to online pet insurance for your dog

All pet insurance is not created equal. In fact, even when deciding on the type of dog they would like, potential owners need to know how expensive their choice could be. Coverage is difficult for many breeds, especially in the competitive world of online pet insurance. The ‘Computer says no’ to a huge list of breeds, including dogs crossed with those excluded breeds. A ‘mongrel pup’ could easily turn into something that looks like an excluded breed. If a vet describes a dog as a ‘pit bull mix’ at any point, the insurance company would either refuse to insure the pet or pay out a claim if coverage was already in effect.

Rather than go through all the plans and providers online, this guide is a review of the policies offered by the leading online providers that dominate the UK pet insurance market. They cover most regular dog owners with pet insurance. This quick guide focuses on the needs of the average pet owner, it is not intended to cover the requirements of people who breed show dogs, for example.

The premium charged for more or less equivalent benefits varies enormously, although think in terms of £15 per month which is about average for the type of competitive products under consideration. Anything more and there is probably a good reason, anything much less and there could be an undesirable feature that most would want to avoid! However, cost-effective coverage can be purchased online for a very reasonable cost, as long as the buyer is aware of the potential dangers. The most important things to know are outlined in these top tips.

Pet insurance for dogs: eight important tips

1. The main reason why a policy is very cheap because it covers less, let’s make that clear from the beginning. For example, some money-saving policies are designed to only cover a dog for the first 10 years of its life. This age limit can be quite well hidden in the fine print. The insurer knows that there are health problems with older animals. Veterinary bills are unavoidable and expensive, especially in the diagnosis and treatment of chronic or serious conditions. The very low premiums charged for pet insurance that ends when the dog is 10 years old (or younger for certain breeds) simply reflect that the policy is not in force when most “end of life” claims occur.

2. Veterinary fees, how much to insure? Most people probably think that £2500 to cover vets fees is more than enough. Unfortunately, this is often inadequate, and certainly more likely to be so in 10+ years, when claims are almost inevitable. A significant number are now capped at £4000 which has been taken as the benchmark for this guide.

3. Some providers keep their premiums low, but make up for it by drastically increasing their excess for vet fees as the insured dog gets older. Often this also takes the form of a percentage contribution to the cost of treatment, usually 20%, but some are higher. This would mean a vet bill of £2000 would be split and the policyholder would pay £400 for the claim plus their policy excess, say another £90. In this case the insurance company would only pay £1510. For pensioners or others on a fixed income, the £490 they would suddenly have to find could spell disaster. Hence, some buyers prefer to pay a higher premium for a policy that does not change and always has the same franchise, throughout the life of their animal.

4. In addition to increased premiums, the terms and conditions of the policy may change as the insured pet ages. Excess has already been mentioned. Standard policies paid monthly will generally exclude any conditions for which a claim has already been made. Eczema is a good example of a condition that can affect a dog for many years, only Lifetime Coverage would still allow the policyholder to continue claiming for it, after the next policy renewal, after the initial claim . Most good pet providers offer a lifetime coverage option. They all charge about 35% more for this than their standard monthly coverage.

5. Premiums increase, reflecting the higher cost of claims, as well as the higher probability of a claim occurring. Veterinary fees have been rising well above the rate of inflation, simply reflecting the wide variety of treatments available today. The quality offered can be comparable to that of a private hospital with prices to match. Also, as a dog ages, the premiums will increase. One provider, E&L Insurance, takes a more transparent approach by only offering ‘senior pet’ insurance for dogs over the age of 8, for example.

6. Be aware of online discounts and special low premiums for puppies. These discounts only apply for the first year of insurance, it will be the full price the next year and the following 12 years. To verify true value, it is recommended to test multiple online quotes using different ages of pets, this will identify any providers trying to attract business with early discounts. The cheapest isn’t always the best value over time, so spending a few minutes comparing prices can go a long way.

7. Pay for the brand. Many big brands, particularly supermarkets and banks, offer pet insurance, however its coverage is outsourced to specialist providers. The brand will take a significant percentage because they spend a lot to market the product. They offer access to a large number of loyal customers and charge for the privilege. However, the same specialists often offer the same products directly and for less.

8. Beware of breed specific restrictions, known issues with certain breeds such as hip displacement with German Shepherds and the short lifespan of many larger dogs will be reflected in the terms and conditions of the policy. Subscribers will be more specific early on regarding these restrictions, it’s crucial to understand them. Basically, the insurance is only offered to cover unexpected costs and not unavoidable payments for inherent disorders. Also, most policies do not cover tooth or gum disease, so never allow a dog to develop a sweet tooth.

In compiling the table below, each supplier was asked to quote online for one medium-sized pedigree dog: a new 8-week-old puppy. The cover being sought was £4000 vet fee cover, although alternative options are shown where this exact figure was not available. This sample was taken on October 10, 2010.

Provider / Consider / Covered Vet Fee / Premium

Argus Gold Cover / £65 Excess / £4,000 / £15.77

HE Silver (monthly) / £159 or double excess £49 for claims over £1,000. Ages 8 and up a 35% contribution towards vet fees / £4,000 / £8.82

church / £65 excess plus 20% contribution from 7 years. Online Discount / £3,000 / £10.98

LV=Liverpool Win/ franchise of €60. 10% Online Discount / £5,000 / £10.96

pet-insurance.co.uk/ franchise of €90. Standard cover. Up to 10 years. 20% Off Online / £4,000 / £7.79

pet-insurance.co.uk / £90 excess. Lifetime cover. No age limit. The owner is expected to pay 10% of the pet’s overnight hospitalization costs. Includes 20% First Year Discount / £4000 / £11.47

More than / Excess of £70 plus 10% of claim cost for children under 9 years of age, increasing to 20% for those over 9 years of age. / 20% discount online. / £3,000 / £12.75

pet plan / £75 deductible plus 20% contribution for people over 8 years discount 1 month free. / £3,000 / £15.25

Sainsbury’s / £100 excess Three months free (limited time offer). Earn Nectar Points / £3000 / £14.73

Tesco / €60 franchise. Policy terms stay the same for the life of the pet / £4000 / £17.68

The best pet insurance

It depends on how much coverage the pet owner needs. Some vets are prepared to reveal typical treatment costs, this can be a sobering conversation! Arguably, a person could open a separate savings account and pay an amount equal to one of the higher-priced policies each month and become their own insurance company. However, many people do not have the discipline to do this and if something happens after a year, the amount saved would not cover much.

Unfortunately, even a healthy young dog can get into all sorts of trouble. Ask someone who has paid £3000 for an operation because his pet was involved in an accident. Pet insurance also covers legal liability, something people don’t think much of until their dog runs out an open door or slips his collar on a busy street.

Just looking for the lowest price? There is always the option of buying a policy with a large franchise or contribution. This coverage will pay most of the really big bills, should the worst happen. Better this than no coverage at all. Products offered by E&L Insurance, for example, especially for dog owners who live outside London or home counties, fit into this category.

Much depends on your personal circumstances. Many people on a fixed income, those with existing debt they are paying off, or people who are naturally cautious often prefer to pay for coverage with the minimum excess or contribution. They would rather let their insurance company worry about getting a big bill from the vet. Therefore, even though it is relatively expensive, a pet policy like the one offered by Tesco would suit your needs.

Mid-priced policies represent a compromise. However, the concern is that many people are unaware of the terms and conditions of pet insurance policies and are simply attracted by the low price of a well-known brand. Unfortunately, some only find out when it is too late that they have to pay a substantial contribution towards any claim, especially as their dog ages.

This guide is intended to help readers make an informed decision about the pet insurance product they choose for their dog.