We are a nation who loves our pets and consider them a member of the family. Millions of people reluctantly pay as much as £50 monthly on an average for a few kinds of pet insurance cover, all because of increase in veterinary costs which have had a subsequent impact on pay out. Vets claim that the rising veterinary costs are because of the development of new drug and technologies as well as 20pc VAT and additional operational expense.

With the sharp increase in veterinary costs, and average pet insurance claim now cost more than £700 and pet insurers have been paying out approximately £1.5m in claims on a daily basis. To decide if you should take out an insurance policy for your pet or not, you need to know how pet insurance will work for you.

If you have a pet, you can choose from the following major forms of pet insurance cover:

The Most Basic Cover – Accident Only

This type of pet insurance offer cover if a pet needs veterinary treatment because of an accident and not for any kind of illness. Some of the pet insurance policies also impose a limit on the duration of treatment and offer a predefined amount against the treatment of every accidental injury.

Basic Cover – Per Condition with a Time Limit

This is one of the least expensive covers. It will pay the vet fee for both accident and illness with a time limit of maximum one year after the accident or diagnosis of the illness. It will also impose a limit on maximum pay out and if the fee of overall veterinary treatment exceeds the defined pay-out, the remaining amount of the bill needs to be paid by the pet owner.

Mid-Level Cover – Per Condition without Time Limit

Under this policy, a cover will be offered for a predefined pay out limit without any restrictions of the time limit. It will cover any treatment as long as the policy is renewed every year. It will not cover any re-occurring illness or injury.

High-Level Insurance – Lifetime

A lifelong insurance policy is the most expensive and inclusive form of pet insurance policy. A higher pay out limit will be assigned for every year and you will be required to get the policy renewed each year. There is a possibility that an insurer may decline to renew it.

Your pet life insurance policy may often cover extra expense such as a fee for a dental treatment or burial expenses. For all forms of the pet insurance, you will be required to pay the surplus or initial part of your poet insurance claim by yourself. You may decide on to lower your pet insurance policy rate by increasing your surplus. Mostly there will be a primary flat-rate surplus charge of approximately £100.

Comparing pet insurance is the best way to find out the cheapest pet insurance cover as per your needs.