Firstly, what is pet insurance? Pet insurance covers the costs of veterinary bills should one's pet become injured or ill. In addition to this, some policies will pay out if the pet dies or is lost. The reason for pet insurance is that veterinary bills are notoriously expensive (due to the cost of specialised drugs and medical techniques) and owners need to ensure they can protect and care for their pets, without limitation, in case of the unexpected.

The UK currently has the second highest number of pet insurance policies in the world. It is unsurprising therefore that the number of pet insurance comparison companies has also risen proportionally in recent years. People are keen to find the best quotes and the best level of comprehensive insurance in a very competitive insurance market.

Pet insurance comparison companies are said to be particularly useful, not only in their ability to show customers which policies are the cheapest but also in helping to compare the minefield of clauses within individual policies. For example, some pet insurance policies in the UK will pay vet fees in their entirety upon a claim, but there are plenty of cheaper policies on the market that charge an excess on veterinary fees, just as with car insurance. For certain customers, it is favourable to hold a cheaper policy and take the risk of an insurance excess while for others, it may be better to take the more expensive but more comprehensive option.

 It is interesting to note that some insurers in the UK now offer coverage for routine procedures such as vaccinations, neutering and dental care. Further to this, certain providers may also cover complementary therapies such as physiotherapy or include the option to cover against non-health related costs such as boarding fees for an animal when the owner is hospitalised.

When insuring a pet, a customer will need to decide if they want lifetime or non-lifetime cover. Again, pet insurance compare providers are available to help buyers make an informed choice on the best-suited policy. Each type of policy has its benefits and limitations. The best type of policy will depend on the pet, its age and medical history and not least the owner's budget!

Some policies in the UK offer a third party type of insurance for dogs, again similar to motor insurance. For example, should a dog be involved in a car accident that causes damage to a vehicle, the insurance provider will cover the cost of repair to the damaged vehicle for which the dog owner is liable.