Pet Insurance pays the veterinary costs if one's pet becomes ill or is injured in an accident. Some policies will also pay out when the pet dies, or if is lost or stolen.
Many pet owners believe pet insurance works like human health insurance. Actually, pet insurance reimburses the pet owner after the owner submits a claim to the insurance company. The claim is paid according to the terms of the policy purchased by the pet owner.
UK Policies usually pay 100% of vets fees. Policies in the USA usually offer to pay 80-90% [4] of the costs minus a deductible depending on the company and the specific policy. The owner will usually pay the amount due to the Vet, and then send in the claim form and receive reimbursement, which some companies and policies limit according to their own schedule of necessary and usual charges. In the event of a very high bill, some veterinarians will allow the owner to put off payment until the insurance claim is processed. Some insurers pay veterinarians directly on behalf of customers. Most U.S. policies require the pet owner to submit a request for fees incurred. (Note How do I file a claim)[5]
Traditionally, most pet insurance plans did not pay for preventative care (such as vaccinations) or elective procedures (such as neutering). Recently however, some companies in the UK and US are offering routine care coverage, or some times called comprehensive coverage.
In addition, companies often limit coverage for pre-existing medical conditions, thus giving owners an incentive to insure even very young animals who are not expected to incur high veterinary costs while they are still healthy.
Some insurers offer options not directly related to pet health, including covering boarding costs for animals whose owners are hospitalized, or costs (such as rewards or posters) associated with retrieving lost animals. Some policies also include travel cancellation coverage if owners must remain with pets who need urgent treatment or are dying.