Insuring pets can be a life or death decision

But as contracts proliferate, it has never been more important to choose the correct policy to avoid being left high and dry when an animal gets older and its health deteriorates, especially after paying premiums for years when the pet was young and healthy.

Unlike motor or household insurance, switching pet insurance companies cannot be done easily. As with purchasing a pet, owners should buy for life, since any illness during one contract will not be covered in future, leaving the pet uninsured.

Buying pet insurance is not straightforward and can be very confusing. Some policies restrict the amount they will ever pay out on one condition, while others limit how much they will pay in total in any given year. However, a few companies are moving towards contracts which limit how much they will pay out per condition per year.

Jonny Langstaff, research analyst at Defacto, says: "It is not a good idea to opt for a policy which limits what is paid on a single condition to say 3,000, because once that has gone it is gone for good. Your current company will not pay more and you can never switch elsewhere.

"This is why it is important when buying pet insurance that you do your homework and choose a policy you are happy with for the life of your animal. If your pet develops diabetes, for example, and your policy is no longer paying up, you will never be able to buy cover elsewhere.

"Better are the policies which pay out a maximum per year, because, once the year is up, the clock begins ticking again, and your claims for that year will be met, up to the maximum for that year.

"Best of all, though, are the contracts which have limits per condition, per year. Marks & Spencer, Argos and NFU are among the firms going down this route. These give good scope to have claims met."

Not all pet health needs are covered by insurance, with routine treatments, vaccinations and pregnancy and breeding matters excluded. Policies will also normally have an excess of 50 to 100, which the owner has to pay before the insurer begins to contribute.

Premiums depend on where the insured live, as vet bills vary throughout the country, and on the age, health and breed of pet. Older pets are more difficult to insure and more expensive, but cats are about a third of the price of dogs

Joanne Mallon, of Sainsbury's Pet Insurance, said: "Doing without insurance is simply a false economy. Advances in veterinary science mean that our pets can get the best treatment possible these days, but these improvements, including everything from more sophisticated scans to cancer treatments, come at higher costs and the financial burden is being felt by pet owners."

That said, insurance isn't cheap either and if owners have savings and a healthy pet, then they may do better hanging on to their cash to pay vet bills as and when they arrive.

Policies come into their own, though, if owners do not have the cash to shell out several thousand pounds on operations, anaesthetics or overnight stays in an animal hospital. The premiums can seem modest when disaster strikes and a beloved animal is hit by a car or is savaged by a fox.

Vet fees have risen by 12 per cent over the past year, so owners should expect to pay between 250 and 400 per night for an overnight stay, X-rays might set them back more than 100 and surgery from 250 to 600. But the most expensive conditions are ongoing illnesses. Hip dysplasia – a common cause of limping in dogs – can cost up to 5,000 to treat, while diabetes in pets can set owners back more than 2,000.

Policies come with a range of options including a payout if the pet dies, or has to be put down, is lost or stolen, for kennel fees if they have to go into hospital or transport costs to take the animal for treatment.

Pets can be fully protected abroad, as can a pet passport, and owners can be covered against a dog causing injury to someone else or their property. They can also opt for compensation if they have to cancel a holiday because their pet is ill.

Increasing numbers of owners are seeking alternative treatments for their animals, including acupuncture, homeopathy, physiotherapy and osteopathy.

Claims involving psychological or behavioural problems are among the highest.

Janice has vet bill licked after dog's ice-cream van collision

WHEN Janice Sheridan-Harris's six-year-old dog ran under the wheels of an ice-cream van, she was naturally distraught. Not least because bichon frise Cormack had once belonged to her late mother.

Janice explains: "Cormack was mum's dog, but she only got him a few months before she passed away, so he is very special to me, a link with my mum."

An aunt had taken care of the dog while Janice went abroad for a short holiday, and the accident happened after Cormack, excited to be back, returned home.

"We were home on the Saturday, and on the Sunday Cormack was in the garden when he heard the chimes of the ice-cream van," says Janice.

"He ran through the neighbour's garden, out through their gate, and straight under the wheels of the van.

"There I was trying to sort out the unpacking and washing, and then I heard a continuous yelping noise. Suddenly I realised it was Cormack."

Janice, from Glasgow, had a telephone number for an emergency vet, which she rang and was told to bring Comack in. He was in a state of extreme shock, and had two fractures in one leg.

"Fortunately, the wheels had just clipped him. The vet stabilised him, and the next day he was taken by ambulance to his usual vets for the treatment to be carried out there."

When Janice adopted Cormack after her mum died, she had not bought any insurance. "I thought about it but didn't get around to it. It was only about six months before the accident that I saw an ad for More Th

"I knew if he had an accident and I couldn't pay for the treatment he needed that the guilt would kill me. I was really lucky I had taken out the policy six months earlier."

In the event, Cormack didn't need an operation, but other treatments including X-rays came to nearly 800. Although now back to normal, it took six months for him to get fully back on his paws.

Janice said: "I was very relieved to have the insurance policy. I could probably have paid the 800, but the big fear was that he needed operations which could have cost several thousands."