Pet insurance explained
There are four main types of pet insurance: lifetime, maximum benefit, time-limited and accident only. Lifetime cover keeps paying for ongoing conditions year after year as long as you renew; the others limit cover by amount, time or type. Unlike home and car insurance, pet renewals aren’t covered by the FCA’s loyalty penalty ban.
By the billsqueeze team · Facts checked: 31 October 2026 · Updated:
- Four types: lifetime, maximum benefit, time-limited and accident only.
- Lifetime cover keeps covering ongoing conditions while you renew.
- Most policies don’t cover pre-existing conditions.
- Pet renewals aren’t covered by the FCA loyalty penalty ban.
The four types
| Type | How it works | Ongoing conditions |
|---|---|---|
| Lifetime | A vet fee limit that resets every year when you renew | Covered year after year, as long as you keep renewing |
| Maximum benefit | A set amount for each condition, with no time limit | Covered until that condition’s limit is used up |
| Time-limited | Each condition covered for a set time, usually 12 months | Not covered after the time limit |
| Accident only | Covers injuries from accidents, not illness | Illness not covered |
Things to check
- The vet fee limit per year or per condition.
- The excess, and whether a percentage of each claim is added as your pet gets older.
- Pre-existing conditions: most policies don’t cover illnesses your pet had before you took out cover.
- Age limits for new policies.
Renewing pet insurance
The FCA rule stopping insurers charging renewing customers more than new ones covers home and car insurance only, not pet insurance. Switching can also be tricky: a new insurer usually won’t cover conditions your pet already has.
billsqueeze doesn’t give insurance advice or recommend policies. This guide is general information; check the policy wording before you buy.
Get a reminder before you renew
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Common questions
What is lifetime pet insurance?
Cover with a vet fee limit that resets every year, so ongoing conditions stay covered as long as you keep renewing.
What is time-limited pet insurance?
Cover for each condition for a set time, usually 12 months, after which that condition isn’t covered.
Can I switch pet insurance?
Yes, but a new insurer usually won’t cover conditions your pet already has, so check before you move.
Does the loyalty penalty ban cover pet insurance?
No. It covers home and car insurance only.