Just like any other type of insurance, pet insurance companies must be backed by underwriters. The underwriter is like a bank that helps the insurance company pay claims and other expenses if necessary. Underwriters are very picky investors.

They hope to support insurance companies which take in more in premiums than they pay out in claims. Underwriters are expected to be responsible and good judges in character and business. You should know the underwriter of a pet insurance policy before you begin paying the premiums.

If that company is not reputable, you may want to reconsider the insurance policy because the coverage could be worthless. Your State Department of Insurance can tell you more about underwriter ratings.

In addition to looking at the underwriters of your prospective pet insurers, you should also take note of how long the insurance company has been operational. Many new firms can be trusted, but there’s always more security with a trusted and established company.

Filing a claim for pet insurance is not the same as filing your own insurance claim. Normally, when you get ill, your health provider will make sure that he gets paid. If the claim is accepted, your insurance company pays the hospital or doctor directly. You do not have to do a thing.

With pet insurance, you have to pay the bill yourself in full, no matter whether or not it is covered on the policy. Then you, yourself, have to file your own claim with the pet insurer. The claim documentation may require proof of treatment from your veterinarian. If your claim is accepted, the insurer will send you a check since you have already paid the bill in full.

The demand for pet insurance policies has grown by leaps and bounds. From 1995 to 2004, the number of policies rose from 50,000 to 400,000. With this demand, you can imagine there might be a few disreputable companies around.

Honest companies will allow you to customize your own policy. You should be able to select your own deductible and be allowed to add-on extra coverage for an additional fee. Remember that you get what you pay for, and if the fees are too good to be true, they probably are.