Lifetime vs accident-only pet insurance: what's the difference?

The short answer

Lifetime pet insurance covers any eligible conditions, accidents and illnesses year after year, whereas accident-only pet insurance (as the name suggests) solely covers injuries from accidents, and won’t cover your pet in the event of ill health. So a broken bone could be covered by either policy, whereas new health issues like skin allergies or joint problems could only be covered by lifetime.

As for maximum benefit and time-limited policies, these work differently, with limits on how long your pet is covered for and how much they’ll cover towards vet fees. Let’s break down how the four main types of pet insurance work. 

The four types of pet insurance cover, explained

When you’re comparing pet insurance, you’ll usually come across four main types of cover: lifetime, maximum benefit, time-limited and accident-only.

The names can sound confusing, so here’s what they mean in simple terms.

1. Lifetime pet insurance

Lifetime pet insurance is cover that can continue for an eligible illness or injury for as long as you keep renewing your policy and meet its terms and conditions..

The important part is that the cover limit refreshes each policy year. So, if your pet develops a condition that needs ongoing treatment, you can continue claiming for it in future policy years, subject to your annual cover limit and the policy terms and conditions.

For example, imagine your dog develops diabetes and needs regular medication and check-ups. With a lifetime policy, an eligible condition can continue to be covered year after year for as long as you renew with the same insurer, rather than stopping simply because a set amount of time has passed.

This is why lifetime cover is often seen as the most comprehensive type of pet insurance.

2. Maximum benefit cover

Maximum benefit cover gives you a set amount of money to use towards a pet’s condition, but there isn't usually a time limit on when you use it.

For example, you might have £5,000 of cover for a condition. You could use that £5,000 over a few months or several years. Once you've used the full amount, though, there's no more cover for that condition.

The key difference from lifetime cover is the amount doesn't refresh each year. Once you've reached the maximum, the cover for that condition has been used and you can’t use it to claim in the future.

3. Time-limited pet insurance

Time-limited pet insurance provides cover for a condition for a set period, often 12 months from when the condition first starts or treatment begins, depending on the policy. There may also be a financial limit during that period for vet fees related to the condition.

Once the time limit ends, or the maximum cost limit is reached (if there is one), you can no longer claim for that condition in the future, even if your pet still needs treatment. The condition becomes permanently excluded from the policy.

This type of cover can work differently from maximum benefit cover as the main restriction is time, rather than simply the amount you've claimed.

4. Accident-only pet insurance

As the name suggests, accident-only pet insurance covers eligible injuries caused by accidents. It doesn't generally cover illnesses.

For example, if your dog hurt their leg in an accident, an accident-only policy may cover eligible treatment for that injury. But if they developed an illness such as diabetes, skin disease or arthritis, that wouldn't be covered.

Accident-only policies can therefore be a straightforward option if you want cover specifically for unexpected accidents, rather than illnesses.

What does “lifetime” actually mean year to year?

“Lifetime” can sound like your policy runs continuously for your pet's whole life, when in reality, pet insurance policies are usually annual contracts that need to be renewed each year.

The important thing to know is what happens to eligible conditions when that renewal happens.

With lifetime cover, an illness or injury that started while your pet was insured can continue to be covered in later years, subject to the policy terms and available cover. Your annual vet fee limit refreshes at each renewal and there’s no time limit on how long you can claim for a specific condition.

At Napo, for example, policies are 12 months long. If a policy is offered for renewal and you decide to continue your cover, eligible conditions that arose while you were insured would be covered if they returned in the future or if the condition is ongoing. 

So when you're comparing policies, don't just look for the word “lifetime”. Check how much the annual limit is and whether there are any inner limits for particular treatments or conditions.

Why cover type matters more as your pet gets older

When your pet is young and healthy, it can be easy to focus mainly on the price of your policy. As they get older, though, the type of cover you have can become more important.

Some health problems need treatment over a long period. If your non-lifetime pet insurance policy stops covering a condition after a set amount of time, or once a maximum amount has been paid, you may need to pay for further treatment yourself.

Lifetime cover is designed differently: once an eligible condition is covered, it can continue to be covered across policy years, subject to the policy terms and annual limits, for as long as you stay with the same insurer.

That doesn't mean lifetime cover pays for every vet bill, but it does mean eligible conditions continue to be covered year after year.

What happens if you switch insurer?

If your pet developed a health problem while insured with one provider, a new insurer may treat that problem as a pre-existing condition if you decide to switch.  

This can apply even if the condition hasn't been formally diagnosed or you haven't made a claim. The exact definition of a pre-existing condition varies between insurers, so it’s important to check before switching.

Switching to a new provider also usually means a waiting period is applied, during which you can’t claim for certain conditions. But there is an exception when switching to Napo. If your pet has been insured continuously with no gap in cover up until the point you switch, and you can evidence this, we may be able to waive the waiting period allowing you to claim from when your policy starts with us. 

Continuity can make a difference with lifetime cover. Staying with the same insurer can allow an eligible ongoing condition to remain covered under the terms of your existing policy, whereas moving to a new insurer may mean that condition isn't covered by the new policy.

If you're thinking about switching, compare the policies carefully and make sure you understand what happens to any conditions your pet has already experienced.

Main takeaway

There isn't one type of pet insurance that's right for every pet parent. The key is understanding what each type covers, how much it will cover and what happens if your pet needs treatment for a condition that lasts longer than a single year. It’s important to find the insurance that’s right for you and meets you and your pet’s needs, now and in the future. 

Frequently asked questions

Is lifetime pet insurance worth it?

It depends on what you want from your cover and what you're comfortable paying. Lifetime insurance provides ongoing protection for eligible illnesses and injuries as cover can continue across years and the policy limit refreshes every year. However, other types of policies may be suitable if they match what you're looking for and the needs of your pet.

What's the difference between lifetime and maximum benefit cover?

Lifetime cover refreshes its annual limit, allowing an eligible condition to continue being covered year after year. Maximum benefit cover gives you a set amount to use for a condition, but once the maximum benefit for that condition has been used, you cannot claim any more for it. 

Is accident-only cover enough?

That depends on what you want your insurance to cover. Accident-only policies are designed for eligible accidental injuries, rather than illnesses. If you want cover for both accidents and illnesses, you'll need a policy that includes illness cover.

Can I switch from accident-only to lifetime cover later?

You may be able to, depending on the insurer and policy. However, moving to a new or different policy might mean that any conditions your pet has already experienced could be treated as pre-existing and may not be covered. Always check the new policy's terms before making a change.

Does lifetime cover cost more?

It can do, as you're paying for a more comprehensive level and duration of protection - but price isn't the only thing to compare. Look at the annual vet fee limit, excess, exclusions, waiting periods and any limits on particular treatments or conditions too.