Veterinary costs are constantly rising like everything else.

Yet last year, when my cat Bonzo suddenly became dehydrated and diagnosed with early onset kidney failure, he was treated immediately. The last thing on my mind was the thousands of dollars in vet charges about to be incurred.

Today Bonzo continues to be happy and healthy because of pet insurance.

Pet emergencies can cost thousands of dollars.

Several years ago my sister's dog ran out into traffic, fracturing several bones. It was a very traumatic experience for everyone involved. The kids were crying, the dog was crying, bystanders were crying.

Making sure the dog wasn't suffering was everyone's type priority. Like me, my sister had pet insurance and so the issue of the thousands of dollars likely needed for treatment wasn't even discussed.

He was rushed to the vet hospital, where he was treated for several days. When he came home, the smile on my nephew's face as he ran up and welcomed his best friend home was truly priceless.

What is pet insurance?

Pet Insurance is a policy that covers your household pets such as cats and dogs as long as they're healthy. Whether your dog or cat is mixed breed or pedigree most insurers will cover the animal for the whole of its life.

That means if an emergency medical situation arises, I can make the best choices for the comfort and health of my friend, rather than what best suits my pocketbook of the day.

What does pet insurance cover?

Pet insurance usually covers more than just the vet bills. It can also cover emergency kenneling costs, theft and travel.

Vaccinations and routine treatments such as worming and flea treatments are also excluded.

Millions of pet owners treat their animals like family.

I have four cats, who are members of my family. I have had pets my entire life. I cannot imagine the distress of being in a situation where my pet's problem is curable but the cost is too high and I put my animal to sleep.

Or, I opt for less than ideal treatment again because of cost constraints.

I would never do that to my own children so why would I do that to my pets?

Pet insurance can give you the piece of mind that you are covered against unexpected bills.

Pet insurance can take away the financial worries when a pet is seriously ill.

Knowing this, when I first discovered pet insurance in the late 1980's (while renewing my life insurance) I jumped all over it. At that time, $25 per month to cover three cats seemed like peanuts. Today, I pay $60 for 4 cats.

When should I get pet insurance?

I have insured all of my cats within the first six months of life.

It is often difficult to get insurance for older pets. Usually pre-existing illnesses will not be covered. That's why it is important to think about insurance as soon as possible.

It is now possible to pay a monthly premium to insure your pet against veterinary fees.

Are there different levels of pet insurance?

Just like the different coverages on your life insurance policy, pet insurance plans are the same.

There are usually different levels of coverages available where different values or events are covered. Usually the higher the monthly payment, the greater the value of coverages.

Different aspects of coverages you need to review include: Vet's Fees, Coverage for Life, Accidental Damage, Death from Illness, Death from Accident, Advertising & Reward, Theft or Straying, Third Party Liability & Legal Expenses, Boarding Kennel Fees, Holiday Cancellation Costs and Overseas Travel.