I have pet insurance and have done ever since I got my babies, it has proved to be a lifesaver!! literally!! I pay just under Â£5.00 a month each cat (I get a discount for insuring multiple pets. Had I not had it a while ago, Monty (my Cornish Rex) would not be with us today... he was rushed in for emergency surgey on his intestines, it cost a total of around Â£700.00 we could never have afforded to pay that, but thankfully, the insurance did!
Although we DID have a hard time getting it as the first company I went with were awful!! But as soon as they had paid for his treatment I cancelled ALL my policies with them and have since found another company
It covers up to Â£3000 worth of vets bill for each cat and on each incident, it covers up to Â£250 if you lose your pet or it gets stolen - the money is to search for the pet and offer a reward, it also covers kennels/cattery fees if you have to go in hospital for any reason (other than pregnancy), and it covers third party damages up to about Â£5000 (for a dog, it covers up to Â£1 million on this) It also covers any other kind of treatment your pet has, like homeopathy etc or behavioural treatment.
I wouldn't be without it now...
PS you can also claim the price of your pet back if it dies before the age of 11 for any reason, and you can still claim it after 11 if it dies from an accident. Theres lots of other stuff it covers too, but I can't remember all of it..