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Pet insurance is a form of insurance that is often overlooked by pet owners. But, it can help save you from unexpected costs when your cat or dog has an emergency. Pet Insurance is a health care policy for your pet that will provide payment or reimbursement for specific health expenses that are covered by the policy. While pet insurance can help protect your finances, not all pet insurance policies are created equal — you must understand what is covered before choosing a policy for your pet. Two common types of pet insurance are dog insurance and cat insurance.