I recently checked out this site (
Pet Insurance Review - comparison of VPI, ASPCA, etc.) to read reviews about various pet insurance plans. I've had VPI for 6+ years now for Vinnie, my older Yorkie. It's ok. Not great, but not horrible. They have slowed down with their claims processing over the years and they seem to include more exclusions each year. The premiums go up with age and the list of things not covered is too long for my taste. HOWEVER, they do pay out a pretty nice percentage and they partially cover a lot of routine things. Personally, I would prefer to see them beef up their coverage for accidents and illnesses and reduce coverage for things like well-checks, vaccines, and routine medicine. I can budget for the regular stuff; it's the accidents & illnesses that scare me!
For my second Yorkie, I recently purchased a policy through Trupanion. A friend had some good experiences with them and they seem to get good overall reviews. Their premiums supposedly do not increase with age, you get to pick your per-incident deductible, and they stick to covering accidents & illnesses (not routine check-ups). They do exclude pre-existing conditions (so Alex's allergy care will be completely excluded). I have not yet filed a claim through them, so cannot comment on their customer service.