good topic, as it may soon be compulsery for every dog in GB to have pet insurence. I think its a good idea, it will put vet prices up though. I know everytime we take Bailey to the vets the first thing they ask is whether he's insured (and they do put more money on insured dogs). The main reason the govenment are thinking of bringing it in id due to the dog bites that are happening, its going through Civil courts and costing way to much. If insured then it goes through insurence rather than courts.
In England pet insurence isn't to expensive, i pay £11 a month, through Diect Line insurence, he's 5 years old now and we must have claimed a good £2000 (he was an accident prone pup) back from them.