I'd definately recommend you take out pet insurance, especially if you only have one cat. I now have five cats, so the cost is getting rather high & I am thinking of a savings account, but insurance provides peace of mind & I wouldn't consider a savings account for one pet - it would take too long to build up a suitable reserve & you never know when you might need it. As previously stated, if you have already made a claim or your kitten has a pre existing condition that you have claimed for, stick with the same company, otherwise you won't be covered for further problems for the same condition. There are a lot of different policies out there & basically you get what you pay for. Most vets recommend Pet Plan as they have such a good record for paying claims & their cover is high. Some of my cats are insured with them, others with M&S, but M&S premiums are going through the roof for similar cover to Pet Plan, and they have started to add clauses such as having to ring a helpline before taking your pet for emergency out of hours cover. Make sure you go for a lifetime cover policy - these continue to pay for an ongoing condition for life - your yearly limits start again each year. You can get much cheaper policies, but these will normally pay out a certain amount for each condition (then nothing further), or will be time limited (a year after onset only), or a combination of the both (whichever occurs first). Hope this helps, good luck!