Australians are known for their love of pets, with 69% of households owning a furry companion1. This connection to animals drives significant spending, with Australians investing over $33.2 billion annually to ensure their pets are healthy and happy2. But as veterinary care costs continue to rise, many pet owners are seeking ways to manage their pet’s healthcare expenses. Pet insurance can offer a financial safety net, helping to cover the costs of unexpected accidents and illnesses. However, with multiple options available, it’s essential to choose the right policy that fits your pet’s needs and your budget. 

Why pet insurance is important 

Pet insurance helps mitigate the financial burden of veterinary care, covering costs associated with accidents and illnesses. Veterinary costs continue to rise, partly due to advancements in medical treatments and technologies that are now on-a par with human healthcare. However, unlike human healthcare, veterinary care doesn’t receive government subsidies. Pet insurance can help to reduce the financial stress experienced by pet owners by covering a portion of the costs, ensuring your pet receives the veterinary care they need without delay. 

Types of pet insurance policies 

There are various pet insurance policies available in Australia, each offering different levels of cover to suit various needs. 

Comprehensive cover 

Comprehensive cover is ideal for pet owners seeking broad protection. It typically covers a wide range of accidents, illnesses, and treatments. While premiums might be higher, options like choosing a lower excess or a lower benefit rate (the percentage of the vet bill that will be reimbursed) can help reduce out-of-pocket expenses at claim time. 

Limited cover 

For those looking for a more affordable option, limited cover may be the right fit. While it provides lower premiums, it also comes with more restrictions and exclusions. Within limited cover, you can choose from: 

  • Basic care: Covers a limited dollar amount annually or per health condition. 
  • Extended accident: Provides coverage for specific accidents and illnesses. 
  • Indoor cat: Tailored for cats that live indoors, covering conditions relevant to their lifestyle. 

How to choose the best pet insurance for your budget 

When choosing a pet insurance policy, it’s important to assess your financial situation and coverage needs. Here are key factors to consider: 

  • Budget: Determine how much you can afford in monthly premiums. Lower premiums often mean higher out-of-pocket expenses when it comes to making claims. 
  • Coverage limits: Some policies offer higher limits, covering more complex conditions, but come with increased premiums. 
  • Excess and benefit percentage: Understand how much you’ll need to pay before the insurance kicks in and what percentage of the vet bill will be reimbursed after paying any excess. 
  • Waiting periods: Policies usually have waiting periods before coverage starts, so check for these details. 
  • Additional coverage: Depending on your pet’s needs, look for extra policy options, such as dental coverage or therapy treatments such as hydrotherapy. 

What pet insurance covers 

Pet insurance coverage can vary depending on the provider and policy, but common areas of coverage include: 

  • Accidents: Coverage for injuries resulting from accidents. 
  • Illnesses: Coverage for a wide range of illnesses, from infections to chronic conditions. 
  • Surgery: Costs related to necessary surgical procedures. 
  • Medication: Coverage for prescription medications. 
  • Diagnostic tests: Expenses for X-rays, blood tests, urine tests and advanced imaging such as MRIs. 
  • Emergency care: Coverage for urgent or intensive care veterinary treatments. 
  • Specialist care: Costs associated with seeing a veterinary specialist, such as an ophthalmologist, neurologist etc. 

Pre-existing conditions and exclusions 

A pre-existing condition is any health issue your pet has been treated for or shown signs of before the policy begins or during the waiting period. Most insurers, including PetSure, don’t cover pre-existing conditions unless they can be classified as temporary. Some insurers may review temporary conditions after a set period (up to 18 months), if they haven’t recurred during that period. Common pre-existing conditions may include: 

  • Cruciate ligament injuries 
  • Intervertebral disc disease 
  • Hip dysplasia 

Make sure to carefully read the policy’s Product Disclosure Statement (PDS) to understand how pre-existing conditions are treated and what exclusions apply. 

Common exclusions 

In addition to pre-existing conditions, pet insurance policies typically exclude the following: 

  • Routine and preventative care: Vaccinations, preventative flea and worm treatments, and routine check-ups are often excluded unless you purchase additional coverage. 
  • Hereditary and congenital conditions: Some policies exclude conditions linked to your pet’s breed. 
  • Elective procedures: Cosmetic surgeries are usually not covered. 

Comparing pet insurance policies 

Finding the right pet insurance requires careful comparison. Here’s how to get started: 

  • Research providers: Explore different insurers, review their policies, and read customer reviews. 
  • Customisable plans: Some insurers allow you to adjust the excess and benefit percentage to fit your budget and needs. 
  • Read the fine print: Understand terms, exclusions, and conditions for each policy you research. 
  • Check for discounts: Some providers offer discounts for insuring multiple pets or paying annually. 
  • Customer service and claims: Consider the insurer’s reputation for customer service and the simplicity of the claims process. 

Additional services: GapOnly® and VetChat™ 

Some pet insurance providers offer additional services that enhance the value of your policy: 

  • GapOnly®: This service simplifies the claims process by allowing you to pay only the gap (the difference between the vet’s bill and the insurance payout), while you’re still at the vet clinic. This means you avoid paying the full bill upfront and waiting for reimbursement. 
  • VetChat™: Provides 24/7 access to Australian veterinarians via video or online chat, helping you make informed decisions about your pet’s health, especially in non-emergency situations. 

Choosing the right pet insurance policy can seem overwhelming, but by carefully considering your pet’s needs and your own budget, you can find coverage that provides peace of mind. As veterinary care costs continue to rise, having insurance can make a significant difference in ensuring your pet receives the care they deserve without financial strain. 

Sources

1 Pet Food Industry 2023, ‘National survey reveals Australians’ spending on pets’, Pet Food News, https://www.petfoodindustry.com/news-newsletters/pet-food-news/article/15469415/national-survey-reveals-australians-spending-on-pets#:~:text=From%202020%20to%202022%2C%20Australia’s,or%2069%25%20of%20Australian%20households.  

2 Global Pet Industry 2024, ‘Country report: Australia zooming in on pet ownership boom’, Global Pet Industry, https://globalpetindustry.com/article/country-report-australia-zooming-boom-pet-ownership.  

Australian Dog Lover 2024, ‘Pet owners slashing veterinary care in cost-cutting measures’, Australian Dog Lover, https://www.australiandoglover.com/2024/05/pet-owners-slashing-veterinary-care-in.html 

PetSure, https://petsure.com.au/media-releases/economic-euthanasia-pet-healthcare-costs-3000-tipping-point/.  

PetSure 2024, Human vs. Pet Healthcare Comparison, https://petsure.com.au/knowledge-hub/human-vs-pet-healthcare-comparison/.  

PetSure 2024, Pet Health Insights from Vets in the Field, https://petsure.com.au/knowledge-hub/pet-health-insights-from-vets-in-the-field/.  

Australian Institute of Health and Welfare 2024, Australia’s Health 2024, AIHW, Canberra, https://www.aihw.gov.au  

https://www.petfoodindustry.com/news-newsletters/pet-food-news/article/15469415/national-survey-reveals-australians-spending-on-pets

PetSure 2024, Economic Euthanasia: Pet healthcare costs reach $3,000 tipping point, media release, https://petsure.com.au/media-releases/economic-euthanasia-pet-healthcare-costs-3000-tipping-point/  

GapOnly 2024, GapOnly: Streamlining pet insurance claims, https://gaponly.com.au   

VetChat 2024, VetChat: Online Veterinary Consultations, https://www.vetchat.com.au   

Bow Wow Meow 2024, Bow Wow Meow: Pet Insurance & Products,  https://bowwowmeow.com.au   

Insurance products are issued by The Hollard Insurance Company Pty Ltd ABN 78 090 584 473, AFSL 241436 (Hollard) and/or PetSure (Australia) Pty Ltd ABN 95 075 949 923, AFSL 420183 (PetSure) (from 8th May 2023 only), administered by PetSure and promoted and distributed through their authorised representatives and distribution partners. Any advice provided is general only and does not take into account your individual objectives, financial situation or needs. Cover is subject to the policy terms and conditions. You should consider the relevant Product Disclosure Statement (PDS) to decide if a product is right for you. PDS and Target Market Determination are available from the relevant partner’s website.              

Testimonials and customer experience may vary depending on individual circumstances. Claims are assessed subject to policy terms and conditions.  

Any advice provided is general only and does not take into account your individual objectives, financial situation or needs. Cover is subject to the policy terms and conditions. Please consider the Product Disclosure Statement (PDS) to ensure this product meets your needs before purchasing or choosing to continue with the product. PDS and Target Market Determination available on our partners’ websites. Meet our partners at petsure.com.au/partners. 

Pet insurance can help by covering a portion of the eligible vet bill if the unexpected happens. Because it is difficult to predict the costs of veterinary care, it can help to have measures in place to help prepare for the unexpected. Check out our partner network and explore our policy tools to find a pet insurance policy.

Not all conditions or items are covered by Pet Insurance. Refer to the applicable Product Disclosure Statement for information about coverage and exclusions.

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