Exploring payment options for pet healthcare costs 

We often prepare financially for unexpected events that might impact on our assets, such as our homes or cars.  

But what about our pets? If your furry family member suddenly falls ill or gets injured, have you considered the available options to cover their treatment costs? 

Understanding Treatment Costs for Common Pet Health Conditions 

Let’s look at typical treatment costs for common health conditions in both cats and dogs, based on PetSure claims data 2023*. 

For example, if you had an 8+ year-old cat suffering from a urinary tract disease, you’d likely need about three vet visits. The average total cost for treatment is $1,589. 

In another scenario: if you had a dog between the age of one and-eightthat experienced gastrointestinal disease. The average annual cost for treating this condition in 2023, was $812, according to PetSure claims data. 

What Are Your Options to Cover These Costs? 

Given the scenarios and costs mentioned above, let’s explore some options that can help cover your pet’s potential healthcare expenses.

1. Pet Insurance

Pet insurance can help ease the financial burden of vet bills if your pet falls ill or is injured unexpectedly. Policies cover a percentage of eligible vet bills, with varying annual claims limits, with some policies offering unlimited coverage. 

For instance, using the GapOnly® compare pet insurance page, you can locate a provider and generate a quote. Here’s an example of what you might expect for an annual premium: 

• Ragdoll Cat: A comprehensive accident and illness cover policy might cost around $27.88 per month or $334.56 annually. For a condition like urinary tract disease (average cost: $1,589), you would be reimbursed up to 80%, leaving you with an out-of-pocket expense of $317,80. Adding this to your annual premium, your total cost would be $652,36. 

• Cavoodle: The same comprehensive policy for a dog might be around $41.77 per month or $501.24 annually. If your dog had gastrointestinal disease (average cost: $812), your out-of-pocket expense would be $162,40. Combined with your annual premium, the total cost would be approximately $663,64. 

PetSure is the only pet insurance administrator in Australia offering GapOnly®, a payment solution that minimises upfront out-of-pocket expenses by allowing customers to simply pay the gap while still at the vet clinic^. 

2. Credit Card Payments 

Using a credit card is another option to cover vet expenses. Credit cards allow you to borrow money from the issuer, like a bank, to make purchases or transactions. 

According to the Reserve Bank of Australia (RBA), the typical annual interest rate on a credit card is 17.93%. Here’s how it might work in practice: 

• Ragdoll Cat: For a balance of $1,589 at 17.93% interest, if you made monthly payments of $146, you’d pay a total of $1,719ver 12 months, excluding any additional fees. 

• Cavoodle: For a balance of $812 at 17.93% interest, making $75monthly payments would result in a total repayment of $878 over a year, not including additional fees. 

3. Personal Loan 

A personal loan allows you to borrow a specific amount of money and repay it with interest over a set term. While interest rates vary, the RBA reported an average rate of 11.18% in August 2024. 

Using a similar calculation: 

• Ragdoll Cat: Borrowing $1,589 for 12 months at 11.18% interest would result in monthly payments of $151, totaling $1,807 over the year. 

• Cavoodle: For an $812 loan over 12 months at 11.18% interest, monthly payments would be $82, with a total repayment of $982. 

Keep in mind, personal loans may include application fees, which aren’t factored into these calculations. 

4. Savings or Transaction Account 

Opening a dedicated savings account for your pet’s medical expenses could be a viable alternative or addition to pet insurance. Regular contributions can ensure you have funds available when needed, but it’s important to stay disciplined and avoid dipping into these savings for other expenses. It’s also important to consider an emergency plan at the start of your saving journey to help in the case of an early unexpected accident or illness, if your savings account hasn’t yet accumulated sufficiently to cover these treatment expenses. 

As you plan for your pet’s healthcare, remember that ongoing care throughout their life is essential. Pets, like humans, can develop health issues at any age—young pets might face congenital / inherited conditions or be more accident prone, middle-aged pets could develop a chronic illness like diabetes, and older pets are more susceptible to conditions like arthritis and cancer. 

*PetSure Pet Health Monitor 2024 

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^The gap means the difference between the vet’s invoice and the eligible claim benefit under your policy. GapOnly® is a trademark owned by PetSure (Australia) Pty Ltd ABN 95 075 949 923, AFSL 420183 (PetSure).

Insurance products are issued by The Hollard Insurance Company Pty Ltd ABN 78 090 584 473, AFSL 241436 (Hollard) and/or PetSure (from 8 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. 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 gaponly.com.au/gaponly-insurance-partners.^>Policy Terms and Conditions, limits, waiting periods, exclusions and excesses apply.

Policy Terms and Conditions, limits, waiting periods, exclusions and excesses apply.

Sources

Based on a 32-year-old pet owner living in postcode 2099 with cover provided by PetSure’s direct brand petinsurance.com.au (Best in Show: Gold Cover) with a $250 excess. The quote generated was for a desexed three-year old female Ragdoll on 15 November 2023. These quotes are examples only. Actual prices and coverage will vary. You should consider the Product Disclosure Statement to determine which products are appropriate for you.  

Based on a 32-year-old pet owner living in postcode 2099 with cover provided by PetSure’s direct brand petinsurance.com.au (Best in Show: Gold Cover) with a $250 excess. The quote generated was for a desexed three-year old female Cavoodle on 15 November 2023. These quotes are examples only. Actual prices and coverage will vary. You should consider the Product Disclosure Statement to determine which products are appropriate for you.  

Financial year 2023 PetSure data. Average annual cost reflects the average cost across all vet visits.  

According to RBA data, the average credit card interest rate is 17.93% for the month ending August –  https://www.rba.gov.au/statistics/tables/  

Calculated using the MoneySmart credit card calculator:   

https://moneysmart.gov.au/credit-cards/credit-card-calculator

Calculated using the MoneySmart personal loan calculator:  

https://moneysmart.gov.au/loans/personal-loan-calculator

Reserve Bank of Australia, personal lending rates –   

total lending rates, personal credit, outstanding, fixed-term loans, August 2023  

According to Qrillpet.com.