Pets are cherished members of our families, and ensuring their health and safety is a top priority. One way to safeguard their well-being is through pet insurance. Pet insurance can help cover a portion of eligible veterinary expenses, easing the financial burden if your furry family member faces unexpected illness or injury. However, understanding the various options and features can be a bit overwhelming. This guide is designed to simplify the process, helping you select a plan that best fits your pet’s needs and your budget.  

How pet insurance can help cover veterinary expenses 

Veterinary care, especially in cases of emergencies or serious illnesses, can quickly become expensive. Pet insurance provides a safety net by covering a portion of the costs, depending on the type of policy and specific plan features you choose. While many pet owners understand the value of pet insurance for unexpected events, it’s important to remember that it typically doesn’t cover routine care like flea treatments, vaccinations, or grooming. 

Pet insurance is primarily designed to assist with larger, unexpected veterinary bills, ensuring that you won’t need to make tough decisions based solely on financial constraints when your pet needs treatment. Depending on the plan, policies can reimburse you for a significant portion of the eligible expenses, allowing you to focus on your pet’s recovery rather than the costs. 

Why does your pet’s breed matter? 

An important factor in choosing the right pet insurance plan is your pet’s breed. Different breeds are prone to specific health conditions, making it essential to research the potential health risks and associated costs for your pet’s breed. For example, Golden Retrievers are likely to suffer from gastrointestinal issues, and the treatment costs can skyrocket. According to PetSure data, the highest cost for the treatment of gastrointestinal disease in 2023 was $26,654. 

When selecting a policy, it’s vital to ensure it covers the treatments your pet may require. Reading the Product Disclosure Statement (PDS) of your chosen policy is crucial, as some plans may impose sub-limits or exclusions on breed-specific conditions. Additionally, be prepared for insurance premiums to rise each year as your pet ages, as this will impact your budget. 

Types of pet insurance policies

There are three primary types of pet insurance policies: Accident-only, Accident and Illness, and Comprehensive. Each provides varying levels of coverage depending on your pet’s needs and your budget. 

Extended accident-insurance 

This policy covers veterinary costs if your pet is injured in an accident, such as car accidents or falls. Accident-only insurance tends to be the most affordable but offers limited coverage. If your pet is generally healthy and you take precautions, such as walking your dog on a leash or keeping your pet indoors, this might be a suitable option. However, it doesn’t cover illnesses, so it’s important to weigh the risks and benefits. Always review the PDS to understand exactly what is and isn’t covered. 

Basic care 

This type of insurance covers limited cover for accidents and illnesses. It typically reimburses a portion of eligible veterinary treatments for specified illness conditions only, namely vomiting, skin conditions, ear infections, patella luxations. For many pet owners, this is a good balance between coverage and cost. However, as with all policies, read the PDS to be clear on exclusions and sub-limits. 

Benefit Schedule 

This type of insurance provides limited cover for both specified accidental injuries and specified illness conditions, a table lists the maximum benefit amount payable for eligible veterinary expenses for each condition for the policy period, with a stated benefit percentage that typically ranges from 65-100%. 

Some providers may have optional or included benefits such as a dental benefit and non-insurance benefit routine care. 

Comprehensive Insurance 

Comprehensive insurance offers the highest level of coverage, including accidents, illnesses, some providers may have optional or included benefits such as a dental benefit, alternative/specialised therapies benefit and non-insurance benefit routine care. This is the costliest type of policy but provides peace of mind knowing that almost all your pet’s health needs are covered. Check the PDS carefully to understand what specific routine care and preventive treatments are included, as these can vary between providers. 

Key product features to consider 

When comparing pet insurance policies, there are several key features to keep in mind. These will affect both the cost of your premiums and the extent of your coverage. 

Annual benefit limit 

Most pet insurance policies have an annual benefit limit, which is the maximum amount you can claim within a 12-month period. Typically, these limits range from $10,000 to $20,000, but they can vary depending on the policy. It’s important to choose a plan with a limit that matches your potential veterinary expenses, especially if your pet’s breed is prone to high-cost treatments.

Sub-limits 

This is the maximum the insurer will pay for certain types of claims. For example, while a policy might have an overall annual limit of $10,000, a sub-limit of $1,500 for tick paralysis means that the policy will only cover up to $1,500 for tick paralysis treatment. 

Benefit percentage 

Policies typically reimburse up to 70%-90% of vet bills for eligible claims, with the remainder paid out-of-pocket. The benefit percentage is the portion of the veterinary bill that your insurance will reimburse, meaning you’ll pay the remaining percentage as an out-of-pocket expense. For example, if your policy covers 80% of eligible expenses and your vet bill is $1,000, you will pay $200, and your insurer will cover the remaining $800. 

Excess 

The ‘excess’ is an additional amount you can agree to pay out-of-pocket on claims. Excess often applies per condition, per policy period but there are different applications across policies and insurers. Higher excess generally means lower premiums, but higher out-of-pocket costs at the time of a claim. 

Value-added services

Some insurers offer value-added services that can enhance your overall experience. For example: 

*GapOnly® reduces the upfront cost of veterinary care by allowing you to only pay the gap (the difference between the vet’s invoice and the portion covered by insurance). 

Services like VetChat offer 24/7 access to registered Australian vets, providing valuable advice and triage without needing an in-person visit. 

Selecting the right pet insurance policy involves balancing your pet’s specific needs, your budget, and the level of coverage you feel comfortable with. Understanding the types of policies, product features, and the importance of your pet’s breed will help you make an informed decision that protects your pet’s health while giving you peace of mind.  

PetSure’s policy finder tool can help you understand different product types and features so you can find a policy that suits your pet’s needs. While GapOnly®’s comparison site can help you to compare a range of comprehensive policies*. 

Before settling on a policy, carefully read the PDS to understand the exclusions, sub-limits, and excess amounts. By doing so, you’ll be better prepared to navigate the financial side of pet care and provide your furry companion with the best possible support in times of need. 


*GapOnly® is a trademark owned by PetSure (Australia) Pty Ltd ABN 95 075 949 923, AFSL 420183. GapOnly® is available on eligible claims at participating vets with a pet insurance policy from a GapOnly® pet insurance partner.

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.


Sources

PetSure Brochure, What is pet insurance? 

PetSure, Understanding the rise in pet health costs, https://petsure.com.au/knowledge-hub/understanding-the-rise-in-pet-health-costs/

PetSure, Best pet insurance coverage Australia, https://petsure.com.au/knowledge-hub/best-pet-insurance-coverage-australia/

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.