The lowdown on pet insurance

Last updated on February 20th, 2025

Pet insurance, much like private health insurance, acts as a safety net – providing financial protection in case your furry friend faces unexpected health issues.

Just as you would carefully evaluate health insurance for yourself, it's important to review the coverage options offered by different pet insurance providers and choose one that suits your pet’s needs and your budget.

The number of Australians taking out pet insurance has fallen over the past few years, with many citing affordability as a key concern. Only you can decide whether pet insurance is worth the money, but there are some key considerations before you take the leap.

What type of insurance should I get?

This depends on your budget, as well as the age and general health of your pet. Comprehensive insurance gives you better cover, generally up to $20,000 a year, while most basic policies will cover about half that amount and will have a limit on refunds per condition. There is also great variation in premiums, so it is worth doing some digging.

 

 

One of the quickest ways to get a snapshot of different policies is to use a comparison site, which will give you a rough breakdown of the cost and what’s covered in easy-to-read tables. You will still need to get an accurate quote from the insurance company. And be prepared for the multiple emails, texts or phone calls that will follow from companies trying to sell you their policies.

Here are some important items to consider when doing your research.

Annual benefit limit

Just like our health insurance, pet insurance has annual caps, which can range anywhere from $3000 to $30,000. The average cost of veterinary care can be high, so it's helpful to have a plan in place for unexpected events. It's also worth noting that some breeds are more prone to expensive ailments, so this could determine which policy you choose.

Benefit percentage

This is the percentage of cover that the insurance company will pay for each incident or illness. So, for example, if you have a policy with 80 percent coverage, and your pet needs surgery, the insurance company would pay 80 percent of the cost of that surgery. With many insurers this amount drops as your pet ages, so be sure to check the fine details.

 

 

Dental cover

It's important to consider the type of animal, their age and activity level, as well as how much care they'll receive. If you have a cat that spends most of its time indoors, dental insurance may not be necessary. But for a dog who goes on walks or runs around outside, this could be very helpful. Get some advice from your vet.

Excess or gap

Pet insurance policies can have either a fixed excess or a percentage excess. If you are making a pet insurance claim for $100 and your policy has a 10 percent excess, you will have to pay $10 and the insurer will pay $90. A fixed excess is usually lower, say $50. This means that you will have to pay at least $50 towards any claim. Some policies also have an age excess which means that you pay more if your pet is over a certain age.

Other points for consideration

Discounts for multiple pets

Some insurers, including Budget Direct, Bow Wow Meow and RSPCA, will offer a discount for multiple pets. Check with the insurance company to find out if any discount outweighs exclusions or other limits.

 

 

Wrapping with other insurance

Some health, home, contents and even car insurance providers offer pet insurance as an extra. However, it's important to read the fine print carefully before signing up for a combination policy. Although buying pet insurance separately might be more expensive, it may provide better coverage.

Getting the timing right

Some companies have an age range for when you can insure your pet, such as older than eight weeks and younger than nine years. Generally, younger pets are cheaper to insure because they have fewer health issues and accidents. You may find that the costs go up or cover goes down significantly once they develop some common ailments.

Changing insurers

Most pet insurance companies will allow you to switch policies or insurers without penalty as long as you have not made a claim and your pet is still in good health. Consider the age of your pet before changing. As soon as they hit their fourth birthday, the annual premium creeps up. After their ninth birthday, you may not be allowed to change. Check the fine print before signing up.

We invest a lot of love, time and money in our pets, so we deserve insurance that takes care of them and gives us peace of mind. If you have an issue with your pet insurer, lodge your complaint with us and we’ll help you handle it.