Australians are renowned for their love of pets, a passion so profound that it now represents a significant part of national spending. According to a 2022 survey of pets and people, Australians spend over $33.2 billion annually to ensure their pets are healthy and happy1. This affection extends to 69% of Australian households, one of the highest rates globally, up from 61% pre-pandemic2. 

However, with the cost of living still high, many pet owners are making difficult decisions about their pets’ care. A recent survey we conducted in May 2024 for the launch of our PetSure Pet Health Monitor revealed that more than 50% of pet owners were changing their approach to caring for their pets ‘scaling back’ on regular check-ups and preventive care appointments3. 

In light of rising pet insurance premiums, it’s important to find the best coverage for your pet.

The importance of pet insurance in Australia 

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. Unlike human healthcare, veterinary care doesn’t receive government subsidies, so pet insurance can help provide a safety net.  

Types of pet insurance 

There are several types of pet insurance policies available in Australia, each offering various levels of coverage: 

Comprehensive Cover 

If you want to cover the broadest range of accidents and illnesses, comprehensive cover might be the right choice for you. You can keep your premiums lower by looking for excess options or keep your out of pockets lower when you make a claim by choosing a nil excess and high benefit rate, even if it means paying a higher insurance premium. 

Limited Cover 

If you prefer to pay a lower insurance premium, and can accept more exclusions and limits, limited cover could be a suitable option. 

If you choose limited cover, you can select from three options: 

  • Basic Care: This option offers a lower overall dollar limit per year and/or a lower dollar limit per condition. 
  • Extended Accident: Coverage is provided for a specific list of accidents and illnesses. 
  • Indoor Cat: Coverage focuses on a limited list of conditions relevant to cats that live indoors.

Finding the best pet insurance policy for your budget

When selecting a pet insurance policy, consider these key factors: 

  • Budget: Determine how much you can afford in monthly premiums. Lower-cost policies may have limited coverage or higher out-of-pocket expenses when claiming. 
  • Coverage limits: There are various limits available to cater for mildly complex to more complex conditions. Higher limits mean more coverage but can lead to higher premiums. 
  • Excess and benefit rate (% of vet costs reimbursed): Understand the out-of-pocket costs before the insurance kicks in and what percentage of the invoice you’ll be responsible for after paying any excess. 
  • Waiting periods: Be aware of any waiting periods before coverage can begin. 
  • Extra policy options: Depending on you and your pet’s needs, you can look out for additional coverage for items like dental conditions and therapies such as physio and treatments for behavioural conditions.  

What does pet insurance cover?

Pet insurance coverage can vary significantly, but areas of coverage may include: 

  • Accidents: Coverage for injuries resulting from accidents. 
  • Illnesses: Coverage for diseases, infections, and chronic conditions. 
  • Surgery: Costs for necessary surgical procedures. 
  • Medication: Coverage for prescription medications. 
  • Diagnostic tests: Costs for blood tests, X-rays, MRIs, and other diagnostic procedures. 
  • Emergency care: Coverage for emergency veterinary services. 
  • Specialist care: Costs for consultations and treatments with veterinary specialists. 

Does pet insurance cover pre-existing medical conditions? 

Firstly, what is a pre-existing condition? 

A pre-existing condition is any health issue (diagnosed or not) that your pet has shown signs of before you purchase a pet insurance policy (or within the waiting period for insurers). Generally, these conditions are not covered under the policy. 

Examples of pre-existing conditions for insurers like PetSure include (but are not limited to): 

  • Cruciate ligament conditions 
  • Intervertebral disc disease 
  • Hip dysplasia 

For some insurers, including PetSure, certain pre-existing conditions may be reviewed to see if they can be covered as temporary conditions. This means that if your pet has shown no signs, symptoms, or recurrence of the condition for a specific period (up to 18 months) before the claim treatment date, as certified by a vet, it may be covered. 

Examples of conditions that may be reviewed by insurers like PetSure include: 

  • Skin infections 
  • Ear infections 
  • Gastrointestinal issues 

Not all insurers consider temporary or cured pre-existing conditions, so it’s important to review the Product Disclosure Statement (PDS) before purchasing and understand the terms and conditions that apply. 

Other common exclusions 

    Common exclusions in pet insurance policies may include: 

    • Routine and preventative care: Vaccinations, flea control, and routine check-ups are often not covered unless specified or added as an optional add-on. 
    • Hereditary and congenital conditions: Some policies exclude these, especially if they are known risks for specific breeds. 
    • Elective procedures: Cosmetic surgeries or elective procedures are typically excluded. 

    How to compare pet insurance policies 

    To find the best pet insurance policy for your pet’s needs, consider the following steps: 

    • Research multiple providers: Explore various insurance providers, compare their offerings, and read reviews from other pet owners. 
    • Check for customisable plans: Some insurers allow you to choose your excess or benefit rate to fit your needs and budget. 
    • Understand the fine print: Carefully read policy documents to understand terms, conditions, and exclusions. 
    • Ask about discounts: Some insurers offer discounts for multiple pets, annual payment plans, or affiliations with specific organisations. 
    • Customer service and claims process: Consider the insurer’s reputation for customer service and the ease of the claims process. 

    Benefits of additional services: GapOnly® and VetChat™


    When choosing a pet insurance policy, it’s also worth considering additional services like GapOnly® and VetChat™, which can enhance the value and convenience of your coverage. 

    GapOnly® is a service that simplifies the claims process by allowing you to pay the gap (the difference between the vet’s invoice and your eligible pet insurance benefit) at the vet clinic. This means you don’t have to pay the full vet bill upfront and wait for reimbursement for eligible expenses, easing the financial burden and streamlining the process. 

    VetChat™ provides 24/7 access to qualified Australian veterinarians via online video or chat, helping you make informed decisions about your pet’s health. This service is especially valuable for urgent but non-critical situations where you’re unsure whether a vet visit is necessary. 

    Navigating the world of pet insurance can be daunting, but with careful consideration and research, you can find a policy that provides the right coverage for your pet within your budget.

    As premiums rise, it’s important to plan your budget considering the care your pet needs.

    Sources

    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. 

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

    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 2024, Human vs. Pet Healthcare Comparison, viewed 29 July 2024, https://petsure.com.au/knowledge-hub/human-vs-pet-healthcare-comparison/. 

    PetSure 2024, Pet Health Insights from Vets in the Field, viewed 29 July 2024, 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, viewed 29 July 2024, 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  

    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.

    Looking for pet insurance? Compare brands and products here.