What to look for and how to compare your options.

The pet insurance market is now broader than ever. There are a lot of options available, and the detail can be difficult to compare.   

With different levels of cover available, choosing the right policy comes down to understanding your pet’s needs and what you are comfortable paying over time. 

This guide breaks down the key things to consider so you can make a more informed decision. 

Why pet insurance matters 

Veterinary care continues to advance, with more treatment options available than ever. But with that innovation comes an increase in cost, especially for surgery, diagnostics or ongoing conditions.  

Pet insurance is one way to manage those unexpected expenses. It can help cover a portion of eligible costs so decisions about care are not based on finances alone. And it pays to look at any included benefits, which can swing the pendulum greatly depending on your situation. 

Types of pet insurance cover 

Most policies fall into two broad categories. 

Comprehensive cover 

Comprehensive policies usually include both accidents and illnesses. This can cover a wide range of treatments, from injuries through to more complex or ongoing conditions.  

Premiums are generally higher, but you may have options to adjust your excess or benefit percentage to suit your budget. 

Limited cover 

Limited cover can be a more affordable option but comes with more restrictions. 

This may include: 

  • Accident-only cover 
  • Capped benefits per condition or per year 
  • Policies designed for specific situations, such as indoor cats 

Lower premiums can mean higher out-of-pocket costs when you claim.  

What pet insurance can cover 

Coverage varies between policies, but commonly includes: 

  • Accidents and injuries 
  • Illnesses 
  • Surgery 
  • Prescription medication 
  • Diagnostic tests such as X-rays or blood tests 
  • Emergency care 
  • Specialist treatment 

The detail matters. Always check what’s included in the Product Disclosure Statement so you know exactly what you’ll be getting before making a decision.  

What is usually not covered 

Pet insurance is generally designed for unexpected events, not routine care. 

Common exclusions include: 

  • Vaccinations and routine check-ups 
  • Flea and worm treatments 
  • Grooming 
  • Elective procedures 

Pre-existing conditions are also typically excluded. This includes any condition your pet has shown signs of before the policy starts or during the waiting period.  

Some policies may review temporary conditions after a set period if they have not recurred. 

How to choose a policy that fits 

There is no single “best” policy; only the best policy for you. The right choice depends on your pet and your circumstances. 

Start with your budget 

Think about what you are comfortable paying regularly, as well as what you could manage if a large vet bill came up. 

Lower premiums often mean higher costs at claim time. Higher premiums may reduce your out-of-pocket costs later. 

Look at coverage limits 

Some policies offer higher annual limits or broader coverage, which can be helpful for more complex conditions. These usually come with higher premiums. 

Understand excess and benefit percentage 

When you make an insurance claim, any contribution to that payment you make out of pocket is called an excess. There are two types of excess:  

  • An annual excess is a set amount you pay once per policy year, no matter how many claims or conditions you claim for during that year. This option can suit customers who want more predictable out-of-pocket costs, especially if their pet may need treatment for multiple or ongoing issues within the same year. 
  • A per-condition excess is paid once per condition, per policy year, the first time you claim for that condition. This can work well for customers who expect infrequent or one-off claims, or claims related to the same condition, but costs can add up if a pet develops several unrelated conditions in the same year. 

For example, if your annual excess is $200, you’ll pay $200 once that year, even if you make three claims in that time. 

With a per-condition excess of $200, you’d pay $200 for a claim for a broken leg, $200 for an ear infection claim etc. 

The benefit percentage is the portion of the bill that your insurance policy covers, and may be reimbursed after the excess is paid. 

Understanding how these work together gives you a clearer picture of what you might pay in a real scenario. 

Check waiting periods 

Most policies have waiting periods before certain conditions are covered. These can vary depending on the insurer and the type of condition.  

Consider your pet’s breed and lifestyle 

Some breeds are more prone to certain health conditions. Cruciate ligament conditions are more common in Rottweiliers and Golden Retrievers, for instance, while brachycephalic dogs such as French Bulldogs and Pugs are affected by significant health challenges surrounding their breathing. Making sure your policy aligns with those risks can help avoid gaps in cover.  

What are benefit limits and sublimits? 

Insurance policies have annual benefit limits, a maximum amount you can claim against your insurance in a policy period (usually 12 months). Generally, these annual limits are $10,000 or more and reset on renewal, but check the Product Disclosure Statement of the product you’re considering to be sure. 

A glance at the top 10 conditions affecting dogs and cats in 2025* shows how quickly the cost of treatment could add up to hit a lower benefit limit: 

DOGS 

Condition – Average cost for treatment 

  1. Skin infections/allergies – $667 
  1. Gastrointestinal conditions – $874 
  1. Ear infections – $439 
  1. Wounds from traumatic injuries – $836 
  1. Mass lesions – $961 
  1. Eye conditions – $468 
  1. Osteoarthritis – $823 
  1. Musculoskeletal conditions – $607 
  1. Anal sac disorders – $316 
  1. Dental conditions $816 

CATS 

Condition – Average cost for treatment 

  1. Gastrointestinal conditions – $903 
  1. Urinary tract disorder – $1,459 
  1. Skin infections/allergies – $470 
  1. Fight or bite wounds – $620 
  1. Eye conditions – $424 
  1. Behavioural problems – $141 
  1. Ear infections – $422 
  1. Osteoarthritis – $779 
  1. Heart murmurs – $1,569 
  1. Mass lesions – $1,486 

Many policies also include sublimits for specific (often high-risk or high-cost) conditions. For example, while you might have a $10,000 annual benefit limit, you may only have $1,500 for tick paralysis, hip dysplasia or dental illness.  

These smaller caps inside your annual limit should be considered based on the risks your pet’s breed faces. Your insurer may also require proof of due care when making a claim on these high-cost treatments – if you’re making a claim for tick paralysis, you may need to show you’ve taken adequate tick prevention measures for your pet, for instance. 

Sublimits are in place to keep premiums more affordable across the board and balance coverage across many types of conditions. As always, check the Product Disclosure Statement of the product you’re considering to understand any included sublimits. 

Comparing your options 

When reviewing policies, take the time to look beyond the headline price. 

  • Read the Product Disclosure Statement carefully 
  • Compare inclusions and exclusions 
  • Check how claims are processed 
  • Look at how flexible the policy is if your needs change 

Consider the extras 

Some pet insurance provides offer additional services that enhance the value of your policy. 

A GapOnly®-ready policy includes access to the GapOnly® service at no additional cost. GapOnly® assesses and processes eligible claims within minutes while you’re still at the vet. All you need to do is pay the remaining amount – the gap – and you’re good to go. 

By processing claims in real-time, GapOnly® significantly reduces the upfront costs for pet carers. There’s no need to contact your insurer, complete claim forms or upload invoices. And GapOnly® is available at nearly 1,800 participating vet clinics around Australia. 

Additionally, many GapOnly®-ready policies include LiveVet access. This 24/7 telehealth service allows you to talk to Australian veterinarians via video or online chat whenever and wherever you need at no additional cost. These calls, while not replacing a traditional vet visit, can help you make informed decisions about your pet’s health, especially in non-emergency situations. 

A practical approach 

It is easy to focus on price alone, but value comes from how well a policy fits your pet and your situation. 

Taking time to compare options, understand the detail and think through real scenarios can help you choose with more confidence. 

Focus on what matters for your pet, understand how the policy works in practice and choose an option that fits your budget and expectations. In doing so, you’re also choosing a happier, healthier future for your furry friend. 

*According to PetSure 2025 claims data. 

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