We get it – pet insurance isn't cheap. Why pay $50 to $100 a month for something you’re not even sure you’ll use? It’s a fair question, but also one that ignores the unpredictability of life – and of our furry friends. That $50 soon becomes worth it when you consider that a trip to the vet could cost you $13,000 – or the life of your best mate.
When is pet insurance worth it?
Worth it
Probably not worth it
Pets under the age of 9
Purebreds (they're more pre-disposed to congenital conditions)
If you can’t afford a huge unexpected bill
If you’ve got an adventurous pet that ventures outdoors
If your pet is like your child
Pets over the age of 9 years (unless you can get a specific senior pet policy)
You can’t put a price on the peace of mind that comes from knowing you will never have to choose between your furry friend and your financial security, but that’s not the only advantage of obtaining pet insurance. Of course, there are a lot of expenses that aren't covered by insurance, so it's a good idea to understand exactly what you're getting into.
Pros
Cons
You could save thousands. A serious illness or injury can take a huge chunk out of your budget if you don't have pet insurance. Cruciate ligament damage, for example, is the most common reason why a dog may develop a lame hind leg, and the surgery for this can cost up to $8,500.
You'll probably have to pay up front. Although some vets agree to defer payment until your claim is finalised, it's more common that you will have to settle the full account up front. You may be required to provide evidence about the cause of your pet's condition, and this can also delay reimbursement.
You don't have to see your pet suffer. Many policies include cover for regular visits to the vet. This means that you can go to the vet if you think something is wrong, instead of hoping that everything will sort itself out.
Exclusions will always apply. Any pre-existing condition your pet might have suffered from prior to being insured is unlikely to be covered. The fine print varies from policy to policy, so be sure to check the product disclosure statement (PDS), but the definition often extends to any condition your pet has ever been treated for.
Your pet will be in good hands if you're unwell. Many policies include cover for emergency boarding if you are hospitalised and there is nobody to look after your pet.
You can only claim a certain percentage back. Reimbursement is often on a co-payment structure, meaning you are responsible for about 20% of treatment costs on average and the insurer pays the rest. Some insurers do offer a 100% refund, but this tends to expire after your pet reaches a certain age.
You usually won't get a full refund. Reimbursement is often on a co-payment structure, meaning you are responsible for about 20% of treatment costs on average and the insurer pays the rest. Some insurers do offer a 100% refund, but this tends to expire after your pet reaches a certain age.
Older pets can be hard to insure. It's best to insure your pets earlier rather than later because most insurers stipulate a maximum age for a new policy (usually 9 years). There are some policies that cover senior pets, but they're rare. Another benefit of getting in early is that you're less likely to have claims refused on the basis of pre-existing conditions.
Is pet insurance worth it in the long run?
The most efficient way to find the best cover for your needs is to start with a general overview and narrow down your options. Then read independent reviews of the policies you’ve shortlisted. Avoid glazing over from information overload by making notes of which specific features are important to you, and learn what to look for in a policy.
Chances are, you will probably need to pay for major veterinary treatment for your pet at some point. Even if you don’t, choosing a policy that covers regular check-ups in addition to unexpected health problems means you will receive guaranteed value for your premiums.
Ultimately, the decision about whether pet insurance is worth it is a very personal one. Domestic animals are not cheap to look after and pet insurance can be a good way to mitigate your expenses over the lifetime of your furry friend.
Should I just set up a savings account?
One alternative to pet insurance is to set up an emergency fund to cover any unexpected vet bills. By opening a high-interest savings account and regularly setting aside a small portion of your pay each week, you could potentially build a balance big enough to pay for your pet’s treatment if it gets sick or suffers an injury.
But what happens if your buddy suddenly gets sick just 2 months after you started the account? Even allergy treatment has set some people back as much as $2,500. What about if your pet has an illness that needs to be treated on an ongoing basis? Regular treatments could quickly drain whatever money you had saved.
Bow Wow Meow Pet Insurance broke down some of its claims data and found that half of common vet costs could reach more than $1,000 a pop. A handful cost more than $2,000 on average. Some individual claims went well outside the average, costing $5,000 or more for some treatments, all the way up to $13,000. Could you afford to fork that kind of money out suddenly?
When should you set up a savings account to cover your pet’s vet bills?
If your pet is too old to qualify for accident and illness cover (new policies are usually only offered to pets under 8 or 9 years of age)
If your pet suffers from pre-existing conditions that won’t be covered by your pet insurance policy
If you’re struggling to find an insurer willing to cover your pet
When should you consider buying pet insurance?
For many other owners, it could be worth factoring pet insurance into the cost of pet ownership. There are several situations when pet insurance could be worth it, including the following:
If you live in a tick-prone area and your pet spends a lot of time outdoors (treatment for tick paralysis can be very expensive if not covered by your insurance)
If you own a breed of dog or cat that is prone to suffering from potentially expensive health conditions
If you want to avoid the heartbreaking decision of having your pet put down because you can’t afford treatment
The cost of pet insurance vs the cost of a vet visit
Many first-time pet owners are shocked to find just how expensive vet bills can be, even for something relatively straightforward like a fractured leg. The simple truth is that there’s no such thing as Medicare for pets, so it’s up to owners to cover the full cost of treatment.
A finder.com.au survey of 2,033 Australian pet owners revealed that the average dog owner is willing to spend up to $4,128 on their dog in one vet visit to ensure that their pet doesn’t have to be put down. On the other hand, the average cat owner was happy to fork out $2,127 – $2,001 less than their dog-loving counterparts.
Taking these figures into account, does it work out cheaper to pay for pet insurance or does the cost of premiums outweigh the benefits your policy provides?
It depends. Not only does the cost of cover vary between insurers, but so does the level of cover provided. Your veterinary bills can also vary greatly depending on the illness or injury your pet suffers, so it’s impossible to say for certain whether cover will work out to be worth the expense.
The cost of pet insurance
Policy
Cost per week
Cost per month
Cost per year
Cost of cover over 5 years
Cost of cover over 10 years
Accident-only cover
$4.62
$20
$240
$1,200
$2,400
Accident and illness cover
$8.08 - $12.69
$35 - $55
$420 - $660
$2,100 - $3,300
$4,200 - $6,600
Accident and illness cover plus routine and preventative care
$13.85+
$60+
$720+
$3,600+
$7,200+
How much would pet insurance cover for common vet bills?
Most pet insurance policies are designed to cover a portion of your vet bills, usually between 75% and 85% per claim. Let’s take a look at how much pet insurance could cover and how much you would have to pay out of your own pocket for a range of common health conditions.
Illness or injury
Total cost of treatment
Amount covered by pet insurance (80% of bill)
Remaining amount you would need to pay
Cruciate ligament surgery
$2,500
$2,000
$500
Vomiting/diarrhoea
$200 - $3,000
$160 - $2,400
$40 - $600
Tick paralysis
$5,000
$4,000
$1,000
Snake bite
$2,000
$1,600
$400
Bone fractures
$2,500
$2,000
$500
Ingesting a foreign body
$2,000
$1,600
$400
Cancer
$2,000
$1,600
$400
*Disclaimer: Please note that the costs quoted in the above table are guides only. Costs can vary greatly based on the severity of your pet’s condition, the treatment it requires and the fees charged by your vet – for example, while the cost quoted for snake bite is $2,000, treatment could cost upwards of $20,000 in severe cases.
It’s also important to be aware that annual benefit limits apply to your policy. These limits vary depending on the type and level of cover you select, but they usually range from $10,000 to $15,000. So if your policy has already covered one expensive vet bill during the period of insurance, it may not provide sufficient protection to help pay your bill if your pet suffers another serious injury or illness in the same year.
Are some breeds more likely to need pet insurance cover?
If your cat loves getting up to mischief or your dog seems especially accident-prone, you may see pet insurance as an essential consideration for your pet. However, there are also some specific breeds of dogs and cats that have a higher risk of certain health conditions and therefore may benefit more from pet insurance cover.
These include the following:
Short-nosed (brachycephalic) dog breeds such as Bulldogs and Pugs are prone to breathing and digestive problems
Labradors can be prone to hip dysplasia
Persian cats can contract polycystic kidney disease
Maine Coons can be prone to heart disease
Pedigree cats and dogs are more likely to suffer from specific health problems
However, be aware that some insurers will simply refuse to cover specific breeds, and if cover is available, your pet’s breed may result in higher premiums.
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Questions to ask yourself when considering if pet insurance is right for you
If your pet is a purebred, you'll probably need pet insurance. If you've got a lovable mutt, it's more likely to be healthier, so you might be able to get away with no cover.
The same selective breeding that gives purebred pets their refined features is also what makes many of them more susceptible to certain illnesses. For example, a French Bulldog is prone to breathing problems, hip dysplasia, allergies and disc disease. Siamese cats have a higher tendency to develop heart problems and certain types of cancer.
If you have a purebred pet, pet insurance can remove the worry of getting hit with a large unexpected vet bill if one of these illnesses shows up in your furry friend. It can also help pay for routine treatment that might help you avoid larger issues later in the pet's life.
On the other hand, mixed breeds and mutts are more likely to avoid some of these unfortunate genetic traits. If you own one of these lovely souls, the value of pet insurance might not be as high for you.
If you've got a younger pet, definitely consider getting pet insurance as soon as possible before any health issues develop. Pet insurers won't cover pre-existing conditions, so the longer you wait, the more time you're allowing for conditions to show up. If you get your little buddy covered before these conditions show up, then you'll get the most bang for your buck. If you know you want insurance, then procrastinating could be your #1 enemy.
If your pet is older than 9 and you don't already have insurance, only one of our partner companies offers cover for illness – Guide Dogs. Most pet insurers only offer older pets an accident-only policy. Accident-only cover is cheaper than when you also cover illnesses, so it might be worth it for you. But you need to ask yourself how likely your pet is to get into an accident and whether you want to attempt rehabilitation on a pet that old.
So many people have pet insurance horror stories because they don't fully understand what's covered and what's not. In your policy papers, they'll list a bunch of exclusions – make sure you read these.
One big exclusion is pre-existing conditions. If your pet wasn't covered at the time the condition appeared, you won't be able to cover them for that condition. That's not news to many people, but what really catches them off-guard is what exactly can be considered a pre-existing condition. For example, if your pooch was treated for arthritis in its left knee prior to taking out the policy, it probably won't be covered for arthritis at all - even if it shows up in the right hip next time.
One way to avoid this is to get your 4-legged friend covered before any conditions show up. Then it's covered no matter what. On the flipside, the value of pet insurance just might not be there for you if your pet already has pre-existing conditions, unless you want to cover them for accidents.
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To make sure you get accurate and helpful information, this guide has been edited by David Gregory as part of our fact-checking process.
Alexandra Koster was Finder's publisher for car, home and pet insurance. She has a Tier 1 certification in General Insurance, as well as a Bachelor of Arts in Film and Cultural Studies from the University of Sydney. Her hobbies include reading Product Disclosure Statements and deciphering complicated insurance lingo to help people save on their insurance so that they can spend their money on better things – like dogs. See full bio
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