Pets are full of surprises. Sometimes, those surprises can be unexpected health scares, which is why it’s always a good idea to plan ahead and get your furry friends covered with pet insurance.
There are lots of different plans to choose from, each catering to different pet needs and budgets. Understanding the costs that come with pet insurance will ensure you’re prepared for any health-related mishaps and the subsequent payout.
We’ve crafted this must-read guide for pet owners seeking to cover their furry friends. We not only share the average cost of pet insurance, but also break down the different types of cover options, explain types of payouts, reveal what affects premiums, and loads more!
Read this comprehensive guide to learn everything you need to know about pet insurance in Australia.
Average Cost of Pet Insurance in Australia
Pet insurance prices can vary between different pet insurance companies, the type of cover you choose, and the pet you’re covering. In general, you can expect to pay between $60 to $120 each month on pet insurance. It’s important to recognise that the cost of pet insurance can actually save you money down the line on vet bills, making it a worthwhile investment.
Vet bills can knock you back about $450 each year, making the monthly fee of insurance premiums a small price to pay in comparison!
Types of Pet Insurance Cover
There are four main pet insurance options to choose from, each offering its own set of coverage.
Some offer the full package, covering every type of health issue and accidental injury, whereas others equip you with more basic coverage, focusing on just the emergency mishaps and specific conditions. It’s super important to understand what each type of cover provides to find the right match for your pet.
Here’s an overview of the different options you can get for your four-legged friend:
Comprehensive Cover
Comprehensive pet insurance is the highest cover option out there. It offers benefits for a wide range of eligible vet bills and health conditions, including cancer, broken or fractured bones, wounds, tendon or ligament injuries, and so forth.
If you want to be extra safe and prepared for anything your pet’s health may throw at you, comprehensive pet insurance is the perfect option!
Accident and Illness Cover
Accident and illness cover reimburses a portion of treatment costs for accidental injuries, like wounds, swallowed objects, snake bites, and broken or fractured bones. It also covers treatment costs for certain illnesses, such as arthritis and gastrointestinal complications.
This coverage is superb for clumsy pets and animals that are prone to certain illnesses and chronic conditions. However, if your fur baby has any pre-existing illnesses, they won’t get covered by this plan.
Accident-Only Cover
Accident-only cover is the most basic option out there. This covers a portion of vet bills for any sudden accidents that your pet may experience, like burns, fractured bones, bite wounds, or one-off allergic reactions.
This cover is ideal for pet owners who have low-risk and trustworthy pets. But, if your furry friend is adventurous and often runs into trouble or is prone to health problems, you’ll likely need a more protective plan, such as comprehensive cover or accident and illness cover.
Optional Cover
Many providers offer optional cover options, also known as pet wellness cover, which give you added benefits and coverage. This can include dental care, de-sexing, worming, microchipping, flea and tick treatment, vaccinations, and so forth.
Optional cover is especially great for new pet parents with kittens and puppies who need regular vet visits during their early days. It’s equally great for older pets that need routine check-ups.
Understanding Pet Payouts, Costs and Limits
Pet insurance comes with different payouts, costs, and limits, which can make things confusing and often lead to unwanted surprises. To keep everything simple and easy to understand, we’ve listed every type of payout and cost that you’ll likely see on your insurance plan.
Premium Costs
Premiums are the monthly or annual cost of pet insurance. The premiums you pay depend on the type of coverage level you choose and your pet, such as their species, breed, and age.
Comprehensive plans tend to present higher premiums because they offer a higher benefit percentage and lower excess, whereas more basic plans, like accident-only cover, tend to have lower premiums.
Policy Excess Payments
When you make a claim on your pet insurance policy, you’ll need to pay a fixed amount, known as policy excess. This means you’ll cover a specific fraction of the vet bill before your provider pays off the rest. Policy excess can be payable per claim, condition, or as an annual sum, but this depends on your provider’s policy.
Co-Payments
Co-payments are the amount of the vet bill that you pay after the benefit percentage has been applied. For example, if your policy covers 80% of vet bills, you’ll be asked to pay the remaining 20%. This essentially means you share some of the vet bills with your insurer.
Benefit Percentage
The benefit percentage is the amount of reimbursement you can get from eligible vet bills. In many cases, you’ll have to pay the vet expenses upfront and then make a claim to get back a percentage of the costs. If your provider has a higher benefit percentage, you’ll have less of an out-of-pocket payment.
Annual Benefit Limits
Annual benefit limits are the maximum amount you can claim within a policy year.
If you reach your provider’s annual benefit limit, you’ll have to cover costs out of your own pocket without making a claim, so it’s important to keep track of the claims you make and choose wisely when making a claim. In most scenarios, the higher the annual benefit limit, the greater the premium you pay.
Sub-Limits
Sub-limits cap the amount you can claim for a specific condition or treatment, such as tick paralysis or dental procedures. Sub-limits are set by insurance providers and still apply even if you haven’t hit your annual benefit limit.
What Affects Pet Insurance Premiums?
Pet insurance companies calculate their premiums based on lots of different factors, such as what pet you have, your pet’s overall health, and your choice of coverage. By understanding what can determine and change the cost of your pet’s insurance, you can make a more informed choice.
Here’s a closer look at the most common factors that impact pet insurance premiums:
- Your Pet’s Age: As your pet gets older, pet insurance premiums increase.
- Type of Pet and Breed: Certain species and breeds are more prone to specific health problems, which can impact the overall cost of your premiums.
- Pre-Existing Conditions: If your pet has any pre-existing health problems, pet insurance costs will likely be higher due to the likelihood of treatment.
- Where You Live: Vet costs vary depending on region, which can affect insurance premiums.
- Annual Claim Limits: Higher claim limits can equate to higher premiums.
- Policy Excess: If you go for a bigger excess, your monthly premium will likely be cheaper.
- How Many Pets You Add: Adding more pets to a policy will likely incur higher premiums because there’s a higher potential for claims.
- The Insurer You Choose: Different pet insurance companies have their own pricing structures, coverage options, and even deals, which impact premiums.
Why You Should Cover Your Pets
Getting your pets covered with insurance is the smartest and most responsible thing you can do as a pet owner, for your furry friends and for yourself.
It ensures you’re financially covered against unexpected vet bills while ensuring your pet gets the help they need without breaking the bank. Pet insurance gives you the confidence to enjoy peace of mind, knowing your four-legged pals are covered for whatever mishaps they run into.
Top Tips for Finding a Pet Insurance Plan
Finding the right pet insurance cover can be tricky, especially with so many providers out there. But, there are lots of handy ways to find the exact plan your pet needs!
To help you find the perfect insurance plan for your fur baby, we’ve gathered these super helpful top tips:
- Always Compare Costs and Coverage: Different pet insurance providers have their own pricing, so it’s super important to always compare premiums and coverage before committing to a policy. This ensures you find the best possible price for the plan that your pet needs.
- Double Check Pet Insurance Policies: It’s super important to carefully check what’s included in your chosen plan to ensure all your pet’s needs are fully covered.
- Cover Your Pets Early: Don’t wait until something happens to cover your pet; make sure you get them covered as soon as possible. This will prevent exclusions for pre-existing health conditions and ensure your fur kids are protected from the very start.
- Look for Routine Care Cover: Some pet insurance providers offer extra routine care cover, also known as wellness cover. This means you can get more coverage, such as dental care, vaccinations, and check-ups.
- Review Reimbursement and Claim Limits: Pet insurers cover a specific percentage of vet bills, but there are limits to how much you can claim. You must always check the claim limits to see how much reimbursement you’re entitled to.
- Check Exclusions: Different pet insurance products might exclude certain treatments or health conditions, such as pregnancy, pre-existing illnesses, and transplants, so it’s essential to check what’s not covered.
Protect Your Pet With Our Multi-Award Winning Pet Insurance!
Pets On Me is Australia’s leading pet insurance provider that delivers worry-free pet care for dogs and cats. We know how important it is to ensure your four-legged friends are fully covered, which is why we offer a variety of hassle-free plans, all of which offer quick and simple claims, reliable cover for life, and no lock-in contracts.
Claim up to 80% of eligible vet bills with any registered vet in Australia, and enjoy peace of mind knowing your pet’s health is always covered.
Explore our award-winning plans and join our pack of happy pet parents and healthy fur kids!