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Pet costs climb as insurance premiums and vet bills bite harder
The costs of pet insurance and vet bills are rising, putting increased pressure on pet parents to prepare for rainy days.
18 July 2025
The costs of pet insurance and vet bills are rising, putting increased pressure on pet parents to prepare for rainy days.
New Canstar research shows the cost of pet insurance has risen over the past year by as much as 9.9% for dogs and 8.7% for cats.
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| Change in average annual pet insurance premiums |
|||
|---|---|---|---|
| 2024 average | 2025 average | Change | |
| Small dog | $1,226 | $1,316 | +$90 (+7.3%) |
| Medium dog | $1,204 | $1,323 | +$119 (+9.9%) |
| Large dog | $1,301 | $1,423 | +$122 (+9.4%) |
| Cat | $714 | $776 | +$62 (+8.7%) |
Source: Canstar. Based on data from Canstar’s 2025 Pet Insurance Awards (July 2025) for accident & illness products. Small dog excludes quotes for French bulldogs.
Insurance isn’t the only pet bill on the rise. The latest ABS Consumer Price Index shows veterinary costs for pets have increased by 5.8% in the past year.
How much does pet insurance cost?
Our research shows the average priced policy across all dogs is $1,359, however, premiums can be much higher for certain breeds.
For example, the average annual premium for accident and illness cover for a Cavoodle is $1,120, while a French bulldog – another small breed – could cost as much as $2,948 per year on average.
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| Annual pet insurance premiums by breed | ||
|---|---|---|
| Breed | Average | |
| Small dog | Cavoodle | $1,120 |
| Dachshund | $1,511 | |
| French bulldog | $2,948 | |
| Medium dog | American staffordshire terrier cross | $1,304 |
| Border collie | $1,250 | |
| Cocker spaniel | $1,414 | |
| Large dog | German shepherd | $1,489 |
| Golden retriever | $1,456 | |
| Labradoodle | $1,325 | |
| Cat | British shorthair | $820 |
| Domestic shorthair | $726 | |
| Ragdoll | $782 | |
Source: Canstar. Based on accident & illness pet insurance products on Canstar’s database.
Shopping around has the potential to save hundreds
Like any insurance, the value of pet cover can vary between providers. We compared pet insurance policies from 27 insurers across 90 options, with an annual benefit limit of $10,000 or more, for its 2025 Pet Insurance Awards research, identifying potential savings.
For example, the owner of a small dog who opts for one of Canstar’s top-rated providers instead of an average-priced one could save around $330 in one year.
Existing policyholders can also switch insurers in search of savings, however, if your pet has any pre-existing conditions, they are unlikely to be covered for this. It’s also important to check what sub-limits apply to breed-specific issues, and the excess costs – including how often you’ll need to pay them. Weighing all of this up, you can decide whether switching is in your and your pet’s best interests.
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| Potential savings in annual pet insurance premiums | |||
|---|---|---|---|
| Market average | Award winner average | Difference | |
| Small dog | $1,316 | $986 | -$330 (-25.1%) |
| Medium dog | $1,323 | $1,105 | -$218 (-16.5%) |
| Large dog | $1,423 | $1,129 | -$294 (-20.7%) |
| Cat | $776 | $624 | -$152 (-19.6%) |
Source: Canstar. Based on data from Canstar’s 2025 Pet Insurance Awards (July 2025) for accident & illness products. Small dog excludes quotes for French bulldogs.
How many pet owners have insurance?
A new survey of 1,104 Australian pet parents found fewer than one-quarter (23%) of Aussie pet owners have pet insurance.
Among those without cover, the most common reason (39%) was that they don’t see the value in it. However, just one in four (25%) say they have enough savings to cover vet bills.
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| Reasons for not having pet insurance | |
|---|---|
| I don’t see the value in it | 39% |
| I have savings to cover vet bills | 25% |
| I plan to get it | 21% |
| My pet is too old | 14% |
| I didn’t know it existed | 1% |
Source: Canstar. National survey of 1,104 pet owners, of which 77% don’t have pet insurance.
The gap between rising vet costs and financial preparedness highlights the need for pet owners to plan ahead, whether through insurance or personal savings. Pet owners who choose not to, or are unable to, take out insurance, should ideally have an emergency fund for unexpected vet bills.
Who are Canstar’s top-rated pet insurance providers for 2025?
Canstar’s Outstanding Value Pet Insurance Awards highlight the providers offering comparative value for money. To be in the running, pet insurance providers must offer policies with an annual benefit limit of $10,000 or over and cover for up to 80% or more of eligible vet bills per year.
This year, Canstar compared policies from 27 pet insurance providers, identifying nine winners:
- Accident and illness: Budget Direct, Knose, Pet Circle, Petsy and Vets Choice.
- Accident and illness with routine care: Budget Direct, Everyday Insurance, Medibank, Petcover and petinsurance.com.au.
Canstar also surveyed over 1,000 pet owners who had recently purchased a pet insurance policy to gauge their satisfaction, with the 2025 Most Satisfied Customers Award for pet insurance going to:
- Bow Wow Meow
Compare cover to take the bite out of pet bills
Canstar’s data insights director, Sally Tindall says, “Pets can be a lifelong companion, but love alone won’t cover a hefty vet bill,” says Tindall.
“Owning a pet isn’t just about throwing the ball and dishing out treats – it comes with real financial responsibility. Vet visits for accidents, illnesses and routine care need to be part of the household budget.
“If you are considering getting cover, just remember it’s like other insurances, the value of cover varies by provider.
“Look for a policy with what’s known as a high ‘benefit percentage’ – that’s the portion of your vet bills the insurer will cover. Understanding what the excess will be and when you might need to pay it is also important, as it can be per claim, per condition or once a year.
‘’Like any insurance, don’t just set and forget your pet cover. Do a check once a year at the renewal date to make sure you’re getting value for money. Canstar’s research shows there could be savings of up to 25 per cent by switching from the average premium price to one of our top-rated providers.
“If you are considering a switch, understand that pet insurance isn’t like human hospital cover. Even if you are switching to a similar or higher level of cover, pre-existing conditions might not be covered.
“Take the time to read the fine print. Check what is and isn’t covered, any waiting periods that apply, and any benefit limits that cap how much you can claim per treatment or condition.
“While pet insurance can provide peace of mind, 77 per cent of Australians are opting to foot vet bills by themselves.
“This could well work out in your favour in the long term, however, it shouldn’t be a matter of crossing your fingers and hoping for the best. Make sure you’ve got funds set aside so that a trip to the vet doesn’t derail your entire budget. Building up a buffer in a high-interest savings account or as extra repayments in the mortgage can help you get ahead while you’re not using the money on your pet.”
This article was reviewed by our Finance Editor Jessica Pridmore before it was updated, as part of our fact-checking process.
