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Aussies have always loved pets but pet ownership in Australia reached new heights after the onset of the pandemic, according to Animal Medicines Australia. The organisation’s Pets in Australia survey found that Australia’s pet population is estimated to be 28.7 million – with 6.9 million households having a pet. The report says this equates to 69% of all households, significantly higher than the 61% recorded in 2016 and 2019, before the pandemic. Dogs are the most popular pets with almost half (48%) of Australian households having at least one dog. Cats are the second most popular option (33%).
If you are considering adding a furry friend to your family, chances are you have thought about pet insurance and may have a question or two. We tackle five common questions about pet insurance.
1. How much is pet insurance?
Just how much you’ll pay will depend on a number of factors including the level of cover you choose, the type of pet you have and how old your pet is.
Canstar crunched the numbers based on two different levels of cover and four different types of pets. It also compared the average premiums of products that have a Canstar five-star rating with the rest of the market.
Average annual premium of accident & illness pet insurance
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5-star average | Rest of market | Difference | |
|---|---|---|---|
Small dog | $1,098 | $1,664 | $566 |
Medium dog | $894 | $1,248 | $354 |
Large dog | $936 | $1,356 | $420 |
Cat | $497 | $744 | $247 |
Source: Canstar – 18/07/2024. Based on Accident & Illness pet insurance products rated in Canstar’s 2024 Pet Insurance Award (July 2024).
Average annual premium of accident, illness & routine care pet insurance
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5-star average | Rest of market | Difference | |
|---|---|---|---|
Small dog | $1,169 | $1,935 | $766 |
Medium dog | $1,006 | $1,390 | $384 |
Large dog | $1,089 | $1,492 | $403 |
Cat | $560 | $864 | $304 |
Source: Canstar – 18/07/2024. Based on Accident, Illness & Routine Care pet insurance products rated in Canstar’s 2024 Pet Insurance Award (July 2024).
As you can see from the tables above, average premiums range from $497 a year to $1,935. You’ll notice that the average premiums of five-star rated products are a fair bit cheaper than the average of other products on Canstar’s database.
Cats tend to be the cheapest to insure while small dogs are the most expensive. Not surprisingly, you’ll pay more for cover that includes ‘routine care’ such as flea and tick and worming treatments.
It’s worth noting that the age of your pet may also affect the cost. You might find that your premiums increase as your pet gets older.
Compare pet insurance2. Is pet insurance worth it?
Whether or not pet insurance is worth it is a very personal decision. Something to consider is the breed of your pet. Some breeds of cats and dogs are more prone to certain genetic conditions or susceptible to certain illnesses so this is something worth looking into.
You might also consider whether you’d be able to afford a large, unexpected bill if your pet got sick, ate something it shouldn’t have or was in an accident. In some cases, the vet bill could come to thousands of dollars.
Let’s take a look at how much common health issues could set you back. In 2023, the top three health conditions experienced by dogs aged one to eight were skin infection/allergy, ear infection and gastrointestinal disease, according to Petsure’s 2024 Pet Health Monitor Report. The average cost for treatment starts at about $400 but the highest cost could be more than $26,000.
Top 3 health conditions in dogs 1-8 years old
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Condition | Average cost | Highest cost |
|---|---|---|
Skin infection/allergy | $586 | $20,622 |
Ear infection | $399 | $20,654 |
Gastrointestinal disease | $812 | $26,435 |
Source: Petsure 2024 Pet Health Monitor
And if your dog ingested toxins or a foreign body, PetSure 2023 data indicates you could end up forking out around $5,000 on average if surgery was required.
3. Does pet insurance cover desexing?
Only 1% of pet insurance products on Canstar’s database include desexing as a standard feature and roughly half (47%) offer it as an optional extra. It’s worth taking a close look at the product disclosure statement to get all the details. Be sure to check if there is a limit to how much you can claim and what the excess would be. You should also do your sums to see if the extra cost is worth it, or if you’re better off paying out the one-off expense.
4. What does pet insurance cover?
Most pet insurance policies will help cover the cost of treating your pet for specified accidental injuries such as bone fractures, snake bites, burns and allergic reactions. You can also expect health issues such as skin conditions, gastrointestinal issues, cancer treatment and arthritis to be covered.
Percentage of pet insurance plans that cover common pet issues
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Accident & Illness | |
|---|---|
Arthritis | 95% |
Bone fracture | 100% |
Cancer treatment | 98% |
Cataracts | 97% |
Diabetes | 83% |
Ear/Eye conditions | 94% |
Gastrointestinal | 97% |
Skin conditions | 97% |
Tick paralysis | 97% |
Retained deciduous teeth | 48% |
Routine Care | |
Flea/Tick/Worm control | 81% |
Heartworm control | 90% |
Source: Canstar – 18/07/2024. Based on pet insurance products available for Accident & Illness or Accident, Illness & Routine Care on Canstar’s database. List based on non-exhaustive selection of common pet issues.
If you opt for a policy that includes ‘routine care’ things such as flea and tick control, teeth cleaning and vaccinations might also be included but it depends on the product and insurer.
Also, keep in mind you’re unlikely to be reimbursed for the treatment’s full amount as most policies have limits.
It’s a good idea to check the product disclosure statement to find out what is and isn’t included as well as what limits apply.
5. What is the best pet insurance?
Canstar’s annual Pet Insurance Awards recognise the providers delivering outstanding value pet insurance products to Aussie consumers. Here are the 2024 winners:
Outstanding Value Pet Insurance Award
- Budget Direct
- Knose
- Petsy
- Pet Circle Insurance
Outstanding Value Pet Insurance with Routine Care Award
- Budget Direct
- Medibank
- petinsurance.com.au
Cover image source: Nina Buday/Shutterstock.com
