What are the different types of pet insurance?

What types of pet insurance are available in Australia?

There are three broad categories of pet insurance in Australia:

1. Policies that offer coverage for accidents
2. Policies that offer coverage for accidents and illnesses
3. Comprehensive policies that cover accidents and illnesses, plus other treatments.

Some insurers may also offer third-party cover if your pet injures another animal, a person or property.

Each pet insurer may offer various types of coverage, with some insurers covering different events than others. Several home and contents policies may also offer pet insurance as an optional extra.

What is accident-only pet insurance?

Accident-only pet insurance is the most basic type of pet insurance cover available. Nobody wants to see their pet injured; but whether your pet is injured at the dog park, is hit by a vehicle, or is involved in some other accident that results in injury, this type of policy can cover a portion of the treatment costs.

What does accident-only pet insurance cover?

Some common accidents and injuries included in accident-only cover are:

• Allergic reactions
• Broken/fractured bones
• Burns or electrocution
• Car accident-related injuries
• Cuts and abrasions
• Ligament and tendon injuries
• Injuries caused by other animals (e.g. bite wounds)
• Snake, spider or insect bites.

When might accident-only pet insurance be right for you?

Accident-only cover may be appropriate if you only expect you’ll need financial support if your cat, dog or other pet is injured in an accident. For example, you may feel this type of cover may be suitable if your pet has already been desexed and if you are prepared to pay out of pocket for regular treatments, such as worming and vaccinations.

Given that this type of cover tends to be the cheapest option, you may prefer it if you wish to pay lower premiums, and are prepared to pay out of pocket should your pet develop a particular illness that might require treatment. It's also worth keeping in mind that, depending on the age of your pet, some insurers may only offer accident-only cover. And remember there may be a series of exclusions, such as pre-existing conditions, dental treatments, pregnancy and transplant procedures.

What is accident and illness pet insurance?

Accident and injury insurance offers coverage if your pet is injured or suffers illness or disease. Covered illnesses can include cancer, infectious diseases, hereditary conditions, ear and eye conditions (potentially excluding cataracts), spinal conditions and skin conditions.

What does accident and illness pet insurance cover?

In addition to the common injuries listed under accident-only insurance, policies with illness inclusion may cover:

• Cancer treatment
• Eye and ear conditions
• Gastrointestinal conditions
• Hereditary conditions
• Skin conditions
• Swallowing of foreign objects

When might accident and illness pet insurance be right for you?

Accident and illness cover might be appropriate for certain types of pets that are known to experience health conditions. For example, French bulldogs and other brachycephalic dogs such as pugs, shih tzus and Boston terriers are known to suffer from respiratory conditions, while larger dogs like German shepherds can suffer hip dysplasia.

This type of cover may be suitable for you if you have the kind of pet that may have slightly more complex health needs, and/or may be susceptible to a hereditary condition. Before taking on this level of pet insurance, it is worth checking that an insurer covers for any conditions you may be concerned about.

As with the accident-only policy, there may be exclusions with accident and illness cover. It also typically does not cover you for conditions for which there is a vaccine.

What is comprehensive pet insurance?

Comprehensive pet insurance, otherwise known as accident, illness and routine care insurance, provides a level of cover for illness and accidents, as well as other procedures.

What does comprehensive pet insurance cover?

Depending on the insurer, procedures covered under a comprehensive policy may include:

• Dental care
• Flea and tick control
• Teeth cleaning
• Vaccinations
• Worming treatments

Comprehensive pet insurance typically also covers desexing and microchipping; two things that are particularly important in a pet’s first year, and may even be required, depending on where you live.

When might comprehensive pet insurance be right for you?

Comprehensive pet insurance might be suitable for you if you feel your pet may be susceptible to certain health conditions, and you also want to be covered for annual routine expenses such as vaccinations, teeth cleaning, flea and worming treatments.

It is worth noting that there are also certain exclusions to comprehensive cover. Pre-existing conditions will typically not be covered, and more complex procedures such as complicated surgeries, organ transplants and artificial limbs may not be covered. It is often a good idea to check what exclusions apply to any policy you are considering.

It is also worth noting that if signs of abuse or neglect are detected in an animal, these can cause your pet insurance to be voided.

How much of your vet bill is covered by pet insurance?

While pet insurance will rarely cover your entire bill, you can be covered from 80% eligible vet bills up to 100%, depending on circumstances such as the age of your pet.

Pet insurers offer different annual benefit limits, which describes the maximum amount of money you can claim in a year. Depending on the insurer, you might be able to claim up to $25,000 or more in a year.

When you take out pet insurance, you will typically also be asked to choose a percentage benefit limit. This describes the maximum amount of each bill that you can claim, and it could vary from 60% to 90% or even 100%, depending on the provider.

When it comes to pet insurance, the higher the total annual benefit limit, and the higher the percentage benefit limit, the more you can generally expect to pay.

How do you compare pet insurance?

Each year, Canstar highlights leading pet insurance providers through its Outstanding Value Awards for both accident and illness and comprehensive pet insurance policies. The award is given to the insurance providers that offer Australians the greatest value for money. We also ask consumers about which pet insurer they are most satisfied with, and you can also see the winner at the link above.

If you wish to compare pet insurance to find a policy that might suit you and your pet, you can also do that with Canstar.