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KEY POINTS
- Pet insurance works similarly to health insurance, but for your pets.
- Pet insurance policies may cover accidents only, accidents and illnesses, or offer comprehensive coverage that may also include some routine care.
- The overall value of a pet insurance policy may depend on the type of animal you’re insuring and what treatments it’s likely to require.
What does pet insurance cover?
Insurance for your pets is a lot like health insurance for yourself and your loved ones – it may cover some or all of the cost of treatments for accidents, injuries, illnesses, routine care procedures and more, depending on the policy and the insurer.
Exactly what a pet insurance policy covers will depend on the type of pet (a cat or dog will have different health risks compared to a rabbit, for example), as well as your insurer, and the level of cover. Generally, you can expect your pet insurance policy to cover at least part of the cost of vet bills if your pet needs treatment following an accident or misadventure, or if they catch a disease.
As well as helping with vet bills for medical treatments, procedures and surgeries, pet insurance may help cover the cost of medicines for your pet. Veterinary medicines aren’t included as part of Australia’s Pharmaceutical Benefits Scheme, so they can be significantly more expensive than similar drugs for humans.
What does pet insurance not cover?
Like other types of insurance, your pet insurance may have exclusions, which may include:
- Pre-existing conditions
- Pregnancy and obstetrics
- Elective treatments
- Preventative care e.g. teeth-cleaning, vaccinations and desexing (though some of these procedures may be covered by comprehensive policies as ‘routine care’)
- Harm that has been caused to your pet deliberately or by negligence
- Non-emergency at-home vet visits or transportation to the vet
- Non-emergency boarding
Make sure you review a policy’s Product Disclosure Statement (PDS) and Target Market Determination (TMD) to get a good understanding of what is and isn’t covered and whether the insurance on offer is suitable for you and your pet’s needs.
What are the different types of pet insurance?
There are three main types of pet insurance in Australia:
Accident-only pet insurance
This level of pet insurance covers accidents and emergencies only. For example, if your pet is bitten by a snake or hit by a car, this kind of insurance may cover some or all of the vet costs associated with emergency treatment.
Accident and illness pet insurance
This level of pet insurance also covers accidents and emergencies, plus some or all of your pet’s treatment costs for illnesses and diseases. This could include anything from cancer through to eye and ear conditions, and even infectious diseases.
Comprehensive pet insurance
Comprehensive pet insurance covers accidents and illnesses (with generally higher claimable limits), and often also helps to cover ‘routine care’ procedures, such as vaccinations, worming treatments, dental care, flea and tick control, desexing and microchipping. Some policies will allow you to purchase ‘routine care’ options as an optional extra.
- Accident & Illness
- Tick paralysis & skin conditions
- Benefit waiting periods may apply
Read the PDS & check suitability.
- Accident, Illness & Routine Care
- Tick paralysis & skin conditions
- Benefit waiting periods may apply
Read the PDS & check suitability.
- Accident & Illness
- Tick paralysis & skin conditions
- Benefit waiting periods may apply
Read the PDS & check suitability.
- Accident, Illness & Routine Care
- Tick paralysis & skin conditions
- Benefit waiting periods may apply
Read the PDS & check suitability.
How does pet insurance work in Australia?
Pet insurance works a lot like health insurance for humans in Australia – if your pet requires medical treatment, you can put in a claim for its cost to your insurer, in exchange for paying a regular premium.
Your pet insurance policy will likely have a set maximum limit you can claim per year. Choosing a lower maximum limit could help to make your premiums cheaper, though you may end up paying for more treatments out of your own pocket.
It’s also worth noting that, no matter what level of cover you have with pet insurance, the costs of treatment are unlikely to be covered in full, and if your pet needs surgery or treatment, you will have to pay a portion of the cost yourself.
When making a pet insurance claim, you’ll likely need to pay an excess, much like with other types of insurance. Choosing a higher excess can mean paying lower premiums, but you may end up paying for more of your pet’s treatments by yourself.
You may need to serve a waiting period on your pet insurance before you can start making claims, much like with a health insurance policy. The RSPCA says that pet insurance typically comes with a 30-day waiting period for illness conditions, and up to a six-month waiting period for ‘cruciate’ conditions, or those associated with the cruciate ligament in the knee.
The RSPCA also says that some providers may be willing to waive certain waiting periods, but this will be at their discretion, and you will need to ask your individual insurance provider if they are willing to do this.
Similarly to a health insurance policy for humans, there will likely be exclusions and exceptions in your pet insurance policy. For example, you may not be able to successfully make a claim if your pet has pre-existing conditions.
Is pet insurance worth it?
Much like a more typical health insurance policy, to get an idea of the value for money a pet insurance policy offers, you’ll need to look at the coverage and extras, as well as the premiums, excess, features, benefits, fees and charges.
Vet visits can be very expensive, especially if your pet needs treatment beyond their regular checkups. Surgery and medication costs can quickly add up, leaving you in the challenging position of weighing up your household finances against your beloved pet’s health and wellbeing.
You may want to consider estimating the average cost of maintaining your pet’s health, and compare this to pet insurance premiums to get a better idea of if a pet insurance policy is worth it. In mid-2025, the average cost of a comprehensive pet insurance policy can range from $828 to $1,460, depending on the type of animal you are insuring and its breed. Consider comparing pet insurance from several different insurers, as some policies may offer different levels of cover, features and benefits.
Cover image source: urbazon/istockphoto.com
