Australia's top pet insurance providers in 2022

A 2021 study conducted by Animal Medicines Australia (AMA) has found a surge in pet ownership in the country during the pandemic, with 69% of all participating households saying they have taken in a pet amid the coronavirus outbreak. The figure represented an 8% rise in two years and translated to a record-high 30.4 million pets across the nation. 

The boom was led by an increase in dog ownership, with more than a million additional canines brought to Australian homes since 2019. Overall, about a fifth of all pet dogs in the country have been procured during the pandemic, split equally between new and experienced owners, according to the triennial report.

However, contrary to popular belief that COVID-19 was the main reason for rising pet ownership, the study has revealed that most owners had long been considering getting a pet even before the outbreak and the restrictions imposed during the pandemic had simply allowed them to do so.

“Our research indicates that the COVID-19 pandemic restrictions may have created an opportunity for Australians to introduce a previously desired pet into the family, rather than the pandemic being the reason itself for acquiring a pet,” explained Lance Williams, chairman of the board of directors at AMA. “For instance, working from home arrangements have provided the opportunity to spend time with a young pet.”

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The research also highlighted the positive impact pet ownership had on people’s lives. About 70% of those who participated in the study said that having a pet has “improved their lives” during the pandemic.

“While the participants in both the focus groups and the survey struggled to pinpoint specific changes to behaviours in their pets or themselves, they were able to readily name overall benefits, including companionship, comfort, positive mental and physical health, and unconditional love,” the report noted.

In addition, the study found that pet owners allocate $3,200 per dog and $2,100 per cat each year, primarily for food, veterinary services, and healthcare products. Extrapolated across the country, dog owners have spent $20.5 billion and cat owners $10.2 billion in the past year.

But despite having among the highest rates of pet ownership in the world, data gathered by market research firm Roy Morgan has revealed that a scant 6% of Australian pet owners carry insurance, highlighting a substantial protection gap.

“With the high potential cost of some veterinary procedures, it appears that most pet owners are either prepared to take the risk or perhaps are unaware of the potential high costs involved,” said Norman Morris, industry communications director at Roy Morgan. “The annual cost of the insurance is also likely to deter the take up of pet insurance for many.”

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How does pet insurance work in Australia?

Pet insurance is designed to protect pet owners from the financial impact of sudden and unexpected veterinary expenses. Policies typically follow a reimbursement-based model, allowing policyholders to consult or get treatment from a specialist of their choosing. However, there are also a few pet insurance providers that offer the option to pay the veterinarian directly.

Policies vary between insurers but each outline which conditions and expenses are covered, reimbursement rate, deductible, and maximum payout or annual limit. Each plan also has a waiting period before coverage kicks in. The time varies depending on the insurance company, but most require a waiting period of 14 days.

What does pet insurance cover?

Pet insurance plans in Australia offer three main types of coverage. These are:

• Accident-only: The most basic form of coverage, such policies cover the cost if a pet suffers an accidental injury, including those sustained after being hit by a vehicle.
• Accident and illness: This is the most popular type of pet insurance policy in Australia, covering the cost to treat injuries sustained in an accident and certain diseases.
• Comprehensive: This top-tier protection covers illnesses and accidental injuries, as well as additional expenses such as surgery, hospitalisation, euthanasia, and medication. Routine or preventative care may also be offered as a standard inclusion.

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How much does pet insurance cost?

Just like in other types of insurance, premium prices for pet coverage are determined based on a range of factors, including:

• The type of pet
• The pet’s age
• The pet’s gender
• The pet’s breed
• Where the pet owner resides
• Whether the pet is desexed/spayed or not
• The level of coverage
• The excess amount

According to MoneySmart, Australian pet owners spend between $20 and $60 on pet insurance monthly, which is equivalent to between $240 and $720 annually. By comparison, owners shell out an estimated $450 every year on veterinary expenses on top of the $300 to $450 for flea, tick, and de-worming procedures, along with other treatments. This means pet ownership expenses can add up “pretty quickly,” according to the firm.  

Is taking out pet insurance worth it in Australia?

According to experts, the biggest benefit of taking out pet insurance is peace of mind. It gives pet owners the assurance that in an event of an expensive illness or accident, they can afford to give their pets the best care possible.

“Pet insurance can give you peace of mind knowing you will be financially protected in the event your dog or cat suffers an illness or injury,” explained the animal welfare organisation and pet insurance provider RSPCA. “With the unpredictable costs of vet visits, not having pet insurance could mean the risk of being hit with an expensive bill if an unfortunate worst-case scenario occurs.”

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The consumer opinion website ProductReview.com.au added that getting coverage may be worth it if pet owners believe that they could not afford the upfront costs of veterinary treatment if their pets get sick or injured.

“This is the primary reason pet insurance exists – to help you afford veterinary costs,” the site noted. “The nature of an accident or even an unexpected illness is that it’s sudden and unplanned. If you don’t have enough money saved up for a rainy day, you could find yourself in a stressful situation, prolonging treatment for your pet until you figure out how to get the money.”

In its 2022 pet health monitor report, the pet insurance specialist PetSure revealed the top five medical conditions for dogs and cats, along with the corresponding treatment expenses, to give pet owners a picture of how much it costs to take care of their furry friends. Details are revealed in the tables below.

_{Source: PetSure, 2022 Pet Health Monitor}

What do the top pet insurance companies in Australia cover?

To provide pet owners a comparison of the level of coverage the best pet insurance companies in Australia offer, the pet insurance marketplace Top10PetInsurance.com.au compiled data from dozens of the country’s top industry players, including reimbursement rates, waiting periods, benefit limits, and excess amounts.

Premium prices, meanwhile, were based on a hypothetical six-month-old de-sexed female Cavalier King Charles Spaniel, with a 60-year-old owner living in New South Wales, with a 2150 postal code.

Here’s a comparison of the country’s leading pet insurance providers.

_{Source: Top10PetInsurance.com.au, March 2022}