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Is pet insurance worth it?
Is pet insurance worth it?
Written by
Madeline Pettet
Edited by
Laura Crowden
Reviewed by
Adrian Bennett
Long story short
Pet insurance pays a percentage of your pet’s eligible medical expenses
Depending on your policy, this might include illness and injury, as well as routine care.
Veterinary care can be one of the biggest expenses of owning a pet, but pet insurance may help
Vet costs are the second biggest pet expenditure in Australian households. Pet insurance could help stop financial concerns from getting in the way of important medical treatment.
While pet insurance may get more expensive as your pet ages, it may also give you peace of mind
You might sleep easier knowing you have some financial help for eligible vet bills, including for emergencies and newer treatments.
Do I need pet insurance?
Pet insurance can be worthwhile if you want to avoid potentially being left out of pocket by high, unexpected vet bills. It isn’t mandatory but it can help cover some of the costs of your pet’s eligible medical bills if they’re sick or hurt. Plus, the enviable peace of mind can be well worth the cost of regular premiums.
Having pet insurance can help you feel at ease knowing you’re a responsible pet owner who can make decisions based on your pet’s health needs, not your bank balance. Not only could help you look after your pet through thick and thin, it could also save you some sleepless nights!
Some Aussie pet owners do without pet insurance, with cost often being the primary reason. Cat owners are more likely than dog owners to question the value of pet insurance. But unexpected illness or accidents could throw a spanner in the works anytime, and suddenly send you and your fur child to the vet. Without pet insurance that would mean having to pay the full cost for expensive treatments, which could potentially cost more than ongoing monthly premiums.
With pet insurance, you’ve got a backup plan for unforeseen expenses. But in the end, it’s your call and you’ll just need to weigh up the risk versus the cost.
Is pet insurance worth it for me?
Pet insurance could be well worth it if you want to avoid or significantly reduce how much you’ll need to pay for sudden illnesses or accidents. With today’s cost of living, Aussies are feeling the pinch: over one in 10 pet-owning households in Australia required financial assistance to cover veterinary care. Just over one in 5 cat owners (22%) and 3 in 10 dog owners (30%) admitted to less frequent vet visits specifically because they couldn’t afford it.1Animal Medicines Australia – Pets in Australia: A national survey of pets and people Paying regular premiums may be seen as the cheaper option than facing unexpected vet bills that could set you back a few thousand dollars.
For instance, a consultation or checkup with a vet could cost $80–$150. Meanwhile, a minor surgery, such as the removal of a small mass, could cost anywhere from $500 to $1,000. A major or emergency surgery – including specialist fees, ICU and diagnostics – could be between $1,500 and over $5,000. Having pet insurance could help bring down these sizeable out-of-pocket costs.
There are some things to keep in mind when making your decision – like pre-existing conditions, the age and breed of your pet and how much money you’ve set aside in your savings account for unexpected vet bills. Pet insurance can be especially worthwhile if your pet is young, classified under a high-risk breed, or has serious illnesses or chronic conditions – as what you can get back from claims could potentially exceed your regular premiums.
And while only you can determine whether pet insurance is worth it for you and your fur baby – here are some questions that could help you decide:
- Without pet insurance, could you afford an unexpected pet emergency?
- Would you be comfortable dipping into your savings or paying with your credit card?
- What’s your pet’s age, breed, wellbeing and lifestyle?
- What’s your pet’s life like, and does it have its own unique circumstances, including pre-existing conditions?
Circumstances change all the time, from your own financial situation to your pet getting older. Your decision about whether or not pet insurance is worthwhile could change as well. Although it’s worth keeping in mind that leaving your furry mate uninsured for too long could also mean running the risk of having more pre-existing conditions when you finally decide to get one – or not being able to get pet insurance at all (as some policies won’t cover a pet after a certain age).
All these said, pet insurance isn’t just about addressing your pet’s health. It’s also about responsible pet ownership and providing your fur baby with the best care possible when they really need it.
Could pet insurance be worth it for these fictional pets?
Kiko
Kiko is a three-year-old cat who stays indoors.
As an indoor cat, Kiko is less likely to be injured in accidents or fights with other animals. She’s also less likely to be exposed to infections or parasites.
Kiko sees the vet annually for a dental check-up and clean. Her vaccinations are also kept up-to-date at this time, so when Kiko’s owner goes away on holiday, Kiko can go to the local cattery.
Kiko’s owner decides to take out pet insurance cover for both accidental injuries and illnesses. They also add routine care to her policy.
Cooper
Cooper is a seven-year-old border collie/Staffordshire terrier cross. Weighing 33kg, Cooper qualifies as a large-breed dog, even if he thinks he’s a lap dog.
As Cooper is a mixed-breed dog, he’s less disposed to a range of health conditions. Plus, Cooper has an average-length snout, so he doesn’t have any breathing difficulties like short-nosed (brachycephalic) dogs.
These traits have meant Cooper is in pretty good condition as he approaches his twilight years. Cooper is still an active dog who enjoys regular walks and play sessions with other dogs. He also goes camping at least four times a year with his owner.
So, Cooper’s owner chooses an accidental injury pet insurance policy, just in case Cooper gets hurt somehow.
Helpful tip
In Australia, we humans get to enjoy government-subsidised healthcare through systems like Medicare. Unfortunately, pets aren’t quite as lucky. This can mean making some tough decisions if your pet is seriously unwell and you don’t have the funds for their treatment.
Pet insurance may mean you’re able to treat those more significant conditions, like cancer or joint injuries, so you and your four-legged best friend can keep enjoying life together. They’re a part of the family, after all.
Adrian Bennett
General Manager for General Insurance
What does pet insurance typically cover?
Pet insurance often helps cover eligible vet expenses for injuries or illnesses – say fractured bones, skin conditions, bite wounds, cancer and tick paralysis. It could also include diagnostic tests like X-rays and bloods, animal hospital admissions, and medications. Depending on your policy and level of cover, you might also be able to get optional add-ons like vaccinations and dental checkups.
If you’re not sure what a policy covers, have a look at the Product Disclosure Statement.
Typically covered
Pet insurance typically includes eligible veterinary care and services that may include treatments for:
snake bites
fractured or broken bones
bite wounds
skin conditions
ingestion of a foreign object or other gastrointestinal problems
cancer
tick paralysis.
Optional routine care
You can usually choose to add on optional routine care such as wellness or preventive services to your pet insurance policy, in exchange for a higher premiums.
This can include cover for:
desexing
microchipping
dental cleans and some other pet dental care
health checks
vaccinations
flea, tick and worm control
alternative therapies
behavioural therapy and obedience training
emergency boarding
essential euthanasia, cremation and burial.
Not typically covered
When it comes to typical exclusions in a pet insurance policy, you might find that it doesn’t usually cover pre-existing conditions, routine or preventative care, pregnancy care, breeding, elective procedures and negligence:
chronic pre-existing conditions that require ongoing care, including if signs or symptoms began during the waiting period
treatment costs to do with pregnancy and breeding
general care, like food and grooming
elective (not medically necessary) treatments
diseases that are preventable with vaccinations
conditions caused by gross negligence.
How much could pet insurance cover for common vet bills?
Pet insurance typically covers 60% to 100% of eligible vet bills for common illnesses and accidents, with annual cover limits running from $10,000 to $30,000, depending on the policy. Pet owners usually pay an excess, then the insurance company pays the corresponding benefit percentage of the bill. Here’s what it could look like:
Pet insurance benefit percentages and annual limits – by level of cover
| Typical benefit percentage | Common annual cover limit | |
| Comprehensive cover | From 90% to 100% | $15,000 to $30,000 |
| Mid-range cover | Around 80% | $12,000 to $15,000 |
| Basic cover | From 60% to 80% | $10,000 to $12,000 |
Note: These figures reflect indicative pet insurance levels of cover in Australia based on internal data and rounded where appropriate. Estimates include internal calculations applied to this data. Actual costs may vary depending on individual circumstances and policy inclusions. Quotes retrieved on 1 June 2026.
Here’s a fictional scenario. Say our imaginary friend Kaitlin wants to make a $2,000 claim for a skin condition treatment of her dog, Lola. Her policy has an annual benefit percentage of 80% and a $200 excess. If her claim is accepted, her pet insurance provider will then pay $1,400.
Eligible vet expenses: $2,000
Annual benefit percentage (80%): $1,600
Less the excess payable by Kaitlin: $200
Pet insurance pays: $1,400
How much does it cost to look after a pet in Australia?
In Australia, the average annual household spend in 2025 was over $2,500 for dogs and almost $1,700 for cats. The cost of pet insurance isn’t the only thing to consider when caring for a pet. There are also things like food, products or accessories, flea and tick treatments, dietary supplements, grooming, behaviour training and therapy, medicines, and even boarding or pet minding and transport.
Here’s how much pets cost – broken down into dogs and cats.
Average annual household spend for dogs and cats in Australia
| Dogs | Cats | |
| Food | $1,090 | $884 |
| Veterinary services | $168 | $154 |
| Products or accessories | $117 | $87 |
| Pet insurance | $145 | $70 |
| Flea/worming and tick treatments | $122 | $102 |
| Dietary supplements | $124 | $84 |
| Clipping or grooming | $139 | $58 |
| Training/behaviour/therapy | $117 | $61 |
| Competitions or memberships | $97 | $19 |
| Veterinary medicines | $102 | $45 |
| Walking | $119 | |
| Alternative healthcare treatments | $84 | $35 |
| Boarding or minding | $46 | $34 |
| Transport | $50 | $21 |
| Others | $1 | $2 |
| Total spend per household | $2,520 | $1,656 |
Note: These figures reflect indicative vet services in Australia based on data from Animal Medicines Australia’s report, Pets in Australia: A national survey of pets and people. Actual costs may vary depending on individual circumstances. Based on data from April 2024 to March 2025.
The vet and health costs, in particular, can really add up. In 2024-2025, vet costs were the second-highest pet expenditure for Australians, which amounts to $168 for dogs and $154 for cats. It follows the biggest pet expense – food – totalling to over $1,000 on average for dogs and more than $800 for cats every year.2Animal Medicines Australia – Pets in Australia: A national survey of pets and people
And as much as we love them, pets can be a big financial commitment. There are one-off initial costs, like their adoption fee and microchip, plus essential items like a bed, a collar, bowls and toys. Pets also have lots of ongoing costs like food, litter, annual vaccinations and health checks, and regular flea and worming treatments.
Of course, the type, breed, and age of your pet can play a role in what these and other costs will be like for you. Whether or not your pet regularly seek outs mischief might also have an effect.
What are the pros and cons of pet insurance?
Pet insurance could help provide the invaluable peace of mind that comes from knowing you could more easily cover unexpected but expensive veterinary services following an illness or accident. Depending on the policy, it could cover up to 100% of eligible vet bills, helping you avoid or reduce high out-of-pocket costs. But it could also mean having to pay monthly premiums and an excess at vet or animal hospital visits. Pet insurance also doesn’t cover everything – pre-existing conditions, for instance, are typical exclusions, and conditions like cruciate ligament injuries will have a waiting period of months.
Pros
- Helps cover some of the costs of eligible vet bills
- Offers the flexibility of different levels of coverage
- Provides peace of mind in case your pet needs unexpected medical care
- Might mean you can opt for newer and more advanced treatments for your pet
- Has a competitive market of providers to help you find better value
Cons
- May exclude pre-existing conditions
- Not available for pets taking out a new policy over a certain age
- Usually gets more expensive as your pet ages
- Often has benefit caps and annual claim limits
- Might have limited options or no availability for older pets or certain breeds
Frequently asked questions
What types of pet insurance policies are available?
Pet insurance policies come in various levels of cover, including accident-only, accident and illness and comprehensive with optional routine care extras.
Cover just for accidents is at one end of the spectrum, whereas cover on the other end may include injuries, illnesses (like cruciate ligament conditions) and even some routine care procedures.
A more comprehensive policy may also come with higher claim limits and mean a greater percentage of your eligible vet bills are covered.
How do I find out what’s covered in my pet insurance policy?
The exact details of your coverage may be found in the policy’s Product Disclosure Statement and certificate of insurance. These handy documents can fill you in on what a policy will and won’t cover in various situations. Any waiting periods that apply before you can make a claim will also be listed there. You can access them through your insurer’s website, portal, app or customer service representatives.
Is it worth making a pet insurance claim?
Yes, making a pet insurance claim is usually very much worth it, especially for eligible major, unexpected illnesses or accidents requiring expensive treatments and procedures. It can help you avoid the sting of shouldering high out-of-pocket costs, not to mention the difficult and expensive decision to euthanise your beloved pet.
The main reason you might decide to pass up a claim opportunity is if you’re concerned about it affecting your premium come renewal time. Your claims history, along with other factors, will be reviewed to understand your pet’s risk profile. Keep in mind that your pet’s age is also a contributor to that risk factor. This, along with the rising cost of veterinary treatment with new advancements and technology, means you’ll likely see your pet insurance premium increase even if you don’t claim.
To put it simply, that means if your policy covers your pet’s treatment, there’s usually no good reason not to claim on your pet insurance.
iSelect does not offer a comparison service for Pet insurance policies at this time.
Any advice provided by iSelect on this website is of a general nature and does not take into account your objectives, financial situation or needs. You need to consider the appropriateness of any information or general advice we give you, having regard to your personal situation, before acting on our advice or purchasing any policy. You should consider iSelect’s Financial Services Guide which provides information about our services and your rights as a client of iSelect.