How much is pet insurance? Comparing monthly policies vs. vet bills

With cost of living a topic on everyone’s mind, many are asking, “How much is pet insurance?”.

While some are willing to risk it and go without it, others consider the peace of mind that can pay off (financially and metaphorically) in the long term.

In this article, we’ll break down the average cost of pet insurance and compare them to the sudden expenses that can arise if your pet has an accident or health issue. 

By the end, you’ll have a clearer picture of how it can be a smart safeguard for you, your furry friend, and your wallet.

How much does pet insurance cost?

Given pets are considered precious family members, you’d want to protect them from illness or harm where possible. More importantly, you’d want to spare yourself and your family from having to make any heartbreaking decision if it meant outlying a large sum of money in an emergency.

On average, dog owners can expect to pay around $20 to $60 per month for basic accident and illness cover, while more comprehensive dog insurance can range from $70 to over $100. Cat insurance, in comparison, often costs less – averaging between $10 to $40 per month for basic coverage, and slightly higher for premium plans.

Of course, pet insurance prices can vary based on factors like; the type of pet you own, your pet’s breed, your pet’s age, and their living situation. Different pet insurers will also differ in what they cover, which can alter the cost of the policy. 

Considering whether pet insurance is worth it?

According to a recent survey conducted on pet ownership in Australia, over 60% of Australian respondents don’t have insurance because it’s too expensive.

Considering the average cost of acquiring a pet has almost doubled since pre-covid times, it’s only natural to try and save on costs where possible. 

The question is, however, how much are you really saving?

After pet food, vet bills and medications are the second biggest expense for Aussie pet owners. 

So why not reduce the upfront expense and make way for a stress-free safety net that covers things like consultations, treatments, surgeries, and even specialist care.

For the cost of your takeaway coffees each month, your pet’s health & safety should be the same as their love for you. Unconditional.

What does pet insurance cover?

Many quality insurance providers offer pet policies with coverage tailored for common health issues and accidents. Look for plans that cover:

• Accidents: Injuries from car accidents, fractures, poisoning, and ingestion of foreign objects.
• Illnesses: Common conditions like skin infections, ear infections, and stomach issues, as well as more severe illnesses such as cancer or kidney disease.
• Surgery and hospitalisation: Coverage for surgeries and follow-up treatments that can otherwise be very costly.
• Diagnostics and testing: Reimbursements for x-rays, MRIs, blood & urine tests, and specialist consultations.

If your dog or cat gets sick or injured, some insurers may reimburse up to 80% of eligible vet expenses.

And, for an extra layer of protection, the best policies often include wellness and preventative care add-ons for vaccinations, dental cleanings, and flea and tick treatments.

Do your research on the best pet insurance Australia has to offer, and shortlist the ones that offer:

• Your choice of vet
• Routine pet care inclusions (think vaccinations and dental check-ups)
• Multiple annual claims
• Coverage for tick paralysis and snake attacks

At the end of the day, value outweighs all else. 

Monthly pet insurance costs vs. potential vet bills

To truly see the value of pet insurance, let’s consider some common scenarios and their associated costs.

Dental disease

• Treating dental disease in dogs costs an average of $706, including cleanings, extractions, and anaesthesia. For dogs with advanced dental problems, the price could easily rise even higher. 
• If you have pet insurance with coverage for dental treatment, much of this expense can be reimbursed. 

Given this is one of the most common issues seen in veterinary medicine – with 80% of dogs (and 70% of cats) over the age of 3 suffering from dental disease – it’s a no-brainer to invest in pet insurance for this scenario alone!

Skin allergies

• Treating skin allergies in dogs can be surprisingly costly, with the total cost often ranging from $500 to $2,000 per year. This includes expenses for regular vet consultations, specialised skin treatments, allergy testing, and medications. 
• For pet owners with an insurance policy that covers allergies, a substantial portion of these costs can be reimbursed. Monthly pet insurance premiums help make managing chronic skin issues more affordable and predictable, allowing your dog to get consistent care without financial strain.

Orthopaedic conditions

Orthopaedic conditions like hip dysplasia, intervertebral disc disease, patella luxation, and elbow dysplasia are prevalent in many dog breeds, especially large breeds and certain small breeds. Over 60 dog breeds are known to be prone to these issues, including popular breeds like Labradors, Golden Retrievers, German Shepherds, Dachshunds, and French Bulldogs.

• Treating these conditions can be extremely costly. Surgery for hip dysplasia, for example, can run between $1,500 and $7,000, while spinal surgery for intervertebral disc disease may exceed $5,000. When you add the costs of X-rays, medications, physical therapy, and follow-up appointments, expenses can quickly accumulate to $10,000 or more in severe cases.
• A comprehensive pet insurance policy covering orthopaedic conditions can help owners manage these high costs. The financial support of pet insurance allows you to pursue the best care options without being burdened by the substantial costs of surgery and ongoing care.

Fractures or bone injuries

• If your pet gets physically injured in an accident and suffers a broken bone, the average cost to treat this is $3,805 – possibly even more if surgery is needed. This is an injury cats tend to experience, with a fracture of the femur (thigh bone) being most common.
• The best pet insurance policies in Australia will include this and will cover the majority of eligible vet bills in order to get your pet back on its feet.

Costs of common dog conditions

Costs of common cat conditions

Weighing up the benefits of pet insurance

Pet insurance isn’t just about the dollar amount saved on any one treatment. It’s about having peace of mind knowing that you won’t need to choose between your pet’s health and your finances. This assurance can be priceless in moments of crisis, allowing you to make decisions based on what’s best for your pet – without hesitation.

What to look for in a pet insurance policy

Not all pet insurance plans are created equal. Here are some features to consider:

• Flexible coverage levels: Look for plans that allow you to choose your level of coverage, for a balance of protection and affordability.
• Generous reimbursement rates: The higher the reimbursement on covered claims, the lower your out-of-pocket costs. Find an insurer that offers a return of 80% of eligible vet expenses, so the vast majority of the costs are taken care of.
• Annual coverage limits: Some plans offer high or unlimited annual payout limits, meaning you won’t be restricted if your pet needs multiple treatments in a year.
• Quick and convenient claims process: The best pet insurance companies will offer convenience to make a claim at any time of day or night, 365 days of the year, with options for fast reimbursements or direct payments to the vet.
• Multi-pet discounts: If you have more than one pet, find a provider that will allow you to add all pets onto the same policy – and even potentially provide a discount for insuring multiple animals – helping you manage costs even better.

The bottom line: Is pet insurance worth it?

Ultimately, the question of whether pet insurance is worth it isn’t just about the monetary cost. 

While monthly policy payments may seem like an extra expense when you consider the potential costs of an emergency, pet insurance quickly proves its value.

For pet owners looking to avoid the stress of unexpected vet bills, a high-quality pet insurance policy may be one of the best investments they can make. 

And, with award-winning plans on the market that combine affordability with comprehensive coverage, protecting your pet doesn’t have to break the bank.

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