Blog

Pet Insurance: Your Complete Guide

A brown dog and a ginger cat cuddling, with the text 'Pet Insurance' overlaid.

At Paws At Prospect Vet, we are strong advocates for pet insurance, witnessing first-hand the benefits and peace of mind it brings to our clients every day.

Why do we believe it’s so important, especially now more than ever? How does one even begin to navigate the selection of the right insurer and policy? We’ll dig into that for you. Plus, we’ll provide details on how Paws At Prospect Vet clients can apply for 30 days of FREE pet insurance!

Pet Insurance

As much-loved family members, it’s natural to want the best possible treatment when our pets are unwell. Without pet insurance, the costs can significantly impact the ability to afford necessary diagnostic tests, surgical procedures, and medical care, creating a difficult situation for everyone involved.

Upon receiving test results that confirm a diagnosis of a complicated or chronic health condition, our vets and nurses often immediately check to see if the patient is insured, and let out a collective sigh of relief if they are.

We experience the positive effects it has on our ability to give pets the best possible treatment and our clients’ ability to afford it. We receive no financial compensation or incentives for recommending pet insurance or mentioning particular companies; we simply just love it.

Why It’s Important Now

A cartoon-style illustration shows a smiling veterinarian in a white coat, light blue shirt, dark blue pants, and a light blue surgical cap with a white cross. The veterinarian is standing and gently placing a hand on the head of a small, brown terrier dog with a red collar and a gold tag. The dog is sitting and looking up at the veterinarian with a happy expression.

Veterinary medicine is continually advancing, with increased access to sophisticated surgical equipment and procedures, advanced medical imaging, and a growing number of specialist veterinarians. We commonly refer to specialists in areas such as surgery, dermatology, ophthalmology, internal medicine/endocrinology, pathology, oncology, critical care/emergency, radiology, neurology, anaesthesia, cardiology, and dentistry.

As you can imagine, these improvements in veterinary care and the use of human-grade equipment like MRI, CAT scans, and ultrasound (among many others) come at a higher cost.

Pet owners are increasingly treating their beloved pets as family members and are willing to do more for them. Generational trends are also having an impact on veterinary care. A report by Finder found that, on average, Millennials (Gen Y) are prepared to spend $15,000 to save their pet’s life, compared to just $2,500 for Baby Boomers.

Our increasing love for our pets and the desire to treat them as family members more than ever before, along with the rising costs of veterinary medicine, make pet insurance a worthwhile consideration. Quality pet insurance offers comfort in knowing that you can afford the very best treatment should the need arise, removing financial strain from your pet’s healthcare decisions.

How much different generations would spend to save their pet’s life:

Only Pay The Gap

The pet insurance industry has also changed in recent years. Initially, you had to pay all your veterinary bills upfront and submit a claim to your insurer by filling out a paper form, getting your vet to complete their section, posting it in the mail, and waiting weeks for reimbursement – leaving you out of pocket in the meantime.

However, thanks to the innovation of GapOnly, that has all changed. GapOnly is a payment service that works with selected pet insurance brands, allowing you to access your pet insurance benefit right away. Your claim will be assessed on the spot, and if approved, you will only pay the gap amount (the portion not covered by insurance).

Don't Wait Too Late

We often hear the sentiment, "I wish we had gotten pet insurance," after a major surgery, or the regret that they didn't take out insurance before their pet developed a chronic health condition.

While your pet may initially appear young, fit, and healthy, pet insurance may not seem necessary. However, securing coverage at this stage offers valuable future protection. Not to mention, accidents and illness can happen at any age!
By insuring your pet early in life, you establish a financial safeguard for potential health needs that often arise as they age. Consider it an investment in their long-term well-being, ensuring that support is available when it is needed the most.

Insuring your pet when they are young or when you first bring them home also allows you to maximise your coverage, as they are less likely to have developed pre-existing health conditions. Even if your pet already has a pre-existing condition that won't be covered by insurance, don't rule out insurance entirely. They can still be covered for any unrelated illnesses or accidents.

Of course, some pet owners with insurance may rarely need to use it and feel like they didn't "get their money's worth". This probably means they have had a healthy and accident-free pet... which is a positive outcome! Insurance provides peace of mind that you are covered, even if you hope never to need it, similar to our own health or car insurance.

Quick Maths Break

- An owner is willing to pay $15,000 to save their pet's life
- With a 90% rebate, pet insurance would cover $13,500
- The average annual cost of pet insurance is $1,233
- The insurance has effectively paid for itself for 10 years!

Hypothetical based on statistics from Finder

Different Policies

Australia has numerous pet insurance companies, and the list is constantly expanding. Some companies offer a single coverage tier, while others provide variations in coverage and levels with the option of additional add-ons. The most common levels are:

Accident Only:​​ True to its name, this cover applies only to injuries caused by accidents and does not include coverage for illnesses or diseases. This is the most basic form of pet insurance you can get.
Accident & Illness: Accident and illness insurance protects your pet against injuries and a wide spectrum of health issues and diseases. Encompassing conditions like cancer, infectious diseases, hereditary conditions, and various ailments affecting the ears, eyes, spine, and skin.
Comprehensive: Comprehensive policies include accident and illness as well as routine care. Depending on the insurer, these procedures may include vaccinations, worming treatments, dental care, teeth cleaning, desexing, microchipping and even flea and tick control.

 

Compare Companies

There are many pet insurance companies and policies available with varying quality and coverage. You will need to do some research to determine which one is best for you and your circumstances.
But how does one even begin to navigate the selection of the right insurer and policy? How to know what to look for? We created a list of considerations when researching pet insurance to answer just that:

What are the payout limits? Some insurers have annual payout limits ranging from $6,000 to $30,000, while others have no limits. Be aware that specialist procedures like surgery, testing, imaging, and critical care can quickly reach these maximums.
Are there sublimits? Sublimits are the maximum amount they will cover for specific conditions. For example, some may only cover $3000 of cruciate repair surgery, even if your annual payout limit is $25,000. Other companies have no sublimits.
How much will they cover? What percentage of eligible vet bills will be reimbursed? This usually ranges from 80% to 100%.
How does the excess work? Is the excess payable annually per condition/body part, requiring you to pay it each year? Or is it a lifetime excess, meaning once you only pay it once? Can you choose the excess amount you want to pay to suit your budget?
What are the exclusions? Do they have exclusions for breeds or age? What about bilateral conditions, for example, if they require surgery on one kneecap, will they cover the other kneecap for the same condition in the future? Are there certain services that they don't cover? Some companies will cover pre-existing conditions that have been considered as "cured" from a veterinarian.
What are the additional therapies covered? Do they offer options for dental care, behaviour management, rehabilitation, supplements, prescription food, for example?
Does the coverage change? Will premiums increase with age? Will payout amounts or benefit payout % decrease for aging pets? Will the insurance premium increase because of newly diagnosed conditions?
Do they pay the benefit immediately? What is needed to submit a claim? Can you claim on the spot, only paying the gap? Or do you pay the full cost upfront and claim later?
What about pre-approval for a claim? Is it easy to find out if and how much of an expected veterinary cost will be covered? Some companies provide an online application that even your vet can submit on your behalf.
When are they available for support? Emergencies can happen day and night. Some insurance companies are available 24/7 to answer questions and assist with submitting claims and pre-approvals.
What are the waiting periods? How long after signing up to a policy do you have to wait until you can claim? Are there different waiting periods for different conditions?

Getting Started

Ready to compare pet insurance companies against each other? GapOnly have a list of pet insurers that can provide benefit payment on the spot: GapOnly Partners

For comparative research on more companies and policies, visit Choice to filter your search and view multiple policies side-by-side. Choice is the least biased comparison website because, unlike others, they don't receive payment from insurers to boost its ranking. Click to Visit Choice

If you want some of the hard work done already, Forbes ranked their picks for the best comprehensive pet insurance policies for March 2025. Please ignore the section that says 'Featured Partners' – that is an advertising space, and those insurers have paid to be there. You can view the article here: Forbes Article

Try Free For 30 Days

As Trupanion partners, Paws At Prospect Vet can assist you in taking advantage of the FREE 30 days pet insurance offer. Simply sign up within 24 hours of a health examination.

  • 30 days free, no obligation to continue
  • No payment needed and no lock-in terms
  • No waiting periods on activation – immediate coverage

Learn more about the offer here

 

Need an Appointment