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Is Pet Insurance Worth it? A Guide for Pet Parents

Wondering if pet insurance is worth it? Learn how it can save you money on vet bills, what it covers, and how to choose the right plan for your pet.

As a pet parent, you want the best for your furry family member. But what happens when an unexpected illness or injury leads to a hefty vet bill? That’s where pet insurance comes in.

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What is pet insurance & how does it help?

Pet insurance is designed to help cover the cost of veterinary care, so you’re not left facing a tough financial decision when your pet needs medical attention. Pet insurance helps to provide reimbursement for eligible vet expenses, helping pet owners with financial security when unexpected injuries and illnesses strike.

Costs of pet insurance premiums vs. pet insurance benefits

One of the biggest concerns pet parents have is whether the cost of pet insurance is justified. The reality is that veterinary care can be expensive, especially for emergencies, surgeries, or chronic conditions. Without insurance, you might have to pay thousands of dollars out of pocket, but with a policy in place, you can get financial support instead of bearing the brunt of these costs yourself.

The reality of unexpected vet bills

Even the healthiest pets can face sudden health issues—whether it’s an unexpected injury, a sudden illness, or a condition that appears later in life. 

Pet insurance can help you prepare for the unexpected, so your pet can receive the care they deserve without financial stress.

Here are some common claims that pet parents have faced and Petsy has helped pay:

  • $13,320.00 for gastro-intestinal and digestive system disorders
  • $6,243.42 for cat bite wound
  • $5,191.02 for neurological disorders
  • $6,000 for kidney failure
  • $4,520 for cruciate ligament rupture

*Based on Petsy settled claims between January 2024-2025. 

Cost of vet care vs pet insurance

One of the biggest questions pet parents ask is: Is pet insurance really worth it? To answer that, let’s look at the cost of veterinary care and how pet insurance can help you manage those expenses.

Common vet costs and what you might pay without pet insurance

Vet bills can add up quickly, especially when unexpected emergencies or chronic conditions arise. We spoke to a range of vet clinics around Australia and collated common treatment costs. Here’s what pet parents can typically expect to pay for common treatments.

For many pet parents, an unexpected bill of thousands of dollars can be overwhelming, making financial decisions about their pet’s care incredibly stressful. With no Medicare for pets, vet bills are out-of-pocket expenses for pet parents without pet insurance.

Vet costs can vary widely depending on the clinic, location, and type of treatment needed—there’s no set pricing across the board. If you’re worried about affordability, it’s always worth checking with different vet clinics in your area, as prices can differ from one postcode to another. Some clinics also offer payment plans or financial assistance options to help ease the burden of upfront costs.

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Treatment Estimated Cost (Without Insurance)
Emergency vet visit $250 – $500+
X-rays & diagnostics $300 – $3,000+
Surgery (e.g., foreign object removal) $3,000 – $10,000+
Ongoing medication for chronic illness $500 – $2,000+ per year
Cancer treatment $5,000 – $15,000+
ACL surgery $3,500 – $7,000+
Bite wound or laceration repair $800 – $2,500+

*These prices are indicative of average vet costs in Australia for 2025. Your actual expenses may vary based on your vet clinic and your pet’s individual needs.

Typical Vet Expenses with and without Pet Insurance

Veterinary care has advanced significantly, offering life-saving treatments and specialised care for pets. However, these advancements come at a cost, and unexpected vet bills can quickly add up. 

Without Pet Insurance:

When your pet needs medical care, you’re responsible for the full cost of treatment out of pocket. Here are some common expenses based on vet costs in Australia in 2025:

  • Allergic reaction or skin conditions: $250 – $1,000
  • Ear infections: $150 – $500
  • X-rays or imaging (MRI, ultrasound): $300 – $3,000
  • Emergency surgery (e.g., foreign object removal): $2,000 – $8,000
  • Cruciate ligament surgery (common in dogs): $3,500 – $7,000 per knee
  • Cancer treatment (chemotherapy, surgery, radiation): $5,000 – $15,000+

With Pet Insurance:

With pet insurance, you’re reimbursed for eligible expenses based on your coverage. Instead of worrying about how to cover a $5,000 surgery, for example, you might only be responsible for a smaller portion, depending on your policy’s reimbursement rate and deductible amount (called excess).

For instance, if your policy covers 80% of eligible vet bills after a $200 annual excess, a $5,000 surgery on an eligible claim would only cost you $1,160 out of pocket instead of the full amount. This makes pet insurance a valuable tool to help manage unexpected expenses while ensuring your pet receives the best possible care.

Pet insurance helps reduce out-of-pocket costs by reimbursing a percentage of your eligible vet bills, depending on your policy. Here’s more examples on how the difference can look in different scenarios:

Example 1: Emergency surgery for 
a swallowed object

A playful Labrador swallows a sock, requiring emergency surgery to remove it.

  • Total Vet Bill: $6,500
  • Without Pet Insurance: You pay the full $6,500 out 
of pocket.
  • With Pet Insurance (80% reimbursement after $200 annual excess): You might pay just $1,460 (assuming a $200 annual excess is applied to this claim).

Example 2: Managing a chronic condition (Diabetes in Cats)

A cat is diagnosed with diabetes and requires lifelong medication and regular vet visits.

  • Annual Vet Costs: $1,800
  • Without Pet Insurance: You cover the full $1,800 
each year.
  • With Pet Insurance (80% reimbursement): You may pay only $520 per year (after $200 annual excess).

What does Petsy Pet Insurance cover?

Petsy Pet Insurance is an insurance policy that reimburses 80% or 90% of vet costs for the treatment of your pet if they suffer an unexpected injury or illness (provided these occur after any applicable exclusion period has ended symptom free).

Our policy is customisable and you’ll be able to tailor the level of coverage, based on your preferences for the Benefit Percentage, Annual Limit, Annual Excess, whether or not you’d like Optional Extra Benefits (if your pet is less than 3 years old) and whether or not you’d like to include costs of Vet Consultations for your cover.

You get to see a summary of the cover when completing an online quote/application and have the option to select a preferred start date. After making the payment, you’ll receive a confirmation of cover and your policy documents by email.

Our commitment to transparency means that you’re fully informed about your coverage. For added peace of mind, we offer a complimentary Pre-Existing Condition Assessment for all our members. This includes collecting your pet’s vet history upfront which helps to fast-track any future claims and we’ll also let you know whether there are any pre-existing conditions noted in their medical history that might affect your ongoing coverage.

Claims process is  quick and easy, and your vet can submit claims on your behalf. Approved claims are paid into your nominated bank account.

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What’s Not Covered? Understanding Exclusions in Pet Insurance

Certain Conditions & Treatments

Some treatments and conditions aren’t covered, as explained below :

  • Brachycephalic Obstructive Airway Syndrome (BOAS) is not covered unless you’ve submitted and had a BOAS application form approved.
  • Specialised therapies (such as hydrotherapy or acupuncture) are only covered if you’ve added on Optional Extra Benefits to your Petsy Pet Insurance policy.
  • Experimental treatments, elective procedures, and breeding-related treatments are excluded.

Certain Types of Vet Costs

  • Emergency vet costs are covered if your pet ran into an unexpected injury or illness after the exclusion periods ended on your policy and it’s not a pre-existing condition. If it wasn’t a true emergency but you visited an emergency clinic, your claim may be adjusted to reflect the cost of treatment at a regular vet during normal hours.
  • Medications must be approved for use in Australia (or New Zealand if on a trip shorter than 60 days).
  • Medications must be approved for use in Australia (or New Zealand if on a trip shorter than 60 days).

Routine & Preventative Care

Petsy Pet Insurance is designed for unexpected health issues, not everyday care. That means it doesn’t cover:

  • Regular vet check-ups and annual health exams
  • Vaccinations
  • Flea, tick, and worm prevention
  • Grooming, inacluding ear cleaning
  • Food, prescription diets, and supplements

General Exclusions

Like most types of insurance, pet insurance won’t cover:

  • Vet costs due to neglect, mistreatment, or not following vet advice
  • Vaccinatable diseases if your pet wasn’t up to date on vaccinations
  • Epidemics, pandemics, or natural disasters
  • Acts of war, civil unrest, or nuclear events

For a fuller list of exclusions, please refer to “The Summary of Exclusions” in the Product Disclosure Statement. 

Pre-Existing Conditions

If your pet showed signs of an illness or injury before your policy started (or during waiting or exclusion periods), that condition won’t be covered. This is why it could be ideal to get insurance early before any issues arise.

Before purchasing pet insurance, it’s important to read the policy details carefully so you know exactly what’s covered and what’s not. Every policy has exclusions, waiting or exclusion periods, and limits that can affect your coverage. Understanding these upfront helps you avoid surprises when you need to make a claim, ensuring you choose the right plan for your pet’s needs and your budget and a more seamless pet insurance experience. The policy details are contained in the Product Disclosure Statements.

Why pet insurance matters: key benefits for pet parents

Setting up a pet insurance policy early can also help to provide coverage for long term and chronic conditions or if you own a breed that’s prone to developing hereditary conditions.

Peace of mind for pet parents

Pet insurance provides valuable financial protection against unexpected vet bills, helping you manage the cost of emergencies, illnesses, and long-term conditions. Instead of worrying about how to afford treatment, you can focus on getting your pet the best veterinary care without financial stress. Having coverage also gives you peace of mind, knowing you’re prepared for life’s surprises—whether it’s an injury, sudden illness, or other unexpected medical conditions. With pet insurance, you can make decisions based on your pet’s health, not just your budget, ensuring they get the care they need when they need it.

As pet parents, we want to do everything we can to keep our pets safe and healthy. Unexpected illnesses and injuries can happen at any time, and the last thing you want is additional financial stress dictating your pet’s treatment options. Pet insurance provides a financial safety net and instead of worrying how to pay for an emergency vet visit, you can make decisions based on what’s best for your pet. Whether it’s a minor issue or a more serious medical condition, you can have the confidence that you would be more financially prepared.

Common myths about pet insurance

“It’s too expensive.”

Some pet parents assume pet insurance is costly, but when compared to unexpected vet bills, it can actually save you money in the long run. Emergency treatments, surgeries, and ongoing care for chronic conditions can add up to thousands of dollars. A pet insurance policy helps manage these expenses, ensuring you’re financially prepared for tomorrow’s unknowns. With the range of policies available, there are also options to adjust the policy to help suit your budget. Petsy Pet Insurance offers a customisable policy without sacrificing the number of conditions covered and without sub-limits attached to the conditions you can claim.

“I don’t need it because my pet is healthy.”

While your pet may be in perfect health today, injuries and illnesses can occur at any time. From sudden injuries like broken bones or allergic reactions all the way to illness conditions that develop over time, medical costs can quickly escalate. Getting pet insurance early helps ensure coverage before issues arise, allowing you to maximise on coverage for the future.

“All policies are the same.”

Not all pet insurance plans offer the same level of coverage. Some may exclude certain conditions, have different reimbursement rates, or limit coverage for chronic illnesses. That’s why it’s important to read the Product Disclosure Statement and compare policies carefully, looking at what’s covered, exclusions, and benefits, so you can choose a plan that best suits your pet’s needs.

How to choose the right pet insurance plan

Finding the best pet insurance for your furry friend involves more than just picking the first policy you see. Here’s what to consider when comparing plans:

Coverage

Look at what’s included, such as injuries and illnesses and any specific conditions that you’re concerned about for your pet’s breed. Check if the policy includes sublimits on the conditions you can claim. 

Waiting or Exclusion Periods

When you start a new policy, there are different exclusion periods that need to pass symptom free before your coverage starts. Check these timelines when starting a new policy. 

Benefit Percentage

Policies vary in how much of the vet bill they cover per claim which can range between 70% to 90% across different providers. Petsy Pet Insurance offers two benefit percentages: 80% and 90%.

Annual Limits

The annual limit you choose determines how much you can get reimbursed each policy period (every 12 months). Petsy Pet Insurance has no sublimits on claimable conditions, so you can claim up to the full annual limit you choose.

Excess Options

Check the annual excess and any applicable payout limits to ensure they align with your budget and needs. There are different excess types which can range from per condition, per claim or annual excess options that can determine your overall out of pocket costs.

Exclusions

Understand what’s not covered on the policy is just as important as understanding what is, such as pre-existing conditions or specific breed-related health issues, along with any exclusion or waiting periods that apply to the policy.

How to compare different providers

When comparing different pet insurance providers, read through the Product Disclosure Statements or PDSs to review coverage details. Reading customer reviews and testimonials can also help to obtain real world insights, and choose a provider with a straightforward claims process for faster reimbursements. Additionally, you can check if your preferred vet is covered or if there are any network or claim restrictions.

By doing your research and comparing policies carefully, you can choose a pet insurance that is most suitable for you and your pet so that your pet can receive the care they need when needed most.

Tips for finding the most suitable policy for your pet include:

  • Sign up early before health issues arise to maximise coverage
  • Choose a policy that works best for your pet’s breed, age, and potential health risks.
  • Consider add-ons like dental illness, specialised therapies or behavioural conditions.
  • Make sure the plan offers flexibility and you’re happy with the claims process the provider offers.
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Petsy Pty Ltd (ABN 54 633 343 058, AR 1277359) (‘Petsy’) distributes and promotes Petsy Pet Protection Plus (formally Petsy Pet Insurance), Petsy Puppy Protection Plus and Petsy Kitten Protection Plus as an authorised representative of ThePetInsuranceCompany.com.au Pty Ltd (ABN 38 620 795 735, AFSL 536651) (‘ThePetInsuranceCompany.com.au’). ThePetInsuranceCompany.com.au is an underwriting agency acting under a binding authority as an agent for the insurer; Pacific International Insurance Pty Limited (ABN 83 169 311 193, AFSL 523921) (‘Pacific).
In all aspects of arranging this product, Petsy and ThePetInsuranceCompany.com.au act as an agent of Pacific and not as your agent. Any advice contained in this email is general advice only and has been prepared without taking into account individual objectives, financial situation or needs and you should consider the appropriateness of any such advice, the Product Disclosure Statement (‘PDS’) and the Target Market Determination (‘TMD’) available via http://www.petsy.com.au or by calling 1300 952 790 before making a decision to acquire, or to continue to hold, the product. Terms, conditions, limits and exclusions apply. Please refer to the PDS.

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© Copyright 2024 Petsy Pet Insurance 

Specified Conditions includes:

  • Cruciate ligament damage
  • Intervertebral disc disease
  • Hip dysplasia
  • Patella luxation
  • Elbow dysplasia
  • Cherry eye
  • Entropion
  • Ectropion,
  • Osteochondritis dissecans (‘OCD’)
  • Lumps

Lumps means the protuberance or localised area of swelling or unusual growth that can occur anywhere on or in the body including tumours, warts, cysts, growths, mucoceles, haematomas and abscesses.

You can apply to reduce the 6-month exclusion period for Specified Conditions by using our request for Waiver Form. Simply take this form to your next vet visit and submit the completed form back to [email protected] within 14 days of the visit.

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Optional Extra Benefits

During the application process You will be provided with the option to include Optional Extra Benefits that cover certain conditions and Treatments which are not otherwise covered under the Policy.

The Optional Extra Benefits are:

Alternative Therapies, Behavioural Problems, and Dental Illness.

Examples of Alternative Therapies: Acupuncture, physiotherapy, hydrotherapy.

Examples of Behavioural Problems: Excessive licking, fur pulling, pacing and destructive chewing.

Examples of Dental Illnesses: Dental diseases, gingivitis, periodontal disease.