What is pet insurance?
Pet Insurance is a form of insurance available to pet owners to help cover their pet for accidental injuries and illnesses, by reimbursing a portion of the veterinary costs to treat their pet.
Pet insurance acts as a financial safety net, helping cover unexpected veterinary costs if your pet needs treatment. Some medical expenses can run into the tens of thousands, and having a pet insurance plan can significantly reduce the financial burden and stress during difficult times.
History & evolution
Insurance for animals began in Sweden in 1890, when Claes Virgin wrote the first policy for horses and livestock. The pet insurance policy for pets like cats and dogs was first sold in Britain in 1947. By 2009, Britain had one of the highest rates of pet insurance, second only to Sweden.
In the U.S., pet insurance started in 1982, with the first policy issued to the famous TV dog, Lassie.
Pet insurance works a bit differently than health insurance for human — it’s more like property insurance. After your pet receives care, you pay the vet and then send a claim to your insurance company to get reimbursed.
One fun fact: Since 2009, the Hambone Award has been given each year to a pet with the most unusual insurance claim. Its name comes from an unnamed dog who reportedly was trapped in a refrigerator and suffered from mild hypothermia, eating an entire holiday ham while waiting for rescue.
Pet insurance policies can have different coverage limits: some have limits per condition, some have limits per condition per year, and others have one overall limit per year. This affects how much you can claim if your pet needs multiple treatments.
Pre-existing conditions are often not covered, which is why it’s recommended to insure pets early before any health issues arise.
There’s usually a period of time when you can’t claim for accidents or illnesses right after getting a policy. This ensures coverage is for new injuries or illnesses that show up after you’re insured.
Pet insurance today
Today, pet insurance in Australia is becoming increasingly popular as more pet parents seek to protect their furry companions from unexpected vet bills. With a variety of pet insurance policies available, coverage can range from basic accident-only policies to more comprehensive options that include illnesses, routine care, and wellness treatments. Many Australian insurers now offer flexible plans with different benefit limits and extras, giving pet parents the ability to choose coverage that fits their budget and needs.
Understanding Pet Insurance
How pet insurance works: A quick overview
Pet insurance helps cover the cost of unexpected vet bills. After your pet receives care, you pay the vet, submit a claim, and get reimbursed based on your policy’s coverage. Policies usually cover accidents, illnesses, and sometimes routine care, depending on the plan. There are limits to how much you can claim, and pre-existing conditions are generally not covered. Most policies also have a waiting period before coverage kicks in for certain conditions. Pet insurance gives peace of mind by helping to manage unexpected medical costs for your pet.
In Australia, pet insurance typically offers several types of coverage. These can vary among different providers, but the main types include:
Accident-Only Cover: This only covers costs related to injuries from accidental injuries, such as broken bones or wounds. It doesn’t cover illness-related expenses.
Accident and Illness Cover: This is a more well-rounded coverage option that covers both accidental injuries and illnesses. It can include coverage for a wide range of conditions, from minor issues, like infections and allergies, to more serious diseases like cancer.
Accident and Illness Cover with add-ons: Some plans also cover routine care treatments like vaccinations, desexing, and flea and tick treatments, along with accidental injuries and illnesses.
Routine Care: Can be offered as an optional add-on, which helps to cover some costs for preventative care and wellness treatments, such as vaccinations, microchipping, and desexing. The coverage limits for these treatments are usually lower than for other claimable conditions.
Key insurance terms you need to know
Common insurance terms you’ll come across when comparing different providers.
Annual Limit: The maximum amount your pet insurance will pay for all claims in one year. Once this limit is reached, you’ll need to cover any additional costs yourself until the next policy year.
Benefit Percentage: The percentage of each eligible vet bill your insurance will cover. For instance, if your benefit percentage is 80%, the insurance will pay 80% of the bill, and you’ll pay the remaining 20% (after any excess is applied).
Excess: The amount you have to pay out of pocket before your insurance starts covering costs. It can be a fixed amount per claim, per condition or per policy year.
Sub-limits: Specific limits under your policy for certain types of treatments or conditions. For example, there might be a sub-limit placed on high cost treatments.
Exclusion Periods (Waiting Periods): The period of time after you start your policy during which you can’t make a claim for treatments. If your pet gets sick or injured during this period, the costs won’t be covered by the insurance.
Pre Existing Conditions: Any signs or symptoms of conditions your pet had before your insurance policy started, including during any exclusion periods. Pre-existing conditions are generally not covered by pet insurance policies.
Differences between pet insurance and human health insurance
While both health insurance and pet insurance help cover medical costs, they work a bit differently. Health insurance for humans usually pays the doctor directly, while pet insurance typically requires you to pay the vet upfront, then submit a claim for reimbursement. Pet insurance is more like property insurance, focusing on accidents, illnesses, and sometimes routine care, but it usually doesn’t cover pre-existing conditions or preventative care the same way human health insurance might. Additionally, pet insurance policies often have annual or per-condition limits on how much can be claimed.
Unlike humans in Australia, who are covered by Medicare for many healthcare costs, pets do not have a government healthcare system. Pet insurance works more like property insurance, requiring you to pay the vet upfront and then submit a claim for reimbursement. While health insurance for humans often covers a broad range of care through Medicare, pet insurance focuses on accidents, illnesses, and sometimes routine treatments. However, it typically doesn’t cover pre-existing conditions or offer the same level of comprehensive care that Medicare does for people, making pet insurance an important option to manage unexpected vet bills for pet owners.
Key considerations when choosing pet insurance
When choosing pet insurance, consider several key factors. First, think about your pet’s specific coverage needs and whether the policy allows customisation, such as adjusting the excess, annual limit, and benefit percentage. Next, evaluate the claims process: great customer service and a straightforward, quick claims experience can make a big difference in your overall pet insurance experience. Also, consider the costs —lower premiums could mean less coverage, and check for any payout limits on specific conditions. Finally, decide on the type of excess that works best for your budget.
Importance of pet insurance
Pet insurance plays an important part of responsible pet ownership. Caring for pets can be expensive and vet bills can quickly add up, especially in emergencies.
Pet insurance acts as a financial safety net, helping cover unexpected veterinary costs if your pet needs treatment. Some medical expenses can run into the tens of thousands, and having a pet insurance plan can significantly reduce the financial burden and stress during difficult times.
Pet Insurance for puppies and kittens
Starting your pet insurance when your pet is young and healthy could minimise the chances of your pet having any Pre-existing Conditions that may not be covered later. Insuring them early can help to ensure they receive extensive coverage without the worry of expensive vet bills.
Pet Insurance for older pets
If you’ve adopted an older pet, chances are your new friend will have at least one or two existing health issues, even if they’re fairly minor and under control. Older pets need extra love and attention and taking in an older pet means potentially bearing the high cost of caring for them as well. Whilst pet insurance can’t cover Pre-existing Conditions, it can still be a lifeline in avoiding potentially large vet bills and be your ticket to affording the level of care for any new health issues or accidental injuries that arise.
Setting Yourself Up for Pet Insurance Success
How to be prepared for emergencies
Emergencies can happen anytime, so it’s important to have a plan in place. Keep your vet’s contact information, a 24-hour emergency clinic contact details, and your pet insurance policy number in an easily accessible location. Ensure your policy covers emergency visits and have an emergency fund to cover upfront costs before your claim is processed.
Navigating vet visits with insurance
When visiting the vet, let them know you have pet insurance. Ask for detailed invoices and make sure you have all the necessary paperwork to submit a claim. Familiarising yourself with your pet insurance claim process so you’re across the information required to avoid delays.
After your pet has received treatment, you can usually ask your vet to submit the claim for you when you’re at the clinic, by providing your policy number or asking the clinic to submit the invoice or history through to your insurance provider.
Getting the most out of your policy
To make the most out of your pet insurance, understand what’s covered and what’s not. Staying organised with medical records and policy details can streamline claims assessment process. Regular vet check-ups can also help identify health issues early, reducing the risk of them becoming serious and avoiding expensive vet bills later on.
Petsy Pet Insurance
Established in 2019, Petsy is a leading pet insurance provider in Australia offering extensive coverage and exceptional service to pet owners nationwide. With a deep understanding of the needs and financial circumstances of pet owners, Petsy aims to deliver peace of mind and support during unexpected veterinary emergencies. Petsy is committed to transparency and providing innovative solutions that prioritise the well-being of our beloved pets.
We offer coverage up to $30,000 annually to help cover eligible vet bills for pet owners if their pet runs into an unexpected mishap, with no sub-limits on any of the conditions you can claim.
With Petsy pet insurance, pet owners can rest easy knowing that expenses for costly vet treatments (and more) can be reimbursed, allowing pet parents to focus on their pet’s well-being instead of the financial burden. It also minimises the need to make difficult choices about a pet’s treatments, due to financial constraints.
