Pet Insurance - Cover for your furry friends
Written and accurate as at: Oct 03, 2017 Current Stats & Facts
What is pet insurance?
Pet insurance usually only covers cats and dogs, but some insurers cover other animals as well. Most policies have limits on what they will pay out each year and for each condition. If your vet bills are more than the policy limit, you'll have to pay the difference.
This type of insurance needs to be renewed each year, so check the policy terms and conditions before you renew, as these can change. Also, keep in mind that premiums can increase from year to year.
What does pet insurance cover?
Pet insurance policies typically cover:
- Accident only - covers vet costs where your pet is involved in an accident.
- Accident and illness - covers vet costs for accidents as well as illnesses.
- Accident and illness plus routine and preventative care - covers routine vaccinations and worming treatments as well as vet costs for accidents and illnesses.
Pet age limits
Some new policies are not available for older pets (between 7 and 9 years of age and above, depending on the policy terms). Once your pet reaches a certain age, even if you already have pet insurance, you may not be able to switch to another insurer or brand.
Breeds make a difference
Insurance is sometimes not available for certain breeds, or the premium may be higher to cover the potential health risks of that breed.
Excess and additional costs
Many policies require you to pay an excess when you make a claim. You may also have some out-of-pocket vet expenses if the policy only covers costs up to a specified limit. For example, if the vet fee is $1,300 and the policy only covers 80% of this (that is, $1,040), then you may need to pay the difference of $260. Check your policy to understand the excess and how much the insurer will cover.
Even if the policy appears to cover 100% of some costs, check the fine print as the age of your pet may reduce the amount you are covered for.
ASIC's media release on curbing misleading pet insurance advertising highlights the importance of reading the fine print on your policy and explains the changes pet insurers have made to their promotions and advertising.
What pet insurance doesn't cover
Pet insurance policies have a number of exclusions.
These are the things you are not covered for. Some typical exclusions are:
- Illness or injury from pre-existing conditions (including conditions before the policy was purchased)
- Bilateral conditions (pre-existing conditions that affect a body part that has a 'left' and 'right' version, such as eyes, ears, hips and legs)
- Vet costs for elective treatments (like orthodontics or de-sexing) or routine care (unless specific additional cover is purchased for this)
- Treatment for any illnesses that occur during the policy's waiting period
- Treatment for diseases for which there is a known vaccine (such as kennel cough). (Some policies may pay if your pet has been vaccinated, but others may not.
- You can find out what the exclusions of a policy are by reading the product disclosure statement (PDS).
See ASIC's media release about pet insurance and disclosure
Making a claim on your pet insurance
You will probably need to pay your vet bill up-front and then claim for reimbursement from your pet insurer. Although some vets may agree to get a deferred payment from your pet insurer and only ask you to pay the difference up-front.
Smart tip
Make your claim quite soon after you pay the vet bill. Your insurer may charge a penalty fee if you don't claim within a certain time.
You will need to provide evidence of the vet expenses you are claiming and will usually also need to include a full veterinary history with your claim. You may be able to submit your claim electronically at the vet, along with your pet's medical history.
If your pet dies and you have already made a claim during the policy period, some policies may require you to keep paying premiums for the remainder of your policy period. Be sure to check the policy's PDS before you sign up.
Source: Moneysmart.gov.au