Pet insurance can give you peace of mind if something goes wrong, but policies can differ substantially in coverage and price
Our experts independently compare policies from almost 30 insurers, then score them based on their cover and how much you’ll pay out of pocket
Policies from brands such as PetsOnMe, Petbarn and Kogan ranked the lowest in our comparison based on analysis of 30 different features
Bringing a new pet into your family isn’t a decision to be taken lightly – it’s a significant responsibility, both logistically and financially.
With some breeds fetching prices in the thousands of dollars, you’ll already have spent a small fortune before your new puppy or kitten has even come home.
And whether you’re picking up a bitser from a shelter or one with an impeccable pedigree, you just can’t predict what kind of mischief your pet may get up to, or what illnesses might lie ahead for your new family member.
Pet insurance may give you some peace of mind but, as with any insurance, the devil’s in the detail. Trying to understand what’s covered and compare policies can be like herding cats.
There can be exclusions on certain conditions and illnesses, limits on how much you can claim, decreasing cover as your pet ages, rules around pre-existing conditions, and more. So if your dog is as sick as … well, a dog, you might have to pay more than you’d expect.
If you’re on the hunt for the right insurance for your pet, you’ll be barking up the wrong tree with these policies.
How we rank pet insurance policies
Our experts compare policies from almost 30 insurers, then score them based on their cover and how much you’ll pay out of pocket.
The CHOICE Expert Rating is our overall score and is made up of the cover score (which makes up 70%) and the out of pocket score (30%).
When assessing each policy’s cover, we look at 30 different features, including the range of conditions and treatments covered and how easy it is to settle a claim.
The out of pocket score is based on the maximum annual limit available, as well as the options for how much you can pay as an excess and how much of the bill is covered.
“The policies in this list are the lowest-scoring ones we’ve reviewed for a range of reasons,” says CHOICE insurance expert Daniel Graham. “Some have a lot of exclusions or low benefits, while others are unnecessarily complex.”
“We suggest you avoid these and look for a policy that ranks highly in our review. It’s also worth remembering that pet insurance isn’t always a necessity – another option is to consider self-insurance, if you can afford to keep money aside in a savings account for when you might need it.
“If buying a policy, though, don’t forget to check the PDS (product disclosure statement) for a policy to make sure you know exactly what you’re covered for. Having a sick or injured pet is stressful enough without having to foot a much larger bill than you thought you would.”
These are the policies that our experts say aren’t the best bet for your pet.
Text-only accessible version
Pet insurance policies to avoid
PetsOnMe Accident Plan CHOICE Expert Rating: 30%
Petbarn Core CHOICE Expert Rating: 35%
Petbarn CorePlus CHOICE Expert Rating: 37%
Kogan Indoor Cat Cover CHOICE Expert Rating: 39%
PetsOnMe Accident Plan
CHOICE Expert Rating: 30%
Cover score: 30%
Out of pocket score: 29%
“This is a very basic accidental injury plan, with a low annual limit of just $5000, which won’t go far if your pet needs major surgery or has several incidents in the one year,” says Daniel.
“It also doesn’t cover illness, or cruciate ligament injury, which is a fairly common injury in high-energy dog breeds.”
The company’s claims handling process is less than ideal, too. You’ll need to pay the whole vet bill upfront and then the insurer will pay you back once the claim has been processed.
“Some pet insurers have invested in making their claims process as frictionless as possible,” says Daniel. “There are brands that now offer direct-to-vet payments, and in some cases can settle a claim before you leave the vet.”
“With this policy, you’ll need to be able to cover the whole vet bill in the first place, which could leave you in a tricky position if you don’t have the money on hand at the time.”
The way Petbarn has structured these policies is a bit of a dog’s breakfast. They look great at first glance but once you scratch the surface, they’re less impressive.
While Core and Core Plus cover up to 90% of your vet expenses, this isn’t for the life of the pet. Petbarn will only cover up to 65% of the bill after your pet turns eight – which is exactly when your pet’s medical needs are likely to increase.
And although the company’s ads say that there’s “no overall annual policy limit”, there’s a catch.
“Most policies have an annual limit, which is the total amount you can claim for the policy period,” says Daniel. “Instead of this, Petbarn has what it calls ‘annual condition limits’. This means that every condition has its own sublimit you need to keep track of, from poisoning to pancreatitis.”
“For the Core policy, the condition limit is just $500; for Core Plus, it’s $1000. Once you’ve claimed up to that limit, your pet is not covered for that condition until your renewal.”
“So, while it’s technically not an annual policy limit, it’s a significant cap on what you can claim.”
We think Petbarn has designed some needlessly complicated policies. You shouldn’t have to break out the abacus to figure out how much of your vet bill will be covered.”
Daniel Graham, CHOICE insurance expert
If your pet is badly injured or develops a complicated medical condition, the costs can run into the thousands – and even tens of thousands – of dollars. If your insurance only covers a maximum of $500 or $1000 of that cost, your wallet will take a big hit.
Not quite what you expect to happen when you take out pet insurance, right?
These policies also don’t cover conditions that are pretty standard in other pet insurance policies: cancer, ticks and external parasites, dental illness, hip or elbow dysplasia and behavioural conditions. There’s no cover for cruciate ligament injury with the Petbarn Core policy, but Core Plus does cover this.
Petbarn’s top-level policy, Total Cover, scored just six points higher than these lower-tier policies.
“Petbarn’s Total Cover policy doesn’t have an annual policy limit either, but it does have different sublimits for more than 30 conditions, so you’ll need to check the list to see if and how your pet’s particular treatment is covered,” says Daniel.
“If a covered condition is not on that list, then it falls under a $1200 ‘everything else’ sublimit, which looks a little bit like an annual policy limit. We think Petbarn has designed some needlessly complicated policies. You shouldn’t have to break out the abacus to figure out how much of your vet bill will be covered.”
There are lots of reasons to keep your cat indoors: they won’t get into scraps with other cats, they’re less likely to pick up transmissible illnesses from other animals, they can’t wander onto the road and they won’t kill native wildlife.
But does less risk mean you need less cover? Not necessarily.
Kogan’s Indoor Cat Cover only has a $5000 annual limit, which is very low, and as your cat ages you’ll get less money back when you claim.
It only covers your cat for specific conditions including cancer, arthritis and heart disease, and there’s no option for dental illness cover.
“This policy also doesn’t include any cover for accidental injury even though indoor cats can still injure themselves,” says Daniel.
“And while the policy doesn’t actually require you to keep your cat inside, you’re essentially not covered if your cat gets out, since it doesn’t cover things like tick paralysis or snake bite, which are usually included in other insurance policies.”
This policy’s $8000 annual limit might be more generous than some others on this list, but it’s still quite low compared to the majority of pet insurance policies on the market.
It also doesn’t give you comprehensive cover – so there are lots of illnesses and injuries that Kogan won’t pay for, meaning you’re up for the full cost if your pet needs treatment for them.
Your pet won’t be covered for cancer or heart conditions, which is noteworthy: almost all pet insurance policies cover these. They’re also pretty common illnesses, so it makes sense to have insurance for them.
Cover for other illnesses and injuries is also hit-and-miss with this policy. It only covers a specific list of injuries (including snake bites and motor vehicle incidents) and illnesses (such as poisoning and tick paralysis).
It also doesn’t cover dental illness, and there’s no option to add it on – which most other insurers give you the option to do.
“We recommend looking for comprehensive cover, where conditions and treatments are covered unless specifically excluded, instead of the other way around,” says Daniel.
One way to decrease how much you pay in insurance premiums is to choose a higher excess – so you’ll have to pay more to make a claim, but you’ll pay less for your insurance week to week.
With Kogan Pet Primary Cover, though, the only options are a $0 excess or a $50 excess, so there’s not much wiggle room to bring your costs down.
Overall, this policy doesn’t give you great cover and, unless you’ve gone through the PDS with a fine-tooth comb, you could find yourself paying out more money than you thought you would if your pet needs treatment. Read the full Kogan Pet Primary Cover review.
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Alice Richard is a Content creator and marketer. Alice writes on a range of topics, from health insurance to heaters and BBQs to bargain-hunting, always with the aim to help consumers find the best products to buy, and which to avoid.
Alice can take vast amounts of data from CHOICE product tests and turn it into content that is easily digestible and fun for readers.
Alice has a Bachelor of Arts from the University of Queensland. LinkedIn
Alice Richard is a Content creator and marketer. Alice writes on a range of topics, from health insurance to heaters and BBQs to bargain-hunting, always with the aim to help consumers find the best products to buy, and which to avoid.
Alice can take vast amounts of data from CHOICE product tests and turn it into content that is easily digestible and fun for readers.
Alice has a Bachelor of Arts from the University of Queensland. LinkedIn
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