Top 5 Pet Insurance FAQs

1. Are pre-existing conditions covered?

Most insurers now cover pre-existing conditions if they're fully cured and your pet has been symptom-free for a specific period. The timeframe varies between insurers - Budget Direct requires 12 months symptom-free, while Hollard and RACQ require 18 months. Guild Insurance and Trupanion cover conditions that aren't medically related to previous issues, even with similar symptoms. However, chronic conditions like arthritis or diabetes remain excluded, as do bilateral conditions (if your dog had a cruciate ligament injury on one leg, the other leg wouldn't be covered).

2. What does pet insurance typically cost and cover?

Pet insurance premiums range from $180 to $4,500 annually, with significant variations based on breed - French bulldogs are particularly expensive to insure due to genetic complications. Most policies require an excess (around $100) plus a copayment of 20-35% of vet bills. Comprehensive policies cover surgery, hospitalisation and medicines, with annual benefit levels ranging from $3,000 to unlimited. However, dental care, vaccinations and preventative treatments are usually excluded, though routine care can be added as an optional extra for around $100 per year.

3. When should I buy pet insurance?

The ideal time is when your pet is young, preferably from three months old, before any health conditions develop. After eight years old, you'll have limited policy options, typically restricted to accident-only or seniors' products. Early purchase ensures better coverage and lower premiums, as prices increase with age. Getting insurance early also means you can benefit from routine care add-ons during the expensive first year when pets need desexing, microchipping and vaccinations.

4. How do claims work and what are the limitations?

Claims typically involve paying an excess per condition plus your copayment percentage, with the insurer covering the remainder. Many vets now offer electronic claiming for faster processing. However, policies often have sublimits - for example, a $12,000 annual limit might include only $300 for consultation fees or $1,000 for tick bite treatment. Some policies cap coverage for swallowing foreign objects to once or twice yearly, which can be problematic for pets prone to eating inappropriate items.

5. Is pet insurance worth it compared to saving money?

This depends on your circumstances and risk tolerance. Average annual vet expenses are estimated at $400 for dogs and $270 for cats before major treatments. Some pet owners prefer saving insurance premiums in a high-interest savings account, ensuring money is always available without claim rejection risks. However, insurance provides peace of mind for unexpected major expenses - one CHOICE supporter received over $35,000 in payouts for two boxers in 2017. Consider your pet's breed-specific health risks, your financial situation, and whether you'd rather budget predictably or risk large unexpected bills when making this decision.

By Daniel Graham

By Jodi Bird