Types of pet insurance

An accident-only policy is the most basic level of cover you can get for your pet. If your furry companion swallows a foreign object or gets hit by a car, this type of pet insurance can help cover a portion of the treatment costs.

Some common injuries covered by accident-only cover can include:

• Burns and electrocution
• Bone fractures
• Bite wounds and fight wound abscesses
• Snake bites
• Allergic reactions to insect or spider bites.

Accident-only cover might be suitable for pets that have been de-sexed, vaccinated and wormed and have no foreseeable veterinary visits for any genetic predispositions, such as dysplasia or heart disease. Mischievous breeds and older pets that can’t be insured for illnesses may benefit from this policy as well.

Accidents and illness pet insurance can reimburse you for a portion of the treatment costs if your pet is injured in an accident or experiences an illness, as specified in the PDS. Illnesses typically covered under this type of pet insurance policy include cancer, skin conditions and infectious diseases (unless these are declared as pre-existing conditions).

Accident and illness pet insurance could cover the treatment costs for things like:

• Arthritis
• Wounds, bites and lacerations
• Skin, ear and eye conditions
• Gastrointestinal problems
• Cancer
• Swallowed objects
• Snake bites
• Allergic reactions to insect bites
• Bone breaks and fractures.

This level of cover is recommended for all pets that have been de-sexed, vaccinated and wormed and that may have genetic predispositions to certain illnesses. You can benefit the most from this policy by getting covered before your pet starts experiencing symptoms of illness or disease.

If your pet has already started experiencing symptoms, has a chronic condition before you purchase cover or the waiting period is over, the diagnosis may be classified as a pre-existing condition and you may not be covered.

As the highest level of pet cover, comprehensive pet insurance can provide benefits towards treatment costs for a variety of illnesses and accidental injuries that your pet may experience. Coverage and benefits can vary across policies and insurers, but some conditions commonly covered by comprehensive pet insurance can include:

• Cancer
• Skin, eye and ear conditions
• Broken and fractured bones
• Wounds, abscesses and lacerations
• Tendon and ligament injuries
• Tick paralysis
• Snake bites
• Congenital conditions.

Some insurers will allow you to add optional extras to your policy to cover a portion of your pet’s routine care expenses, such as check-ups, dental care or even behavioural training. Keep in mind that adding these optional covers will increase the premium you pay for your pet insurance.

Routine care cover can include benefits for:

• Vaccinations
• De-sexing
• Microchipping
• Dental care
• Worming
• Flea and tick treatment.

Depending on whether your policy offers this option, routine care cover is suitable for all pets, particularly puppies and kittens requiring initial and booster vaccines, de-sexing, microchipping and more. It may also be ideal for older pets who need regular check-ups and breeds susceptible to parasitic infestations.

Most policies will cover 60-90% of the veterinary bill − this is known as the benefit percentage − leaving you to pay the difference and the excess. Your cover and benefit percentage may change depending on which policy you choose for your pet.

Some insurers may reimburse you after you pay your vet upfront and submit a claim to them for the cost, while others will pay your vet directly. Some insurers will apply the policy excess before the benefit percentage is applied, while other insurers will apply the policy excess after.

Most insurers begin covering accidents immediately after you purchase your policy. However, there is usually a waiting period for illnesses, health conditions and routine treatments. Most waiting periods are 30 days, but this can vary, depending on your specific pet insurance cover, insurer and the service or treatment you want to claim.

Exclusions vary between insurers, but most policies won’t cover:

• Pre-existing conditions
• Pregnancy and obstetrics
• Transplants
• Prosthetics
• Elective treatments (non-essential medical treatments)
• Treatments for diseases with a known vaccine.

Be sure to check the exclusions in your policy’s PDS.

Most insurers have a cut-off age limit for when you can get pet insurance for your companion. This may vary from insurer to insurer but, generally, if your pet is younger than six weeks or older than nine years, you won’t be able to take out a new policy for them.

Ideally, you should get pet insurance as soon as possible because the younger your pet, the less likely they will have pre-existing conditions that your insurer won’t cover.

You’ll be able to keep the same policy for your pet for as long as you’d like after they turn nine, provided there’s no break in cover. If you decide to discontinue the policy after this age, it’s unlikely that you’ll be able to get your pet covered again.

Pet insurers usually don’t mandate which vet you should use, so you can generally take your insured cat or dog to any veterinary practitioner, specialist, animal clinic or pet hospital that’s licensed and registered in Australia.

Some insurers and vets may have agreements in place that enable a direct payment from the insurer to the vet, depending on your policy, so that you only need to pay the policy excess and any remaining amount on the bill (once your benefit percentage has been applied).

Different insurers place their own annual limits on the services and treatments you can claim on your policy. Some policies may also have sub-limits for specific conditions (e.g. an annual limit on medicine).

Limits may become an issue if your pet ends up needing intensive ongoing treatment. Though it’s impossible to foresee any future issues, reading through your policy’s PDS so you know exactly what you’ll be covered for can provide peace of mind.

Pet insurance premiums are calculated based on the risk profile of your pet and the likelihood of you claiming on a policy. Your pet’s age, breed, health status and other factors are considered when you take out a new cover, which is why it’s important to insure your pet when they’re young and before they develop any health problems. The type of cover you choose will also impact the cost of pet insurance. For example, basic pet insurance policies will be cheaper than more comprehensive policies with add-ons.

An excess is the fixed amount you pay towards a claim, with your insurer covering the rest of the vet bill up to your benefit percentage. The general rule of thumb is the higher your excess payment, the lower your monthly premium and vice versa.

You’ll need to pay an excess each time you claim on your pet insurance policy, although this can vary between insurers. For example, some policies may only require one excess payment per condition.

Some insurers will apply the policy excess before the benefit percentage is applied, while other insurers will apply the policy excess after.