Ways to save with your pet insurance

Published February 2024 | 5 min read
Expert contributors Dr Magdoline Awad, veterinarian; Joni Hudson, chief insurance officer at PetSure
Words by Carrie Hutchinson

Keeping our furry friends healthy can come with some hefty and unexpected costs. Here's how pet insurance can help with vet bills.

When a family member suddenly becomes ill or has an accident, the first thing you do is seek medical care. But what happens if that family member has four legs and a serious injury that might cost thousands of dollars to treat?

That's a question facing the almost 70% of Australian households that own a pet. And while pet parents want to ensure their dog or cat receives the best possible care in the event of an unexpected health issue or accident, the skyrocketing vet costs can leave them with some tough decisions to make. That's where pet insurance can save you money on your pet's health in the long term.

How much does it cost to own a pet?

Before you added a canine or feline companion to your family, you likely did some sums: how much would it cost to feed them, buy them a bed and collar, and get their regular vaccinations and check-ups? Then there's grooming, toys and boarding when you go away. According to Animal Care Australia, it costs about $1,627 a year to keep a dog and $962 for a cat. And that's if they stay healthy.

Unfortunately, no matter how carefully you look after a furry companion, accidents and illnesses do happen. For a pet parent, the worst scenario is not being able to afford the best treatment.

"With no Medicare for pets or government subsidies like we see in human healthcare, pet health costs can be significant and unexpected," says Joni Hudson, Chief Insurance Officer at PetSure. "PetSure research shows that, on average, pet parents would have trouble finding more than $3,000 for an unexpected pet health expense, but our claims show many common accidents and illnesses cost much more to treat and can occur at any age."

Has veterinary care become more expensive?

Whether you've taken your dog to the vet to have his teeth cleaned or your cat is due for her vaccination, you might have noticed it has become more expensive. There are many reasons costs have increased, including our growing population of ageing pets, a shortage of vets and more expensive technology.

"Cutting-edge equipment and specialised training for veterinary professionals improve the accuracy and efficiency in diagnosis and treatment, and this is good news for pet healthcare outcomes," says Joni.

"However, these advancements – in addition to the fact that pets age at a more rapid rate than humans do – contribute to increasing pet healthcare costs year on year.

"PetSure data shows over the last 12 months, pet healthcare expenses have continued to increase at a rate that exceeds the high inflation seen across the economy. For example, to treat common pet health ailments like arthritis and elbow conditions, the year-on-year increase for treatment costs is more than 50%."

Is pet insurance worth it?

Pet insurance policies cost anywhere from $20 to $60 a month, according to a 2023 study by a comparison website. There are many factors that affect the price: the age of your pet, the breed (for example, the study found that it costs about $821 a year to cover a Maltese cross and $2,374 to cover a miniature Australian bulldog), pre-existing conditions and whether you’re looking for cover for accidents, illness, extras or a combination of all three. It's important that you understand exactly what's covered under your pet insurance policy and whether any waiting periods or exclusions apply.

Some pet owners might question the value of pet insurance, particularly when their pet is young, healthy and well. But when you consider the out-of-pocket costs of accidents and illnesses, budgeting for a monthly insurance bill could be a much smarter financial decision.

PetSure publishes the average and highest costs^* of common treatments for cats and dogs in its 2023 Australian Pet Health Monitor report:

Common treatments for cats^{^}

• Snake bite
  Average cost: $2,200
  Highest cost: $10,168
• Cat fight/bite injury
  Average cost: $562
  Highest cost: $37,435
• Feline lower urinary tract disease
  Average cost: $1,330
  Highest cost: $19,414
• Skin allergies
  Average cost: $451
  Highest cost: $4,990
• Gastritis
  Average cost: $627
  Highest cost: $13,862

Common treatments for dogs^{^}

• Skin allergies
  Average cost: $520
  Highest cost: $17,460
• Osteoarthritis
  Average cost: $423
  Highest cost: $12,255
• Ear infection
  Average cost: $315
  Highest cost: $16,670
• Tick paralysis
  Average cost: $2,402
  Highest cost: $53,331
• Lameness
  Average cost: $441
  Highest cost: $13,634

Some of these conditions might be easily covered by the average family budget, but a small complication or short hospital stay can send costs rocketing by thousands of dollars.

Even for an animal like an indoor cat, it's worth exploring illness-only plans, says veterinarian Dr Magdoline Awad.

"The most common diseases claimed for cats affect those that like both indoors and outdoors," she says. "As cats age, we see more chronic diseases like osteoarthritis, kidney disease, cancer and hormone-related diseases, like hyperthyroid and diabetes."

Keeping your pet healthy

While you can’t stop your pet from getting older, there are some things you can do to reduce the risk of them developing serious health conditions (and the associated costs that come with treating them).

• Maintain regular health checks and vaccinations: This includes staying on top of parasite preventatives such as flea, tick or heartworm medications.
• Take out pet insurance when they're young: If you’re considering pet insurance, it's a good idea to take it out when your pet is young as they're less likely to have any pre-existing conditions that might be excluded under your policy. You can apply for HCF Pet Premium and Pet Premium plus Routine Care Cover if your dog or cat is older than 8 weeks and younger than 9 years old.
• Watch their weight: Obesity can increase the risk of your pet developing conditions like diabetes, arthritis, heart and respiratory diseases and some cancers. PetSure's data found that diabetes costs, on average, $1,208 to treat in a cat, but that can rise to more than $41,000. Make sure your pet is getting a healthy diet, plenty of exercise and talk to your vet if you think they might be overweight.
• Know what to look for: Educate yourself on the health conditions most likely to affect your furry friend and how to spot the signs that something might be wrong. For example, certain dog breeds are more prone to ear infections so you might need to be checking their ears for signs of infection more regularly.
• Keep household toxins out of reach: Many household products can be dangerous to pets. In 2022, PetSure received 3,501 claims of toxicity in dogs and the highest claim amount was $16,246. Do regular checks to make sure cleaning products, pest control products and human medications are safely out of reach.

Does pet insurance cover dental?

In general, basic pet insurance cover does not include dental, or routine care dental, but you can add an optional dental illness benefit to some of HCF's pet insurance policies. Dental illness cover provides cover for up to $2,000 per policy period for specified conditions like gingivitis. Please note that a two-year waiting period applies to dental illness.

What happens if your pet isn’t covered?

If your vet says it will cost $10,000 to treat your furry buddy and you have no insurance, it's not always easy to find the funds – and that can make a stressful situation even more upsetting.

"As vets, we work with clients to find a suitable treatment plan that fits within the client’s financial constraints, but there are times when the client can’t afford any of the appropriate treatment options," says Dr Awad.

"We offer payment plans through providers such as Afterpay, Zip Pay etc. Many clients borrow money from family or friends, and some may seek social media options, such as GoFundMe, or even try providers that offer discounted services for low-income earners."

Consider covering your pet with HCF

HCF Pet Insurance members get up to a 15% discount⁺ on the cost of insurance for their pets. HCF Pet Insurance can help with the cost of eligible vet bills, providing up to 80% of costs back. There are excess options from $0 to $200, and a range of optional extras, so you can get the right coverage for your pet’s stage of life and needs.

Participating vets now also accept GapOnly^®, which means you only pay the difference between the vet’s invoice and the claim benefit under your policy^#. 

And you can connect 24/7 to an experienced Australian registered vet via video call or chat, at no extra cost, with Live Vet Support^**.