The pros and cons of Pet Insurance in Australia

Is Pet Insurance worth it in Australia? Let’s weigh the pros and cons for the average Australian pet-owner. First off, it’s no surprise that the cost of owning a pet has risen over the past years, and so have the treatment costs for pet injuries and illnesses.

Pet care costs an average of $1,715 per year for cats and $3,218 for dogs. That doesn’t even include the potential vet bills should they fall ill or get an injury — yet only 7% of Australian pet owners have Pet Insurance to help cover it. 

Naturally, the cost of Pet Insurance rises with the cost of vet care. For this reason, the debate between whether or not Pet Insurance is really worth it continues to depend on the pet’s age, location, lifestyle, and even breed.

For example, Beagle owners claim an average of $1,428 per year for healthcare costs alone. Being one of the most expensive breed in the market, Pet Insurance can really help offset these costs.

The rise in flexible and transparent policy options are allowing Australian pet-owners to make more informed financial decisions for their pets. In this blog, we’ll list down the top factors to consider to help you decide what’s right for your pet and budget.

How does Pet Insurance work?

Just like health insurance for humans, Pet Insurance is built to help pet-owners cover the cost of pet health care. It helps pay for eligible veterinary expenses, like illnesses and injuries, through a system where you pay a monthly or annual premium.

After paying your vet bill, you submit a claim to your insurance provider for reimbursement of a portion of the cost. This portion, AKA the Benefit Percentage, is usually determined by the policy plan you choose.

Keep in mind that Pet Insurance does not cover Pre-Existing Symptoms and Conditions and routine care. For things like spaying or flea treatments, the Knose Pet Care plan can be a great add-on to your policy!

💡 Did you know? At Knose, we have policy plans with customisable options! We let you customise your pet policy’s Benefit Percentage, Annual Limit, and Annual Excess. For eligible pets you can also add on Optional Benefits as well as routine care.

The pros of Pet Insurance

Here are the top benefits of having Pet Insurance to cover your pet’s healthcare needs.

1. Financial protection during emergencies

Did your pet swallow something they shouldn’t? Have they escaped the house again? The truth is, our pets’ silliness can end up terribly wrong. 

In this example, a Knose member tagged us on Instagram, sharing the story of her Golden Retriever who was treated in the ICU for swallowing concrete, jumping out the window from a moving car, and “a lot more golden traits.”

With Knose Pet Insurance, she was able to save $9.5K in just 4 months (story was published in April 2025)!

2. Access to better pet care

Unlike health insurance for humans, you are not restricted to a specific network of veterinarians. And if you find a vet that better suits your pet’s needs a bit further from your local one, you don’t have to worry about your Pet Insurance coverage.

After all, not all vet clinics have labs with complete services. You’ll have more options when it comes to services like ultrasounds, x-rays, and blood tests, which are essential for diagnosing and treating many common pet conditions.

Furthermore, Knose offers Optional Benefits (cover for Dental Illness, Behavioural Conditions, and Specialised Therapies) for pets below 3 years of age, but can continue for a lifetime! Adding this to your pet’s cover opens doors for potential life-saving treatments. For example:

• Small-breed dogs, including Poodles and Dachshunds, are the most susceptible to Dental Illness due to their small jaws. In cats, the Siamese are prone to oral lesions while Main Coons and Persians are predisposed to gum disease.
• Hydrotherapy (a form of Specialised Therapy) works wonders for dogs and cats recovering from surgery or suffering from chronic conditions like arthritis. Large breeds like Golden Retrievers and Labradors are prone to arthritis and elbow dysplasia.
• Is your dog or cat suffering from anxiety, aggression, or compulsive behaviors? Vet-recommended behavioural therapy can help improve your pet’s mental wellbeing.

3. More proactive approach to your pet’s health

Pet Insurance allows you to spread the cost of pet care over time. For some pet-owners, this means no more needing to choose between their financial well-being and their pet’s health.

If your pet isn’t insured yet, chances are that you’re worried about your pet getting sick or injured, not just because of their health, but also because of the potential cost of treatment. And as a responsible pet-owner, you also want the best care available for your pet’s quality of life.

“In my years of working in veterinary emergency and critical care, I have found that the majority of patients requiring treatment for illness or accidents are uninsured. Many owners I have spoken with assumed their pets would remain healthy and regret not having taken out insurance.” 

— Dr Caroline Romeo
BVSC (HONS) MANCVS (ECC)
AREC Veterinary Director

With Pet Insurance in place, you can confidently seek the right eligible treatments for your pets.

The cons of Pet Insurance

Pet Insurance should help you cover your pet’s health care, not the opposite. However, it does come with ongoing costs and exclusions. Here are the top drawbacks that Pet Insurance policy-holders face:

1. Upfront payment of vet bills

In most cases, you have to pay the vet bill in full at the time of service and then file a claim for reimbursement. After that, you have to wait a few days before seeing the amount reflected in your bank account of choice.

There’s also such a thing as Exclusion Period (AKA waiting period) when you start your Pet Insurance policy. During this time, some conditions aren’t covered.

💡Some vet clinics offer payment plans or deferred payment options like AfterPay and VetPay for emergency care.

2. Pre-Existing Symptoms and Conditions are not covered

Pre-Existing Symptoms and Conditions — that is, any illness,injury or Specified Condition your pet showed signs of before your policy began — aren’t covered by Pet Insurance. This includes conditions that first appeared or were diagnosed before your cover started (or during any applicable Exclusion Period).

Because older pets (aged 9 and above) are more likely to have health issues already present, they’re usually no longer eligible for new Pet Insurance policies.

That’s why it may be best to insure your pet as early as possible. For example, a puppy insured from 6 weeks of age can enjoy lifetime cover if the policy is maintained continuously. On the other hand, a dog first insured at 7 years old may already have a skin or joint condition that won’t be covered under any new policy.

You might wonder — why aren’t Pre-Existing Symptoms and Conditions covered?

Pet Insurance is designed to protect against unexpected illnesses or injuries, not known or ongoing ones. Excluding Pre-Existing Symptoms and Conditions helps insurers manage risk fairly, keep premiums affordable for everyone, and prevent fraudulent claims. 

Covering existing issues would drive up costs for all pet owners, making insurance less accessible overall.

3. Policy exclusions for certain non-emergency conditions

There are also conditions that cannot be covered under any policy, in order to make Pet Insurance more available to all policy holders. These are typically non-urgent or elective treatments rather than medical emergencies.

Policy exclusions are usually permanent, meaning they apply no matter when the condition develops. These include:

• Routine and preventative care (e.g. vaccinations, check-ups, grooming, desexing)
• Elective or cosmetic procedures
• Breeding-related treatments
• Experimental or unproven treatments
• Pets used for commercial/sporting purposes
• Banned or dangerous breeds in Australia

At Knose, we give policy holders the option to add on Optional Benefits and routine care to their policy for eligible pets.

The Knose Pet Care Plan is a separate product designed to support your pet’s everyday, preventative care. Its key feature is convenient home-delivered parasite protection, helping you stay on top of routine health needs.

The Comprehensive Plan also includes an annual $100 allowance you can use toward treatments not typically covered by Pet Insurance — such as grooming, vaccinations, and other preventative services.

Best of all, it’s a stand-alone product that gives you 24/7 access to our Pet Health Hotline. So, if you’re not quite ready to take out a Pet Insurance policy but still want consistent care and professional advice, the Knose Pet Care Plan is a great place to start.

How to decide if Pet Insurance is worth it for you: Take the quiz!

Pet Insurance can feel confusing — especially when you’re trying to figure out if it’s really worth it. The truth is, it depends on your pet, your lifestyle, and your budget.

To make it easier, we’ve created this 8-point quiz to help you see where you stand. In just a few minutes, you’ll discover what factors matter most — and whether Pet Insurance could be a smart move for you (and your furry best friend).

Mechanics:

Depending on your answer for each scenario, give yourself:

• ✅ = 2 points (Strong case for Pet Insurance)
• 🟨 = 1 point (Consider partial or flexible cover)
• ⚠️ = 0 points (Limited benefit)

If this sounds like you…	Insurance is likely…
1. Your pet’s age
Your pet is young and healthy (under 8 years old).	✅ Worth getting now — premiums are lower and Pre-Existing Symptoms and Conditions can be avoided.
Your pet is already senior (9+ years old) or has chronic issues.	⚠️ May offer limited value — coverage exclusions and higher premiums apply.
2. Your pet’s breed
Your pet’s breed is known for hereditary or high-risk conditions.	✅ Highly recommended — potential vet bills can be thousands per incident.
Your pet’s breed is generally low-risk and mixed breed.	🟨 Depends — may still be worthwhile for accidents or emergencies.
3. Your financial comfort
Emergency or specialist procedures can exceed $1,500–5,000+ in Australia. You feel comfortable with covering that upfront.	🟨 Optional — you might self-insure or save for emergencies.
A sudden $2,000+ bill would cause financial stress.	✅ Strongly recommended — helps provide financial support in emergencies.
4. Your lifestyle
Your pet goes hiking, to dog parks, or travels often.	✅ Worth it — higher exposure to accidents, bites, or foreign objects.
Your cat or dog stays indoors most of the time.	🟨 Consider accident-only insurance or routine care instead.
5. Access to vets / location
You live in a metro area with higher pet care costs and specialists nearby.	✅ Insurance can offset higher treatment costs.
You live rurally with lower-cost vet care or limited options.	🟨 May not save as much overall.
6. Risk tolerance
You’d rather pay a small predictable fee than risk a large surprise bill.	✅ Perfect fit — insurance offers peace of mind and predictability.
You prefer to take your chances and save instead.	⚠️ Only viable if you can self-fund care easily.
7. Preventive Care Needs
You want help budgeting for vaccinations, flea/tick, dental, etc.	🟨 Find a comprehensive insurance provider or choose a plan with optional routine care (like the Knose Pet Care Plan).
8. Pre-Existing Symptoms and Conditions
Your pet already has diagnosed issues.	⚠️ Limited benefit — exclusions may apply.

Quiz results

Total score	What it means	Our recommendation
13–16 points	🟩 Strong Case for Pet Insurance	Pet Insurance is highly likely to be worth it — your pet’s health risks, lifestyle, or finances suggest strong benefits.
8–12 points	🟨 Moderate Case for Pet Insurance	Consider partial or flexible cover (e.g. accident-only or adjustable annual limits) — especially for younger or indoor pets.
0–7 points	🟥 Limited Case for Pet Insurance	Insurance may not offer much value. A preventive care plan or dedicated emergency savings fund could be a better fit.

Note: This quiz is a general guide to help you better understand Pet Insurance — it’s not a definitive assessment or financial advice. Always consider your personal circumstances and read the full Product Disclosure Statement (PDS) and Target Market Determination (TMD) of your chosen provider before deciding if Pet Insurance is right for you.

Your pet’s score gives a sense of whether insurance could be valuable — but every pet is different. Compare Pet Insurance cover options and see what works best for you!