Pet Insurance functions very differently from internet network provider subscriptions or mobile phone contracts — it’s a protection plan based on your pet’s age, and risk profile.
At first glance, if premiums have increased, cancelling and starting fresh elsewhere can look tempting. But cancellation decisions can have long-term consequences for your pet’s health coverage and your finances.
Why policy renewals matter
Unlike some subscriptions that reset completely each year, Pet Insurance builds on your existing policy history. Renewing keeps your relationship with the insurer intact and may even include extra benefits along with cover continuity.
That continuity matters because many pet insurers in Australia exclude pre-existing symptoms and conditions from their coverage, which are health conditions that existed before cover started or within exclusion periods.
If you maintain your policy by renewals, conditions that developed after the start of cover may stay eligible for cover, depending on your policy, whereas cancelling and joining a new provider can make those same conditions to be pre-existing conditions elsewhere.
Your existing Pet Insurance cover has long-term value
Every year that you keep your pet insured with the same insurer, you can:
- Benefit from less chance of pre-existing conditions exclusions applying to your pet
- Access benefits that may not be available under new policies
In other words, the longer your policy runs without interruption, the better positioned you are to enjoy stable cover even as your pet ages.
Hidden Costs of Cancelling Pet Insurance
It may seem that cancellation of a pet insurance cover can save money, especially if premiums go up each year. But cancellation actually resets your insurance history.
For older pets, joining a new insurance provider (or re-joining the same one after a break) can trigger:
- New exclusion periods
- Fresh evaluations for pre-existing symptoms and conditions
- Age cut-offs for certain optional extras
- Potential refusal of new cover due to age or breed-specific risks
If your pet has a gap in pet insurance coverage, you may have to go through the whole process again of completing applications, providing veterinary history, or even getting new medical exams for your pet.
How Pet Insurance renewal works
“Automatic” Pet Insurance policy renewal
In Australia, most Pet Insurance contracts will be renewed, unless you actively choose not to (non-renewal or cancellation). Insurance providers will send a renewal notice in advance of the policy anniversary, outlining:
- Your new premium
- Any changes applicable to your policy
- Any updates to the Product Disclosure Statement
If you don’t act before the renewal date, the policy will be renewed and the next 12-month period begins. With many insurers, this also means exclusion or waiting periods do not restart as the cover continues uninterrupted.
Pet Insurance renewal notices
Under the Australian law, pet insurers are required to provide a notice of upcoming renewals and any changes to the pet insurance policy. This gives you a chance to review whether:
- Your policy still meets your needs
- Premium increases are reasonable for your situation
- Changes in your pet’s health require adjusted benefits
💡Renewal is your opportunity to make changes to limits, adjust excesses, or not renew, before the next period begins.
Why Premiums or benefits may change at renewal
Premiums often change each year due to factors such as:
- Your pet’s age and breed risk profile
- Overall industry veterinary cost inflation
Premium changes at renewal are common across the market. They often reflect reassessments of a pet’s risk profile and rather than penalties for past claims.
What can change when you renew Pet Insurance
To make sure your policy evolves with you and your pet, it’s essential to know what can change and what usually doesn’t.
Your pet’s age affects Pet Insurance Premiums
As your dog or cat gets older, the likelihood of illnesses and treatments rises. Most providers adjust premiums annually to reflect this increasing risk. This is common across the Australian market.
Updates to Benefit Percentage, Annual Excess, or Optional Extras
At renewal, Pet Insurance providers usually allow you to:
- Adjust your benefit percentage
- Change your annual excess
- Add or remove optional benefits (e.g., dental treatments, behavioural or specialised therapies), subject to eligibility criteria
These adjustments give you some control over the cost-benefit of your cover.
Updates to the Product Disclosure Statement
Each year insurers may update their Product Disclosure Statement to reflect regulatory changes, clarified language, or refined product features. Your renewal notice should flag if a new PDS applies to your pet from the renewal date, so you can understand any changed exclusions, definitions, or terms.
Policy renewal checklist for pet-owners
- Premium change: Has the price increased, and is it still reasonable?
- Benefit percentage: Does your current benefit percentage or reimbursement rate still suit your budget?
- Annual limits: Could decreasing it lower premiums without excessive out-of-pocket risk?
- Optional benefits: Are you paying for cover your pet no longer needs?
- Claims history: Has your pet had any health issues this year that a new insurer might treat as a pre-existing symptom and condition?
- Exclusion or waiting periods: Would not renewing and starting a new cover restart exclusion or waiting periods?
- Age considerations: Would your pet still qualify for a new policy?
- Updated Product Disclosure Statement: Have any exclusions or definitions changed at renewal?
💡If you have doubts about any of these questions, review the renewal documents carefully or speak to your insurer before making a decision.
What happens when you renew your Pet Insurance?
Unless your circumstances have changed dramatically, renewing your Pet Insurance policy may have more advantages than switching providers, or abandoning Pet Insurance altogether.
You’re protected for your pet’s “covered conditions”
One of the biggest risks when not renewing or cancelling your policy is “losing credit” for your pet’s covered conditions. In many Australian Pet Insurance contracts, health conditions that arose while the policy was active (and not pre-existing) remain covered if the policy gets renewed.
If you don’t renew or cancel the current cover, and later re-join with the same or another insurer, those once covered conditions are typically treated as pre-existing symptoms and conditions and are likely to be excluded from the new cover.
You avoid restarting Exclusion periods
Exclusion periods, or waiting periods, are a fundamental component of Pet Insurance. They are periods after the new start date of a policy during which claims for certain conditions cannot be made.
When you renew without a break, providers do not reapply exclusion periods for conditions that have already been covered under your current policy. However, non-renewal or cancelling and re-joining later will restart the exclusion period.
💡Knose offers one of the shortest exclusion periods for illnesses in Australia—14 days (except specified conditions) compared to others who typically offer exclusion periods of 21-30 days. Read more about Pet Insurance Exclusion Periods.
You consider your pet’s age and risks
Pet Insurers impose entry age limits for certain inclusions and optional benefits.
For example:
- The standard age limit for new policies is around 8-9 years old
- Optional benefits (like behavioural therapies) may only be available at younger ages
Cost vs Value
A lower premium does not automatically mean better value. When comparing renewal against non-renewal or switching, consider:
- Continuity of cover: Ongoing policies often protect conditions that would be excluded elsewhere.
- Out-of-pocket risk: Higher excesses and lower annual limits can outweigh premium savings.
- Future eligibility: Age and medical history could matter far more over time than short-term cost.
- Financial predictability: Renewal provides stability while restarting cover may introduce uncertainty.
When non-renewal or cancelling your policy might make sense
You no longer own the pet
If your dog or cat has passed away, been rehomed, or you no longer need the coverage, cancelling is appropriate and expected.
🌱 Knose partners with Trees for Pets, planting a memorial tree for every insured pet as a living tribute and reforestation effort, turning pet loss into a positive environmental impact.
Financial hardship
If premiums have increased beyond what you can afford, cancellation may be the option that best suits your financial situation. However, before you cancel, consider asking your insurer whether:
- You can increase the excess
- You can reduce benefit levels
- You can drop optional benefits
These adjustments may reduce cost without giving up your pet’s health coverage.
The policy no longer meets your needs
After reviewing your renewal notice and any Pet Insurance policy updates, you might decide that the product no longer fits your expectations. In that case, non-renewal or cancellation should be carefully considered after talking to your insurer. Sometimes making policy changes at renewal could still be a better option
Policy renewal vs non-renewal
| Scenario | What Can Actually Happen | Another approach | |
| Puppy or kitten, no claims yet | “I’ll cancel and find a cheaper policy.” | New exclusion or waiting periods apply to your new policy. Any early symptoms during a policy gap may be considered pre-existing symptoms and conditions under the new policy. | Adjust cover depending on your financial situation at renewal. |
| Young pet with one minor vet visit | “That issue was small, so switching insurers won’t matter.” | The new insurer may classify the issue as a pre-existing symptom and condition. | Renew to preserve continuity in coverage and maintain eligibility for related conditions. |
| Adult pet with recurring issues (e.g. skin, stomach) | “Premiums went up too much this year.” | Cancelling can increase the risk of permanent exclusions with other insurers. | Adjust cover depending on your financial situation and pet’s needs at renewal. |
| Senior pet (8+ years) | “Insurance isn’t worth it anymore.” | Some insurers place age limits or restrict cover options on new policies for senior pets. | Renew, as age limits rarely apply at renewal time. |
| Temporary financial pressure | “I need to cancel for now.” | Re-joining later resets exclusion or waiting periods. | Renew but modify the policy to keep it within budget. |
Switching Pet Insurance Providers? Here’s what you should know
Switching providers sounds like a good way to chase lower premiums, but it can be more complicated in practice.
Exclusion periods restart
A new provider is likely to impose fresh exclusion periods. Even if you overlap policies to avoid a gap, these new exclusion or waiting periods still apply.
Pre-existing symptoms and conditions won’t be covered
Most insurers will treat conditions your pet has experienced (or has shown symptoms of) as pre-existing if they were present before the new policy’s exclusion period ends. This means care that was covered under your old policy may be excluded.
Cheaper premiums may come with less cover
While you might pay a lower premium monthly, a lower price might mean:
- Higher annual excess, or bigger upfront payments before the insurer contributes
- Lower benefit percentage, and higher out-of-pocket expenses
- More sub-limits or restrictions on treatment cover
Knose focuses on helping pet owners make informed, confident decisions about their policies. We encourage pet owners to review their options, adjust their policy where possible, and discuss their needs with us.
FAQ: Pet Insurance renewal & cancellation (Australia)
- Can you cancel a Pet Insurance policy at any time?
Generally, yes. Australian insurers allow cancellation at any time, though refunds depend on a case to case basis, and claims made during that period may affect the refund amount.
- What happens if I do not renew my Pet Insurance?
If a policy is not renewed, your pet will not have any cover for any illnesses or accidents from the renewal date. If you later seek to re-insure, you’ll be treated as a new applicant, meaning:
- New exclusion or waiting periods apply
- Age-based restrictions may apply
- Pre-existing symptoms and conditions will be assessed/determined as at that point in time
- Can I reinstate my Pet Insurance after non-renewal or cancellation?
Reinstatement may be possible, but more often than not, you’re likely to be offered with a new policy. This means you are likely to go through the process of applying as a new applicant.
- How late is too late to get Pet Insurance?
Many providers impose maximum entry ages (commonly around 8–10 years old) for new policies. Renewals typically do not have age limits as long as the policy remains active and premiums are continuously paid. Knose’s upper age limit is up to eight (8) years and 364 days old for new policies.
- How early should I insure my pet?
Most Australian insurers allow coverage from around 6–8 weeks old, giving you early protection before common developmental conditions appear. Knose welcomes pets as young as six (6) weeks old, and once your pet is covered, there are no age limits for renewals. For pets younger than three years, pet owners can also add optional benefits with Knose.
Disclaimer
Knose.com.au Pty Ltd (ABN 70 680 822 986, AR 1311940) (‘Knose’) distributes and promotes Knose Pet Insurance as an authorised representative of ThePetInsuranceCompany.com.au Pty Ltd (ABN 38 620 795 735, AFSL 536651) (‘The Pet Insurance Company’). The Pet Insurance Company is an underwriting agency acting under a binding authority as agent for the insurer, Pacific International Insurance Pty Ltd (ABN: 83 169 311 193, AFSL No. 523921) (‘Pacific’). In all aspects of arranging this product, Knose and The Pet Insurance Company act as agents of Pacific and not as your agent.
Any advice contained in this material is general advice only and has been prepared without taking into account your objectives, financial situation or needs. You should consider the appropriateness of any such advice, the Product Disclosure Statement (PDS) and the Target Market Determination (TMD) available via knose.com.au or by calling 1300 356 642 before deciding to acquire or hold the product.
Post by Knose Pet Insurance in collaboration with Marie Boncan
