It’s a relaxed Sunday afternoon and your playful puppy is gnawing enthusiastically on its favourite chew toy. Minutes later, you hear gagging and you have to frantically rush to the vet.
After a few tests, the vet confirms that a piece of the toy has lodged in your pet’s digestive tract and emergency surgery is needed.
The vet bill? Over $6,000.
For many Australian pet owners, these unexpected emergencies are all too familiar. Without the right insurance, vet bills can quickly escalate and the financial strain can be overwhelming. That’s why extensive pet insurance isn’t just something nice-to-have— it’s essential.
Among the many factors to consider, the annual limit is one of the most important. It determines how much your insurance provider will cover across the year, and can mean the difference between peace of mind and out-of-pocket panic.
TL;DR: Why Your Pet Insurance Annual Limit Matters
➡️ Vet bills can be expensive and unpredictable. Your annual limit is the maximum your insurer will cover per year—and it can mean the difference between coverage under your pet insurance and major out-of-pocket costs. Many Aussie pet insurance plans also come with condition limits or sub-limits that cap specific treatment costs.
➡️ Knose Pet Insurance stands out by offering high annual limits ($7,500, $12,500, or $25,000) without any condition or treatment sub-limits, so you can get full use of your annual limit. You also get flexibility, and customisable extras—all with transparent cover that works when your pet needs it most.
🔍 Choosing pet insurance? Make sure the annual limit and other restrictions won’t leave you short in a crisis.
- What is an Annual Limit in Pet Insurance?
- Pet Insurance Terms you should know
- Standard Annual Limits in Australian Pet Insurance
- Why Pet Insurance Annual Limit matters
- What should you ask yourself when choosing Pet Insurance?
What is an Annual Limit in Pet Insurance?
Your annual limit is the maximum amount your pet insurance provider will pay you for eligible claims within the insurance period (typically one year), as stated in your Certificate of Insurance. Think of it as the financial ceiling for your policy. Once this ceiling is reached, any additional costs are your responsibility.
Scenario 1: A High Pet Insurance Annual Limit
Let’s say that you’ve chosen Knose as your pet insurance provider and your policy has a $25,000 annual limit. Over the year, your pet undergoes several eligible treatments totalling $20,000. You’re covered for all those treatments, and you only need to pay annual excess and remainder of benefit percentage (e.g. 20%, if you’ve chosen 80% benefit percentage).
Scenario 2: A Low Pet Insurance Annual Limit
Alternatively, if you had opted for a policy with a $15,000 annual limit, and throughout the year, your eligible vet expenses hit $20,000 due to an accident and ongoing care, then the last $5,000 will not be covered by your pet insurer.
These differences may seem abstract until you’re managing the costs of an unexpected emergency treatment for your pet.
Pet Insurance Terms you should know
While understanding the annual limit is crucial, there are other interconnected factors in pet insurance. Many pet insurance policies may include other limitations that can catch pet owners off guard.
Pet Insurance Condition Limits
Pet insurance condition limits refer to the specific caps on how much your insurer will pay for particular medical conditions. Even if your overall annual limit is high, you might only be covered for a small portion of costs for a certain type of condition.
👉 Example: You have an annual limit of $15,000. Your pet develops a recurring skin condition but your policy caps skin condition claims at $2,000. Any further costs will have to be paid by you.
Pet Insurance Sub-limits
Pet insurance sub-limits are similar to condition limits, but apply to treatment categories rather than specific health issues. There might be a much lower cap on what you can claim for surgery, medication, or dental care, even if your total annual limit is much higher.
👉 Example: Your dog needs a $5,000 surgery. Your annual limit may be $15,000 but your policy includes a surgery sub-limit of $2,000. That’s $3,000 you’ll need to pay yourself.
These restrictions are more common than you think and can greatly undermine the confidence pet parents had when they purchased pet insurance.
What are the common Annual Limits in Australian Pet Insurance?
Let’s see how Knose Pet Insurance compares to some other Australian pet insurance companies.
| Policy Tier | Average Annual Limit | Common Policy Limits |
| Basic | $5,000–$8,000 | Includes annual sub-limits and waiting periods. For example, some insurance providers impose a $2,500 sub-limit for cruciate ligament surgeries1 and this benefit only becomes available after a six-month waiting period. |
| Mid-Range | $10,000–$15,000 | Includes annual condition limits. For example, some insurance providers apply a $500 condition limit for skin conditions2. |
| Premium | $15,000–$20,000 | Fewer sub-limits, but can still be present. |
| Knose Pet Insurance | Offers 3 options for annual limits: $7,500, $12,500, $25,000 | No sub-limits, which means there are no condition or treatment-related limits within the annual limit! |
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Drawbacks of Tiered Insurance Plans
Tiered insurance plans may appear conventional, but they often fall short of meeting real-life needs. Lower tiered plans might not cover enough in emergencies, while higher tiered plans can cost significantly more for benefits you may never use.
Even premium plans often include condition limits or sub-limits that restrict reimbursements for specific treatments. As pets age or develop new issues, owners may be forced to upgrade or switch plans—facing rising premiums and limited flexibility along the way.
Why Knose Pet Insurance stands out
Knose breaks away from the tiered plan model with a transparent and customisable approach to coverage.
- Knose offers one of the highest annual limits in the industry, which gives you room to handle serious or multiple health issues in a single year.
- There are no sub-limits or condition limits for covered Conditions, which means your full annual limit is available for any eligible treatment your pet may need.
- Plans are customisable to your needs. You can tailor your plan with extra optional benefits which include behavioural issues, dental treatments, and specialised therapies; available for pets insured with Optional Extras below the age of 3!
- Your policy is simple and transparent. This approach ensures that there are no confusing tiers or clauses so what you see is what you get.
Why Pet Insurance Annual Limit matters
Unfortunately, it’s easy to underestimate how quickly vet bills can add up. Pets can face multiple or ongoing health issues in a single year. Whether it’s allergies, infections, or joint injuries, these all require costly treatments. Even one emergency surgery or extended illness can push you past your policy’s annual limit.
Some common real-life examples include foreign object removal surgery which can cost over $6,000. During Australia’s tick season, related illnesses can easily climb to $5,000 or more depending on severity. Other conditions like cruciate ligament disease in dogs, which affect the legs and joints, can involve ongoing costs of $3,000 to $5,000 or more.
Having a low annual limit can leave pet owners without wiggle room, forcing them to make tough decisions between partial treatment or paying large amounts unexpectedly. A higher annual limit helps ensure your pet gets the full care they need, when they need it, but it comes with higher monthly premiums.
How Pet Insurance Claims and Limits work together
To help you better understand how the key parts of your pet insurance policy work together, it’s important to see how claims are processed and how your annual limit applies.
When you make a claim, your benefit is calculated using your chosen benefit percentage, and applied to the total eligible vet costs, after subtracting the portion you’ve agreed to pay yourself (this is called annual excess). This calculated amount is reimbursed to you up to your annual limit. At Knose, there are no sub-limits or condition caps, which means your entire annual limit is available for any eligible treatment.
This could make a huge difference, especially when facing multiple claims in a year. If your pet has surgery early in the year and later develops an illness, your remaining annual limit can still help cover those future costs. It’s peace of mind you can count on, all year round.
💡 Did you know? These pet health issues are more common than you think.
According to internal Knose data from 2023–2024, some of the most frequent and costly claims weren’t for rare diseases but for everyday health issues that can affect any pet:
• Gastrointestinal and digestive disorders
• Unforeseen illnesses (e.g. respiratory infections, health complications)
• Urinary system disorders
What should you ask yourself when choosing Pet Insurance?
Picking the right pet insurance isn’t just about the price. We encourage you to find the policy that truly fits your pet’s needs and provide you with peace of mind. Here are a few simple questions to help guide your decision:
Questions about the Pet Insurance Policy
- What’s the maximum annual limit? Is it high enough to cover any major surgeries or ongoing conditions if something serious happens, knowing a higher limit means higher monthly premiums?
- Are there condition limits or sub-limits? Some policies cap payouts for certain treatments. Read the fine print and make sure you understand what’s covered and what’s not.
- Can I customise the plan, or is it tiered? Customisable plans can give you more control while tiered ones may lock you into paying for coverage that does not fit your needs.
Questions about your pet and lifestyle
- Does my pet’s breed have common health issues? For example, large dogs like Labradors can have joint issues.
- Is my pet curious or prone to accidents? Some pets love to explore, so they often get into some trouble, or eat everything in sight!
- Could I afford to pay expensive vet bills if something serious happens? If not, choosing a plan with a higher annual limit can help protect you from unexpected costs, although it comes with higher monthly premiums.
We know that understanding the annual limit, and the fine print behind it, is essential. That’s why Knose keeps things simple with clear, customisable cover that offers high annual limits, without the sub-limits or confusing tier models.
When it comes to protecting your pet, it’s not just about picking the most affordable monthly premium. It’s about knowing that when your furry family member needs you most, you can give them the care they deserve.
Post by Knose Pet Insurance in collaboration with Marie Boncan
Marie grew up surrounded by animals, but caring for Kublai, her Yorkie-Maltese mix with a liver shunt, sparked a deeper commitment to pet health. Drawing from her experience caring for a pet with special needs and her strength in academic writing, she creates insightful content that shines a light on key pet care topics for Knose as a freelancer.
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- According to Sandringham Veterinary Hospital, the cost of a Tibial Plateau Levelling Osteotomy (TPLO) surgery, a procedure to repair a torn cranial cruciate ligament, can range from $3,000 to $8,000.
↩︎ - The average cost of dog treatment for skin conditions in Australia is approximately $520, with some cases reaching up to $17,460 per year.
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