Tips for choosing pet insurance

Your level of coverage will determine how much of your vet bills will be reimbursed. This is your benefit percentage, and it can range between 70% and 90%. Some policies may cover more or even the total cost of the vet’s bill, while others will cover less.

For example, if your policy doesn’t include an excess, the vet charges you $400 for treatment and your benefit percentage is 75%, your insurer will reimburse you $300 – leaving you $100 out of pocket. If your policy includes an excess, your out-of-pocket expense will be higher.

All pet insurance products have a general limit (or benefit limit) on the value of claims you can lodge per policy period. Once you’ve hit this limit, you can’t claim any further for that year. You may also have sub-limits on certain types of claims. For example, you may have an annual benefit limit of $10,000, but a $500 sub-limit for cruciate ligament conditions and another $500 sub-limit for tick paralysis treatment.

You may have to pay an excess if you claim, so consider this when choosing a policy. Your excess may be payable per claim, per condition or annually, depending on your insurer. Some insurance providers apply the policy excess before the benefit percentage, while others apply it after.

You’ll usually choose a policy excess when you take out or renew your policy. You can pay a lower excess or no excess, which typically results in higher premiums (and vice versa). Most insurers require you to pay the vet bill upfront and submit a claim after treatment.

Pet insurance generally doesn’t cover pre-existing conditions or any related or bilateral conditions to a pre-existing condition. Some insurers may cover pre-existing conditions that have been fully cured for at least 12 months if you can provide clinical notes.

Any newly diagnosed ailment will be treated as a pre-existing condition and therefore excluded from cover if you decide to switch policies. You may also face higher premiums and more cover restrictions with each renewal.

There are other common exclusions to pet insurance, including (but not limited to):

• Dental care (unless included as an optional cover)
• Elective or specialised therapies (unless included as an optional cover)
• Vaccine-preventable diseases
• Pregnancy and obstetrics
• Transplants, prosthetics and other complex treatments.

Always read your PDS for policy exclusions and the insurer’s Target Market Determination (TMD) to be sure you’re buying a policy that suits your needs.

Dog insurance and cat insurance have a standard 30-day waiting period for illnesses, but some exclusion periods may be shorter depending on the insurer. Cruciate ligament conditions for both dogs and cats typically have waiting periods of up to six months. Some accidental injuries have no waiting periods. Check the policy PDS for specific waiting periods for different types of treatments.

You can cover most pets with an insurance policy when they turn six weeks old. Here are the reasons why getting your pet covered at an early age is good practice:

• You may not have to sit through waiting periods later, and you can claim on crucial treatment as needed.
• Most insurers won’t cover your pet for illnesses if you take out a new policy when they’re nine years old or older. Age limits will depend on the insurer, but most will continue to insure your pet after that age as long as your cover is continuous.
• Insuring older pets with pre-existing medical conditions can be difficult (and expensive), so take out cover earlier rather than later.

Your cover is assessed every year. As your pet gets older, they may become more expensive to insure – this will be reflected in how your premiums are calculated.