What is pet insurance? A beginner’s guide for pet parents 

It usually starts as an ordinary day. One moment your dog’s racing around the backyard like nothing could ever slow them down. The next, something seems off. And before you know it, you’re sitting in the vet’s waiting room. 

It’s often in moments like these that pet parents first hear the question: ‘Do you have pet insurance?’ 

If you’re new to the idea, you might be wondering what pet insurance actually is, how it works, and whether it’s worth having for your pet. In this blog, we’ll walk you through the basics of pet insurance in Australia, so you can understand your options and make informed choices for your pet’s care. 

Ready? Let’s dig into it. 

Table of contents 

1. What is pet insurance?
2. How does pet insurance work? 
3. The different types of pet insurance
4. What does pet insurance cover?
5. What pet insurance doesn’t cover
6. How much does pet insurance cost in Australia?
7. Choosing the right cover for your pet
8. Getting started

What is pet insurance? 

Pet insurance is a way to help cover unexpected vet bills when your pet becomes injured or ill. You pay an insurer a regular amount called a ‘premium’, and they reimburse your eligible vet costs based on the terms of your policy. (The terms of your insurance agreement can typically be found in a document called the Product Disclosure Statement, or PDS for short, which explains exactly what is and isn’t covered.) 

How does pet insurance work? 

Pet insurance works a little like health insurance for people, but with a few important differences. 

Here’s how it normally works: 

• You pay a premium (either monthly or yearly) to keep your pet’s policy active. 
• If your pet needs treatment, you pay the vet directly. 
• You then submit a claim to your insurer. 
• If your claim is approved, your insurer pays you back a portion of the vet bill. 

The amount you get back depends on your policy. Most policies include: 

• A benefit percentage, which is the portion of vet costs your insurer agrees to cover in case of a valid claim. 
• An excess, which is the amount you agree to contribute before your benefits apply. 
• An annual limit, which is the maximum amount you can claim each year. 

The different types of pet insurance 

Not all pet insurance policies offer the same level of cover. In Australia, most fall into one of the following categories, each designed to suit different needs, pets, and budgets: 

Accident-only pet insurance 

Accident-only cover helps pay for treatment if your pet is injured due to a sudden, unexpected event, such as a fall, cut, or collision. It doesn’t cover illnesses, but it can be a lower-cost option for pet parents who want basic protection for accidents. 

Accident and illness pet insurance 

Accident and illness cover includes treatment for both injuries and a wide range of illnesses. This type of policy offers broader protection and is a popular choice for pet parents who want support for unexpected health issues beyond accidents alone. 

Comprehensive pet insurance 

Comprehensive cover typically includes cover for accidents and illnesses and may also offer optional extras like routine care cover. It’s designed to support your pet’s health more holistically, giving pet owners more flexibility when treatment is needed. 

What does pet insurance cover? 

Most pet insurance policies are designed to help with unexpected vet bills. 

Depending on your policy, this can include cover for: 

• Treatment after accidents 
• Illnesses and diseases 
• Diagnostic tests such as blood work or imaging
• Surgery and hospital stays 

How much you can claim back, and for what, depends on your policy’s conditions, benefit percentage and cover limits. 

What pet insurance doesn’t cover 

Like with all insurance policies, there are certain things that pet insurance doesn’t cover (often referred to as ‘exclusions’). Knowing these upfront can help you make a more informed decision when choosing a pet insurance policy and avoid surprises later on. 

Pet insurance normally doesn’t cover: 

• Pre-existing conditions, which are health issues your pet had, and showed signs of, before your cover started. 
• Exclusion periods, which are set times after you take out a policy before certain claims are allowed.
• Routine care, such as vaccinations or parasite prevention (unless added as an optional extra). 

Because cover exclusions and exclusion periods vary between policies, remember to always check an insurer’s PDS before committing to cover.

How much does pet insurance cost in Australia? 

The cost of pet insurance in Australia varies depending on a few different factors, including: 

• Your pet’s age and breed 
• Your cover limits, benefit percentage, excess etc. 
• How comprehensive your pet’s cover is 

In general, premiums tend to increase as cover becomes more comprehensive. Basic accident-only policies usually cost less, while broader cover options are priced higher due to the more comprehensive protection they offer. 

Choosing the right cover for your pet 

When comparing pet insurance policies, it’s important to look beyond the price alone. 

Consider: 

• What conditions and treatments are covered
• Any exclusion periods before claims can be submitted
• Annual limits and benefit percentages
• How straightforward the claims process is

Most importantly, look for a policy that suits your pet’s needs, considers the conditions their breed may be more likely to face, and comes from an insurer whose values align with yours. Choosing an insurer like RSPCA Pet Insurance, for instance, also means supporting a long-standing commitment to animal welfare that goes beyond insurance. 

Getting started 

If you’re thinking about getting pet insurance, choosing a provider you trust matters just as much as choosing the right level of cover. 

At RSPCA Pet Insurance, our cover is backed by over 150 years of animal welfare experience. It’s been designed with input from RSPCA vets, shaped by real-world care, and guided by one simple belief: Pets deserve protection that puts their wellbeing first. 

And when you choose RSPCA Pet Insurance, you’re not just protecting your pet. You’re helping to further the RSPCA’s legacy and supporting vulnerable animals across Australia. 

To learn more about how RSPCA Pet Insurance could support you and your pet, click here. Or, if you’re ready to take the next step, you can fetch a commitment-free pet insurance quote online. 

Disclaimer 

As with any insurance, terms, conditions and exclusions apply. Please read the Product Disclosure Statement to make sure this cover suits your needs. 

 

References 

[1] Australian Securities and Investments Commission (ASIC). Pet insurance. MoneySmart. Available from: https://moneysmart.gov.au/add-on-insurance/pet-insurance

[2] Actuaries Institute. A brief discussion of pet insurance in Australia. Actuaries Institute; 2023. Available from: https://www.actuaries.asn.au/research-analysis/a-brief-discussion-of-pet-insurance-in-australia

[3] RSPCA Pet Insurance. Product Disclosure Document. RSPCA Pet Insurance; 2026. Available from: https://www.rspcapetinsurance.org.au/product-disclosure-statement/