Is pet insurance worth it in Australia? Costs, pros and cons
Summary
Pet insurance can be worth it for many Australian pet owners, especially if they would struggle to pay an unexpected vet bill of several thousand dollars. Whether it is worth it for you depends on your pet’s age, breed, health risks, and whether you would prefer to budget with a premium rather than self-fund emergencies and illnesses. This guide explains average vet costs, average pet insurance premiums, the pros and cons of pet insurance, and how to decide whether it is the right option for your dog or cat.
Why you should consider pet insurance
Many pet owners deliberate whether it is worth getting pet insurance. Over the past decade, pet insurance has grown hugely in popularity, but even so, many dog and cat owners find it difficult to decide if they should take out pet insurance for their pet.
When your pet is happy and healthy, it is hard to foresee a time when things might go awry. But speak to any pet owner whose pet has undergone a serious accident or illness and they will often mention the huge financial expense required to get their pet back to good health.
The fact is that vet treatment is getting increasingly expensive and accidents and illnesses occur frequently among pets, especially in the early and later years. We know that most pets visit the vet at least a couple of times a year, and that vet bills for major surgery or illnesses often add up to thousands of dollars.
Quick answer: is pet insurance worth it?
- Often yes, if an unexpected vet bill of several thousand dollars would be hard to manage
- Often less valuable, if you can comfortably self-fund emergencies and major illness costs
- Pet insurance can help with eligible vet bills for unexpected accidents and illnesses
- It may be especially worth considering for young pets, breeds at higher health risk, or owners who want more predictable budgeting
- It is important to compare annual limits, excess, reimbursement percentage, exclusions and pre-existing condition rules
The cost of vet care
To weigh up whether pet insurance is worthwhile, it is important to be aware just how much treatment for pet health conditions can cost. Data provided by the Australian Veterinary Association show that the amount spent on our pets has ballooned over the last decade as better vet treatment options have become available, and there are no signs of this slowing.
The 2022 Pet Survey Report indicated that Australians spent more than $4.7 billion annually on Veterinary expenses – an increase of more than 80% since the previous survey in 2019.
According to the same survey, dog and cat owners who visit the vet are going multiple times a year – averaging 2.1 visits per dog and 1.9 visits per cat. The most common reasons tended to be check-ups and vaccinations, followed by eye, ear and skin conditions, de-sexing and dentistry.
Below are tables that illustrate the average and maximum veterinary costs for the most common health conditions for dogs and cats by age category (data from the Pet Health Monitor 2025). A starting point when considering whether pet insurance is worth it would be to ask yourself if you could afford bills like these at the time they arise, and if not, what would you do?
Top 3 health conditions for dogs under 1 year in 2024∅:
| Condition | Average treatment cost | Maximum treatment cost |
|---|---|---|
| Gastrointestinal conditions | $694 | $18,012 |
| Ear Infections | $330 | $5,998 |
| Skin infections / allergies | $324 | $10,670 |
Top 3 health conditions for dogs aged 1-8 years in 2024∅:
| Condition | Average treatment cost | Maximum treatment cost |
|---|---|---|
| Skin infections / allergies | $657 | $21,209 |
| Ear Infections | $444 | $20,655 |
| Gastrointestinal conditions | $872 | $37,599 |
Top 3 health conditions for dogs over 8 years in 2024∅:
| Condition | Average treatment cost | Maximum treatment cost |
|---|---|---|
| Osteoarthritis | $831 | $21,936 |
| Skin infections / allergies | $699 | $15,465 |
| Mass lesions (lumps and bumps) | $1,087 | $31,195 |
Top 3 health conditions for cats under 1 year in 2024∅:
| Condition | Average treatment cost | Maximum treatment cost |
|---|---|---|
| Gastrointestinal conditions | $703 | $13,918 |
| Eye conditions | $313 | $3,874 |
| Ear Infections | $337 | $4,736 |
Top 3 health conditions for cats aged 1-8 years in 2024∅:
| Condition | Average treatment cost | Maximum treatment cost |
|---|---|---|
| Gastrointestinal conditions | $884 | $26,987 |
| Urinary tract disorders | $1,519 | $33,270 |
| Eye conditions | $397 | $19,760 |
Top 3 health conditions for cats over 8 years in 2024∅:
| Condition | Average treatment cost | Maximum treatment cost |
|---|---|---|
| Gastrointestinal conditions | $1,017 | $22,515 |
| Urinary tract disorders | $1,350 | $22,945 |
| Dental conditions | $1,068 | $5,258 |
ØBased on PetSure claims data, 2024 calendar year. Reimbursement for these claims under a pet insurance policy would be subject to limits, such as annual benefit limits or sub-limits, benefit percentage, applicable waiting periods and any applicable excess. Cover is subject to the policy terms and conditions. You should consider the relevant Product Disclosure Statement or policy wording available from the relevant provider. Please note that values calculated are based on all claims for that condition and medically related conditions in each calendar year.
Because it is difficult to predict the costs of veterinary care, it can help to have measures in place to help prepare for the unexpected. Pet insurance can help by covering a portion of the eligible vet bill if the unexpected does happen.
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Average pet insurance costs
There are many factors that affect the price of your pet insurance, for example, the type of cover and options you have selected. We also take into account risk factors associated with you and your pet such as your pet’s breed and age. For instance, as your pet gets older the risk of your pet requiring treatment will increase and so the premium increases.
While premiums vary significantly depending on these factors, to give you an idea, we have summarised the median premium amount for new Nose-to-Tail Cover policies taken out in the first 6 months of 2025 below.
Median annual premium for new Nose-to-Tail Cover policies (January – July 2025)Δ:
| Species | Pet’s age at policy inception | Median annual premium |
|---|---|---|
| Canine (dog) | Under 1 year | $602 |
| Between 1-2 years | $625 | |
| Feline (cat) | Under 1 year | $333 |
| Between 1-2 years | $349 |
ΔBased on Bow Wow Meow policy data for all new Nose-toTail Cover policies incepted between 1 January 2025 and 30 June 2025, including all annual limit, benefit percentage, and annual excess options, excluding added extras eg. Booster Care and Routine Care. Does not include any processing fees.
When is pet insurance worth it?
Pet insurance may be worth it if:
- you would find it hard to pay an unexpected vet bill of several thousand dollars
- you want help budgeting for eligible accident and illness costs
- your pet is young and you want cover in place before health problems arise
- your pet’s breed is associated with higher health risks
- you would rather not make treatment decisions based mainly on immediate cost
Pet insurance may be less worthwhile for you if:
- you have enough savings to comfortably absorb major vet bills
- you are comfortable self-funding both emergencies and chronic illness costs
- your pet already has significant pre-existing conditions that would not be covered
- you are unlikely to claim because of the type of pet, age, or chosen level of cover
Pet insurance vs savings: which is better?
Pet insurance and a savings fund solve different problems. A savings account gives you flexibility and control, but it may take time to build enough money to cover a large emergency or illness. Pet insurance can help earlier, provided the condition is eligible and the policy terms are met.
For some pet owners, the best approach is a mix of both: insurance for large unexpected costs, plus savings for routine care, excess and anything outside cover.
Pros and cons of pet insurance
To help you weigh up whether pet insurance is worth it for your cat or your dog – and for you as their owner – we have put together a list of the pros and cons of pet insurance to help you make an informed decision. It is important to understand all the relevant factors, and to consider which pet insurance policy is right for your circumstances by reading the Product Disclosure Statement.
Pros of pet insurance
- Less out of pocket up-front: A serious injury or illness can leave you many thousands of dollars out of pocket, but having pet insurance can help you with this. With pet insurance, you can better prepare for the cost of eligible vet bills. And with GapOnly® claiming, you only have to pay the gap between your vet bill and your pet insurance benefit for eligible claims, so you won’t have to fork out as much up front.
- It is a form of budgeting: It is often difficult to discipline yourself to put aside money for pet emergencies. Pet insurance can help with the cost of eligible vet bills for unexpected accidents and illnesses.
- Give them the treatment they need: When your pet is insured, you will be covered for eligible vet treatments to help address their needs, allowing treatment decisions can be based on what’s best for your pet.
- Less to worry about: It is highly stressful when something happens to your beloved pet. Wondering how much the vet bill will be or how you are going to afford it does not help. Pet insurance can help alleviate these concerns by covering eligible vet bills so you can focus on what matters and how to help your sick or injured pet get through it.
Having pet insurance helps you to be the best pet parent you can be. Why? Because it helps you give them the care they deserve, so you can focus more on looking after them when they aren’t well, and less on the cost of their treatment.
Because it is difficult to predict the costs of veterinary care, it can help to have measures in place to help prepare for the unexpected. Pet insurance can help by covering a portion of the eligible vet bill if the unexpected does happen.
Get a quick quote
Cons of pet insurance
- Pet Insurance does not cover everything: It is simply not feasible for insurers to cover every potential situation that could happen to your dog or cat – this would cause pet insurance premiums to skyrocket and make it inaccessible to the majority of pet owners. Therefore, insurance policies typically have exclusions so that risk can be better managed. For example, many pet insurance policies in Australia do not cover dental procedures (Bow Wow Meow offers the option to add on Booster Care, which provides coverage for specified dental conditions). There are also often exclusions relating to voluntary euthanasia, pregnancy, elective or cosmetic procedures and pre-existing conditions (see below).
- You may be required to pay up front: Pet owners may need to wait some time until their claim is settled by their pet insurance company. However, Bow Wow Meow pays out more than 85%-95% of eligible claims within 5-10 working days from receipt of all supporting documentation, which means your rebate should be back in your account soon. We also provide GapOnly® claiming at participating vet clinics, meaning you only have to pay your portion of eligible vet bills and not the full amount up front.
- There is usually a co-payment and sometimes an excess to pay: Our Nose-to-Tail Cover gives you a choice of annual excess options and covers 70%, 80% or 90% of eligible veterinary expenses, depending on which percentage you elect when taking out your policy⑅. This allows you to have more control over your out-of-pocket costs.
- Some policies have sub-limits for certain conditions: Besides the overall annual policy benefit limit, some policies may also have sub-limits for certain items. Our Nose-to-Tail Cover offers generous cover with no sub-limits, giving you more benefits when you need them the most.
- Limited options if they do not have a policy before they turn 9 years old: Once a pet is over 9 years of age, you are unlikely to find pet insurance that will cover them. With our Nose-to-Tail Cover, you can start your pet’s cover any time before the age of 9 years when you first apply. As long as we continue to provide the product, we’ll offer renewal of your policy every year for your pet’s life (subject to the terms and conditions of the policy).
- Pre-existing conditions are excluded from cover: If your pet has had or currently has a condition that requires treatment and you decide to take out pet insurance, that condition will generally be excluded from cover.
| Pros of pet insurance | Cons of pet insurance |
|---|---|
| Helps with eligible unexpected vet bills | Does not cover everything |
| Makes budgeting easier | You may still need to pay upfront in some cases |
| Can reduce upfront out-of-pocket costs with GapOnly at participating clinics | There is usually an excess and co-payment |
| May make it easier to choose treatment based on care rather than cost | Pre-existing conditions are excluded |
| Peace of mind financially in event of a covered condition | Premiums generally rise as pets age |
What pet insurance usually does not cover
Pet insurance does not cover everything. Common exclusions may include pre-existing conditions, routine or preventative care unless added as an extra, pregnancy, elective procedures, and some dental treatment depending on the policy. This is why it is important to read the Product Disclosure Statement carefully before deciding whether a policy is right for you and your pet.
In conclusion
So, is pet insurance worth it? There have been several surveys conducted amongst pet owners asking how much they would spend to save their pet, if they were ill or injured. The majority answer that they would be willing to spend any amount needed. However, vets tell us that when some pet owners are faced with the treatment options at varying costs, they may choose the least expensive or most affordable treatment, with compromised outcomes.
Nowadays, pets are considered part of the family. Unfortunately, it is common for our furry family members to end up at an emergency clinic or speciality hospital at least once in their lifetime. Only ten to twenty years ago, many of the current veterinary procedures and treatments were not available. With the pace of technology and the resultant advances in veterinary care that we see today, pet owners are now able to provide their pets with highly specialised, quality vet care.
However, the costs of delivering better healthcare to our pets are continuously increasing. The specialisation of veterinary care in the future will provide us with even more options and even better outcomes…. and greater costs. Pet insurance can assist pet owners with unexpected vet bills. However, you should consider the features of each product available to help you find one that is suitable for you and your pet.
Bow Wow Meow Pet Insurance can help protect you and your pet should an unexpected trip to your vet occur.
- Find out more about our dog insurance options
- Find out more about our cat insurance options
- Get an instant online pet insurance quote
Bow Wow Meow is proud to have been awarded winner of Canstar’s ‘Most Satisfied Customers’ Award in the Pet Insurance category for both 2024 and 2025!
Bow Wow Meow is proud to be the only Pet Insurer that has been awarded Product Review’s Top Rated Pet Insurance every year from 2018 to 2026! This is based on 3,193 independent customer reviews (as at 09/04/2026), with an overall rating of 4.5 stars.
We also have the following ratings on other review platforms:
Google Review rating of 4.5 stars (based on 1,358 reviews)
Trust Pilot rating of 4.6 stars (based on 555 reviews)
Bow Wow Meow has been chosen as Winner of 4 categories in the 2026 Finder Pet Insurance Customer Satisfaction Awards!
– Most Trusted Pet Insurance
– Easiest to Claim Pet Insurance
– Most Recommended Pet Insurance
– Legendary Service Pet Insurance
We also received Highly Commended Awards for Loved Brand Pet Insurance and Best Value Pet Insurance.
Bow Wow Meow is an Australian-owned and operated pet insurance provider. Our focus is purely on pets, and we are proud to have helped provide peace of mind to over 200,000 Aussie pet owners since 2008.
